Bunge, Ft. Sask. ends trucking allowance

[melvill]

Beginning, August 1, 2005, the canola crusher at Fort Saskatchewan will stop paying trucking allowances for canola deliveries to their plant. What will that mean for you as a canola grower?

[melvill]

One more tidbit. Very, very early basis contracts for new-crop deliveries to the plant, include the trucking allowance. Producers signing recent basis or DDC contracts were all informed that the trucking allowance wouldn't apply after August 1.

[JD4ME]

It will be interesting to see with the rising fuel prices what kind of pressure is put on all the trucking incentives this fall ie wheat to terminals etc.

[crusher]

We farm close to Bunge and had a minor trucking premium. I anticipate their bids should now be higher to attract the same tonnage, but will likely draw from a tighter trading area. Net: good for me bad for those further out, although I have yet to realize this in their bids.

[melvill]

crusher, it's interesting to talk to Ft. Sask. staff. They DO NOT support the decision but it was made at a higher level and they fought it for some time but decided to quit knocking their heads on the wall. Company brass promised stronger basis levels in return but, of course, that may or may not show up until after Aug 1. But then what will be the yardstick to measure that basis against unless the company actually states that their basis is stronger by so many $$$ because of the policy change. We all know that isn't going to happen.