Farms.com Home   Ag Industry News

Grain Growers Ask Ottawa to Address Rail Transportation Issues

By Amanda Brodhagen, Farms.com

Grain Growers of Canada (GGC), a farm lobby group that represents the country’s 50,000 grain farmers, is asking the federal government to come up with a plan to address the persistent rail transportation issues plaguing prairie farmers.

In a Jan. 17 letter sent to the minister of agriculture Gerry Ritz and transport minister Lisa Raitt, the group expressed concern over the inadequate number of rail cars used to transport farmers’ crops to port.

“We ask the federal government to seriously assess the evolving rail capacity issues for Canadian farmers and provide recommendations for alleviating the concerns we have brought forward,” the GGC said in the letter.

Rail inefficiencies are causing economic hardship for farmers who cannot get their grain moved fast enough after last year’s record harvest. The farm lobby estimates the lost profits to be about $20 million.

GCC predicts that farmers will continue to yield bumper crops in the future, noting improved varieties have created a new norm.  “Last year’s harvest is the new normal,” GCC explains.

In the letter, GCC request to participate in the consultation process for the upcoming 2015 rail service review, and says farmers are anxious to see the rail service issues resolved before the upcoming crop year.
 


Trending Video

Will the 2025 USDA December Crop Report Be a Market Mover/Surprise?

Video: Will the 2025 USDA December Crop Report Be a Market Mover/Surprise?


Historically, the USDA December crop report is a non-event or another dud report as the USDA reserves any final supply changes to the final report in January of the following year in this case 2026. But after the longest U.S. government shutdown in history at 43 days and no October crop report will they provide more data/surprise and make an exception?
Our China U.S. soybean purchase tracker is now at 26.6% or a total of 3.2 mmt but for traders it’s taking too long to unfold.
The final Stats Canada production report was bearish canola and wheat projection a record crop in both (it adds to the global glut of supplies) and bullish local corn and soybean prices in Ontario/Quebec thanks to a drought. It will not help the fund flow short-term, the USDA may need to offset it?
A U.S. Fed interest rate cut of another 25-basis point next Wednesday (probability 87.1%) could help fund flow and sentiment in stock and ag commodities into year end.
More inflows into Bitcoin this past week saw prices rebound back above 90,000 with support at 82,000 and resistance at 96,000.
A V-shaped bottom in cattle suggest the lows are in after Mexico reported another new world screwworm case. Lower weights, seasonal demand and higher U.S. beef select/choice values with a continued closure of the Mexican border to cattle will result in a resumption of higher cattle futures into yearend.
Australia is expected to produce its 3rd largest wheat crop ever at 36 mmt adding to the global glut of supplies.
Reports of ASF in hogs in Spain the largest pork exporter in Europe could see the U.S. win more pork export business long-term.
If the rains verify into next week of 3-5 inches for Brazil it would go a long way to fixing the dry regions from the last 2-months, but the European weather model has been wrong for the past 2-months!
Natural gas futures are surging to the 3rd price count as frigid hold temps set in.
CDN $ is also surging to end the week on a very resilient economy and better employment numbers suggesting no interest rate cuts next week.
Finally, the CFTC report showed funds were net buyers of soybeans but sellers of corn, canola and wheat. In real time the funds have gone back to selling as they take some profits.