Unprecedented Rail Disruption to Significantly Impact Canola Farmers

Aug 23, 2024

As canola farmers head out to begin harvesting their crops, Canada's two railways are set to halt all operations, crippling grain movement and severely restricting farmers' ability to market those crops. Canadian Canola Growers Association (CCGA), along with other groups, is calling on the government to take steps that would limit the impact on farmers, the nation's economy, and Canada's global reputation.

“Concurrent labour disputes at both CN and CPKC are unprecedented, and farmers are already experiencing a slowdown in grain deliveries even before a strike or lockout takes effect," says Roger Chevraux, Chair of CCGA. “We face weather risk and market disruptions, but a complete shutdown of our grain handling infrastructure is an avoidable risk that farmers should not be dealing with at harvest."

Without rail service, the grain handling system quickly backs up. Elevators and canola processing plants reach capacity and stop accepting grain deliveries and, in turn, farmers lose the ability to sell their canola and manage their business cash flow needs. Beyond the farmgate, these disruptions negatively impact Canadian agriculture's ability to supply international customers and erode Canada's reputation as a reliable supplier in the global market.

Research shows that the daily flow of grains and oilseeds through Canada's rail system is valued at over $43 million per day in August, rising to more than $50 million per day in September. “These numbers show how significant the negative economic impact to farms will be," says Rick White, President & CEO at CCGA. “A strike on one railway is a crisis. A strike on both railways is unfathomable and is sure to damage Canadian farmers' livelihoods."

CCGA has sent a letter to Steven MacKinnon, Minister of Labour and Seniors, highlighting the seriousness of the situation and asking for immediate action to resolve it. In addition, StopTheStrike, an information and letter writing campaign initiated by agriculture groups, urges Minister MacKinnon to use section 107 of the Canadian Labour Code to help the parties reach an agreement under binding arbitration and suspend the ability for lockouts or strikes pending an agreement.

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Video: Why Port Infrastructure is Key to Growing Canada's Farms and Economy

Grain Farmers of Ontario (GFO) knows that strong, modern port infrastructure is vital to the success of Canada’s agriculture. When our ports grow, Ontario grain farmers and Canadian farms grow too—and when we grow, Canada grows.

In this video, we highlight the importance of investing in port infrastructure and how these investments are key to growing Ontario agriculture and supporting global trade. The footage showcases the strength of both Ontario’s farming landscapes and vital port operations, including some key visuals from HOPA Ports, which we are grateful to use in this project.

Ontario’s grain farmers rely on efficient, sustainable ports and seaway systems to move grain to markets around the world. Port investments are crucial to increasing market access, driving economic growth, and ensuring food security for all Canadians.

Why Port Infrastructure Matters:

Investing in Ports = Investing in Farms: Modernized ports support the export of Canadian grain, driving growth in agriculture.

Sustainable Growth: Learn how stronger ports reduce environmental impact while boosting economic stability.

Global Trade Opportunities: Improved port and seaway systems help farmers access new global markets for their grain.

Stronger Communities: Investment in ports means more stable jobs and economic growth for rural communities across Ontario and Canada.

We are proud to support the ongoing investment in port infrastructure and to shine a light on its vital role in feeding the world and securing a prosperous future for Canadian agriculture.

Special thanks to HOPA Ports for providing some of the stunning port footage featured in this video.