Demand a railway grain transportation costing review

I am a Canadian farmer. I’m frustrated that the two big railway companies – CN and CP -- earn far more from handling grain that they should, according to decisions made by the Canadian Transportation Agency under the Western Grain Transportation Act. Western farmers have no alternative to moving their grain by rail, and it’s clear that the rail companies are taking advantage of this lack of competition.

The rail revenue cap on grain freight is the only remaining regulatory discipline to ensure fairness for farmers. But it is based on outdated cost figures from 1992, which is nearly 20 years ago! Things are very different today. Most importantly, more than 1,000 grain elevators have closed since 1992. Rail companies have benefited from such consolidations to reduce their own operating costs, but the savings have not been passed along to farmers.

I want the government to order an immediate costing review to ensure that railway freight rates are decided fairly and accurately, using today’s ACTUAL costs. This is a reasonable request. The rail service review is a worthwhile study, but it’s already behind schedule and is not mandated to address my concerns about the expenses I pay for grain transportation. We need a full costing review NOW!

A message from the Canadian Federation of Agriculture, Keystone Agricultural Producers, the Agricultural Producers Association of Saskatchewan, Wild Rose Agricultural Producers, the National Farmers’ Union, and the Canadian Wheat Board.