Rail Costing Review

Supporting Content: 
Rail Cost Calculator
Visit the CWB web site to get an estimate on how much you may have overpaid the railways.

Get involved!

Demand a costing review of railway grain transportation

The Canadian Federation of Agriculture (CFA), Keystone Agricultural Producers (KAP), the Agricultural Producers Association of Saskatchewan (APAS), Wild Rose Agricultural Producers (WRAP), the Canadian Wheat Board (CWB) and the National Farmers Union (NFU) have joined forces since March of 2008, calling on the government for a full railway costing review in light of two reports conducted by respected rail analyst John Edsforth.

Edsforth concluded in his March 2010 study, “Estimated Contributions Earned by Railways from Handling of Statutory Grains and Grain Products, 2007/08 and 2008/09,” that the rail companies had overcharged farmers and exceeded the federally-regulated revenue cap by a startling $123 million (for the crop year 2007/08). This figure jumps to $275 million for the following crop year, 2008/2009. Farmers are paying more and more to ship grain while railway profits climb.

The study reports that Prairie grain farmers have paid anywhere from $4.61 to $8.81 per tonne more than what the railways could have obtained according to contribution levels that the Canadian Transportation Agency (CTA) had deemed fair and adequate under the Western Grain Transportation Act. The study is based in part on CTA decisions from 2007/08 (628-R-2008) and 2008/09 (529-R-2009).

How can farmers continue to accept the status quo? How much longer can the government justify its reluctance to launch a full rail costing review? 

The CFA encourages members to send an email postcard to Prime Minister Stephen Harper, Agriculture Minister Gerry Ritz, Minister of Transportation Chuck Strahl, and Minister of State (Transport) Chuck , as well as local MPs to convey the importance of having the government conduct a full costing review of the railway revenue cap. This issue has a huge impact on the competitiveness of Canadian farmers.

Act now to make your voice heard! Send an email postcard!

 

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