Grain & Feed Manager - Managers Forum

[Chris Clukey]

Looks like the Canadians are next to demand that their government impose fair practices:

http://www.canada.com/globaltv/winnipeg/story.html?id=e5158c2b-d6ec-4f2b-bb91-526da929cf12&k=0

Canwest News Service & Global Winnipeg
Published: Tuesday, March 25, 2008
The Canadian Wheat Board is demanding Ottawa review grain shipping charges after an independent study suggested that Canadian National Railway and Canadian Pacific Railway overcharged farmers by $175 million in 2006-07.

"This study is setting off all the alarm bells for farmers," said Ian Wishart, president of Keystone Agricultural Producers. "These results clearly show something is not right."

Farmers charge railways of gouging them on freight costs.

The study estimates railways charged $175 million more than was considered fair under the previous Western Grain Transportation Act, a news release states.

There has not been a full rail costing review since 1992.

"The railways continue to charge farmers based on a cost picture that was taken 17 years ago," said Glen Blakely, the president of the Agricultural Producers Association of Saskatchewan."

Railway profits have gone up while the level of service to farmers has gone down.

"It's time to bring railway costs back to reality and rebalance the equation for farmers."