Newsroom
2007
Farmers load near-record number of producer cars
August 22, 2007
Winnipeg - Western Canadian farmers loaded a near-record number of producer cars with CWB grain in 2006-07, part of a growing trend spurred by high fuel costs, rail-line abandonment and elevator closures across the Prairies.
A total of 12,117 producer cars were loaded during the past crop year to transport farmers’ wheat and barley to port, up from 10,912 cars last year and 7,865 in 2004-05. The record was 12,124 cars in 1990-91.
"As more farmers find themselves faced with trucking grain long distances to elevators, they are creating their own solutions with producer cars, producer-owned rail lines and loading facilities," said Ken Ritter, chair of the CWB’s farmer-controlled board of directors. "As ongoing consolidation in the agriculture industry leads to service reductions and higher costs, we are committed to helping farmers save money on transporting their grain."
Producer cars are railway hopper cars that farmers can order to load themselves at a rail siding or producer loading facility located closer to home than the nearest grain terminal. Shipping grain by producer cars can save between $800 and $1,000 per car, depending on a producer’s location. Use of producer cars can also help maintain local rail access.
Between 1999 and 2006, the number of primary grain elevators in Western Canada dropped from 976 to 344. During the same period, 1,638 kilometres of grain-dependent branch rail lines were abandoned by the two major railways. Shortline railways, several of them owned by producers, acquired 465 kilometres of rail line. There are currently nine shortlines in Western Canada, five of which are owned or partly owned by producers and rural municipalities.
A large, high-quality crop in 2006 was another incentive to use producer cars, combined with high fuel prices that worsened the impact of elevator and rail-line closures.
Under the Canada Grain Act, farmers are entitled to order producer cars to ship their CWB and non-board grains. In recent years, very few cars have been used for non-board grains due to requirements for sales agreements to be in place before the grain is moved to port. Farmers apply for producer cars from the Canadian Grain Commission, which negotiates with the CWB and the railways that supply the cars. Once the orders are accepted, the final loading instructions are sent to the producer, the administrating company (if used) and the railways.
The CWB offers administration services to farmers who wish to use producer cars to get their wheat and barley into export position. A step-by-step guide for ordering and loading producer cars, including application forms can be found at www.cwb.ca/public/en/farmers/cars/.
Controlled by western Canadian farmers, the CWB is the largest wheat and barley marketer in the world. As one of Canada's biggest exporters, the Winnipeg-based organization sells grain to more than 70 countries and returns all sales revenue, less the costs of marketing, to Prairie farmers.
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For more information, please contact:
Maureen Fitzhenry
CWB media relations manager
(204) 983-3101
Cell: (204) 227-6927