Newsroom
2005
CWB support of FRCC could save Prairie farmers millions
Feb. 3, 2005
Winnipeg - The CWB's financial support of the Farmer Rail Car Coalition (FRCC) has the potential to save farmers millions of dollars, the chair of the CWB's farmer-controlled board of directors said today. Speaking in advance of the FRCC's February 7 presentation to the House of Commons Standing Committee on Transport, Ken Ritter reiterated the CWB's support for the group's proposal to acquire and manage the federal government's 13,000 hopper cars.
At its January meeting, the CWB board of directors approved a loan of $25,000 to the FRCC. "This is a small investment with the potential for huge returns," Ritter said, noting grain transportation is the single biggest cost in grain marketing.
"The FRCC has put forward the only proposal for the divestment of the federal hopper car fleet that is cost effective, resolves the issue of the revenue cap for maintenance of the cars, allows for replacement of the fleet and puts farmers, not the
railways or grain companies, in control."
The loan is in addition to a grant of $85,000 and a previous loan of $50,000 to the FRCC; both loans are repayable should the FRCC be successful in acquiring the hopper car fleet.
"We strongly believe that any changes to the existing system must empower farmers," Ritter said, describing the CWB's financial support of the FRCC as an investment in the long-term viability of farming in Western Canada.
The CWB has itself already appeared before the House of Commons Standing Committee on Agriculture and Agri-Food in support of the FRCC proposal and Ritter said he welcomed the opportunity to discuss this issue with other parliamentarians. "We want to ensure farmers' voices are heard when politicians and bureaucrats are making decisions that will directly impact their bottom line," Ritter said.
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 company sells grain to more than 70 countries and returns all sales revenue, less marketing costs, to Prairie farmers.
For more information, please contact:
Louise Waldman
Manager, Media Relations
Tel: (204) 983-3101
Cell: (204) 479-2451