The Agricultural Producers Association of Saskatchewan (APAS) is expressing serious concern over the recent rail network disruptions that pose a severe threat to the province's grain producers.
The disruption not only cast a profound shadow of uncertainty over the operations and sustainability of Saskatchewan's grain producers but also impacts the timely delivery of essential machinery parts and a wide range of farm inputs and consumer products.
"This disruption is not just a logistical nightmare; it's a critical economic issue for Saskatchewan,” stated Ian Boxall, APAS president. “Producers rely on a functioning rail system to get their goods to the market.
"Without it, they are effectively left without a lifeline ... the Canadian grain industry, which saw exports worth $36.2 billion last year, is now facing direct losses of up to $50 million daily with Saskatchewan representing about 50 per cent, and no end in sight.”
APAS is calling upon the government to undertake immediate actions to secure the resumption of rail services, recognizing the crucial role transportation plays for the province’s economy and the wellbeing of its rural communities.
The rail network disruptions come at a time when the grain sector is already managing tight access to shipping as part of harvest operations. Now, grain elevators are rationing or no longer accepting deliveries, with repercussions being felt throughout the supply chain.
Industry estimates that primary elevators will reach storage capacity after about 10 to 12 days of producer deliveries. With no delivery opportunities available, farm families will face enormous pressures managing their finances and on farm grain storage to avoid significant economic losses.
"The real issue here is the domino effect these disruptions unleash, which can be catastrophic. Every day of work stoppage translates to weeks of recovery, magnifying the financial strain on farmers during a crucial time of the year,” Boxall continued.
"The strategic importance of rail transport in our industry cannot be overstated. We must ensure that grain receives the priority it deserves to avert economic risks to farmers, rural communities, and to prevent spoilage risks associated with delayed shipments.”
APAS is actively partnering with national and provincial farm groups to advocate for the grain sector to receive priority in shipping to reduce long-term spoilage risks, financial hardship on farmers, and protect Canada’s reputation as a reliable grain supplier.
These dual network disruptions highlight the fragility of our grain export system and the urgent need for resilient supply chain solutions.
