SASKATOON – The coalition of farm groups that wants to buy the federal government’s 13,000 hopper cars says the next move is up to Ottawa.
Following a two-day meeting in Regina last week, the coalition sent its proposal to agriculture minister Ralph Goodale and transport minister David Anderson and asked for a meeting to discuss the issue before the federal budget is handed down.
“We went as far as we thought we possibly could,” said Sinclair Harrison, president of the Saskat-chewan Association of Rural Municipalities and chair of the 10-member coalition.
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The group is proposing that a trust be established to own and manage the cars on behalf of Western Canadian farmers. It would be run by a board of directors elected by farmers. Group members say that would give farmers a direct influence on crucial transportation issues.
The proposal also sets out objectives and principles: That all 13,000 cars be sold together; that they be operated as a common fleet; and that the first priority in use will be moving Western Canadian agricultural products.
But coalition members say until they know the selling price for the cars, they can’t take the next logical step and develop a business plan or arrange financing.
Share profits
A group of senior grain industry officials has proposed to Ottawa that the cars be sold to the railways for $100 million in return for a cap on freight rates and sharing of railway profits.
Analysts have estimated their market value at $300-$400 million but the coalition says it shouldn’t have to pay that much.
“It would be unfair for farmers to be charged more for the hopper cars than the $100 million asked of the railways,” said National Farmers Union president Nettie Wiebe.
A number of lending institutions and financial agencies have said they are interested in financing a car purchase, although Harrison admitted the higher the price, the more difficult financing becomes.
Not discouraged
Members of the coalition say they’re encouraged that the federal government hasn’t told them to abandon their efforts.
“We haven’t had any indication that we’re not on-line,” said Ken Mannle of the Saskatchewan Canola Growers Association. “As far as we can tell, we’re doing the right thing until we get told otherwise.”
The coalition has brought together a variety of farm groups with quite different long-term views about the grain handling and transportation system, especially on issues like deregulation, car allocation and the role of the Canadian Wheat Board in transportation.
Those differences have been set aside, and a member of one of the groups involved says that reflects the groundswell of opinion among farmers that they should own the cars.
“All the groups are there because they’ve been told by the grassroots to be there and bargain this thing through,” said Mike Halyk of the Canadian Wheat Board advisory committee.
The coalition is made up of SARM, the NFU, the Saskatchewan canola growers, the CWB advisory committee, the Western Canadian Wheat Growers Association, the Western Producer Car Group, Keystone Agricultural Producers, Southern Rails Co-operative, Wild Rose Agricultural Producers and the Family Farm Foundation.
