SASKATOON – The day that has been dreaded by some and longed for by others has finally arrived for prairie grain farmers.
The rail subsidy known as the Crow Benefit was officially laid to rest at midnight, July 31.
Now, no matter what their politics or philosophy, no matter where they live or what they grow, all prairie farmers face a future made more uncertain by the loss of the rail subsidy that has been around in one form or another for 98 years.
Exactly what it will mean for prairie agriculture is anybody’s guess. Those who have argued for an end to the subsidy say the changes will open doors to a more efficient rail system and more diversified farm economy.
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But others are skeptical and say the only sure thing is that farmers will pay a lot more money to ship their grain.
“There’s certainly a period of uncertainty that farmers will face in the coming months,” said Saskatchewan Wheat Pool president Leroy Larsen.
It’s all a little confusing and overwhelming for most farmers, says Leam Craig, who farms near Biggar, Sask.
“The details have been pretty sketchy,” he said. “I’m not really up to speed on it and I don’t think most of the farmers around here are either.”
One farmer who’s optimistic about the future is Warren Jolly, who farms at Mossbank, Sask., and serves as vice-president of the Western Canadian Wheat Growers Association.
While he’s concerned that farmers may not get the benefits of increased rail efficiencies as quickly as they should, and also worries about whether farmers who lose their rail lines will be adequately compensated, he also says the end of the export subsidy on raw grain shipments will help promote a more diversified farm economy.
“It’s not going to happen tomorrow, but over time there will definitely be more value-added industry,” he said.
Chris Tait of Rossendale, Man., doesn’t believe it will happen. The National Farmers Union vice-president says Aug. 1 was a sad day for prairie agriculture.
“It’s going to take some time for people to see what it means for their own operation and to see that the diversification and all the wonderful niche markets and things which are supposed to occur simply aren’t going to.”
The only things farmers can be sure of are higher freight rates and lower farm income, said Tait, adding he doesn’t think there’s much farmers can do to offset higher costs.
“I think farmers have jumped through every hoop that they can and I’m not sure there’s a lot of movement left to make.”
Richard Nordstrom of Viking, Alta., is confident that farmers will ship to higher valued crops and expand livestock production in response to the changes, pointing to new crushing plants and hog operations being developed across the Prairies.
