Farmers will soon be able to read a blueprint telling them how to build a new and cheaper system to move their grain to market.
A coalition of farmers, short-line rail proponents and grain agencies that has been working for almost two years on the Grain Logistics Pilot Project is preparing to release its report this spring.
The idea is to provide farmers and community group. with a practical, how-to guide to setting up their own grain collection and shipping system.
Those involved say the plan will let farmers put significantly more money into their own pockets rather than the grain handling companies’.
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“It will provide a competitive option to the grain companies,” said Rob Lobdell, a member of the project’s steering committee.
“It’s an alternative that puts more control in the hands of farmers.
Lobdell, president of West Central Road and Rail Ltd., said farmers can work together to ship large volumes of grain without spending $18 million to build a concrete elevator, thus reducing total system costs.
The grain would be shipped in producer cars from locally owned loading or handling facilities along short-line rail tracks.
“We’re kind of excited about it, but I wouldn’t want to pass it off as a silver bullet,” said committee chair Terry Meaden, a farmer from Beechy, Sask.
Using money from the federal and Saskatchewan governments, the committee has been working with the Canadian Wheat Board and Canadian Grain Commission.
While finishing touches still need to be put on the plan, here is roughly how it would work:
- The CGC would grade the grain on the farm following harvest, providing detailed quantity and quality information.
- A computer program would provide information on how to blend that grain to meet customer demands and maximize farmers’ returns.
- The local group would work with the wheat board on a “just-in-time” delivery plan to bring grain into the system as needed.
- The grain would then be physically blended when loaded into producer cars or upon arriving at export position.
Remove advantage
Farmers have always been able to save money by using producer cars to avoid handling fees, but grain handling companies have been able to offset that by offering deals through blending. This plan could eliminate that competitive advantage for the elevators, Meaden said.
He said the system won’t be of much interest to a farmer who lives near a big concrete facility, but for a farmer in his position – more than 100 kilometres from the nearest elevator – it holds a lot of promise.
The steering committee included representatives from the wheat board, the grain commission, West Central Road and Rail and a short-line group from Golden Prairie, Sask.
Wheat board spokesperson Justin Kohlman said the agency has been advising the group on how to arrange grain shipments.
He said the board wants to help farmers looking for innovative, less expensive ways to ship grain.
“If it help. farmers get access to the system in a cost efficient way, that’s our only priority.”
West Central hopes to use the blueprint if it can raise enough money from farmers to build grain collection and loading facilities on the local rail line.
