SASKATOON – Some of this year’s grain may have to pay next year’s freight rates, says agriculture minister Ralph Goodale.
Some grain delivered late in the current crop year won’t actually be shipped out of elevators until after Aug. 1, when freight rates will double to an average $30 a tonne.
In the case of Canadian Wheat Board grain, the additional $15 needed to ship that grain to export position will be taken out of the board’s 1994-95 pool accounts.
That means farmers’ 1994-95 returns will reflect the much higher 1995-96 freight rates.
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The wheat board and some farm groups say that’s not right. They want Ottawa to devise a plan to ensure farmers pay only this year’s freight rate on grain delivered into the commercial elevator system before July 31.
Goodale said last week that he is aware of the issue and government officials are looking at the “legal technicalities.”
But he also said farmers can’t escape the fact that at some point their freight rate will go up.
“I think the hard fact is probably that whatever date we might choose, there would be some straddling of the line,” he said. “I don’t think we can entirely eliminate that.”
He said one piece of good news is that carryover from this year to next is expected to be very low, which will minimize the impact of the freight increase on grain being held in inventory.
