One of the cheapest ways to get grain out of the Peace River region of northern Alberta is by truck, said a recent study on northern grain handling.
For farmers living south of Keg River, it is most economical to truck grain to Dawson Creek, B.C., where it is taken by rail to the port at Prince Rupert, B.C.
For farmers north of Keg River the cheapest transportation is to deliver to their nearest elevator, said the study.
The Prefeasibility Study of Grain Handling and Transportation Alternatives for the Peace Region had some surprises, said Allen Geary, senior northern development officer for the Northern Alberta Development Council.
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One of the surprises was the viability of hauling feed grain to central and southern Alberta feedlots, he said.
“It wasn’t in farmers way of thinking,” said Geary, who added the use of super B-train trucks to haul feed grain is even more feasible if farmers find a backhaul – a load to carry on their return trip.
“Maybe guys need to rethink what they’re growing,” he said.
The new concrete elevators won’t attract grain solely because of their location, but will have to offer competitive prices to draw grain away from Dawson Creek, Geary said.
“Once it gets on a truck it doesn’t make much difference to haul it another 50 miles.”
Nail down the cost
The study was commissioned to get solid evidence of grain hauling costs from the northern Alberta region, especially with branch lines and elevators closing.
Some area farmers experimented with trucking their grain all the way to Prince Rupert. It has been shown that with a 25 percent backhaul, trucking is cost effective from most communities. A 50 percent backhaul makes it the most effective method, but it’s difficult to get regular backhauls from the B.C. port.
The use of producer-leased rail cars loaded by producers is cost effective only for small amounts of grain.
The report is expected to be given to farmers, truck drivers and key industry players for further study.
