REGINA — Farmers who are thinking about buying a grain elevator should take a look at a new Saskat-chewan government study that documents the pros and cons of such a venture.
Commissioned by Saskatchewan Agriculture and Saskatchewan Economic and Co-operative Development, A Template for Purchase of a Wood Elevator is available on the internet at www.agr.gov.sk.ca/docs/
econ_farm_man/planning/woodelevator.pdf.
“We were aware that there are many communities and individuals who want to purchase elevators for numerous reasons,” said Eugene Bendig, Saskatchewan Agriculture’s industry development branch manager.
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“We thought we could save them time and money by identifying the issues that surround their purchase.”
Researching the report meant interviewing people who have been involved in buying grain elevators as well as railway companies, a major grain company, the Canadian Grain Commission, the Canadian Wheat Board, retired elevator agents, Saskatchewan Assessment Management Agency, Saskatchewan Municipal Affairs and Can-Seed Equipment.
The report looks at all aspects of an elevator purchase, including an overview of an elevator operation, estimated operational costs, legal agreements, licensing issues, transportation, future concerns, and potential sources of revenue.
“I don’t think there were any great surprises in the report,” Bendig said.
“One of its most valuable aspects is that it lists the issues and contact people for more information. We hope that those who want to purchase an elevator will consult with these contact people and receive some background on the issues.”
Bendig said that the report serves as a good starting point and has a checklist of factors to consider before proceeding.
It looks at potential revenue that can be generated from a commercial elevator operation, such as dockage removal, storage, seed cleaning, grain drying and the sale of bulk screenings. A financial statement is included so that possible revenue and expense scenarios can be discussed. The report also suggests alternate uses of the facility such as scale services, feed rolling operation, pellet plant, organic grains, and a heritage site.
“People never cease to amaze me with how inventive they can be,” he said.
“If we can provide the groundwork for them to develop their inventiveness, then we will have accomplished what we set out to do.”
