Saskatchewan municipalities say grain companies should give local people a chance to buy elevators slated for demolition.
The presidents of the rural and urban municipalities associations have invited grain companies to a meeting in Regina Nov. 6. They want to establish a process similar to what the railroads must use when they want to abandon a line.
“The elevators, we feel, were put there with Saskatchewan money, whether it was derived from profits made in Saskatchewan or direct contributions by farmers at some point in time in our history,” said Sinclair Harrison, president of the Saskatchewan Association of Rural Municipalities.
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He suggested local groups or communities could buy an elevator for net salvage value. In some cases, he said, that could be $1.
Mike Badham, president of the Saskatchewan Urban Municipalities Association, said small villages suffer when elevators are demolished and the tax revenue is gone.
“We’re not saying ‘don’t close,’ ” Badham said. “We’re saying ‘allow someone else’ if there is a market for someone to do that.”
But at least one grain company said that wouldn’t make sense from a business point of view.
Saskatchewan Wheat Pool is closing 235 elevators over the next three years. Vice-president Marvin Wiens said the pool has substantial investments in new facilities and allowing a competitor to buy and use the old facilities would not be a good business decision.
“There may be cases where those facilities could be used,” he conceded. “But … you can’t be held ransom to have those discussions. They have to be business decisions.”
Representatives of the other major grain companies operating in Saskatchewan could not be reached for comment by press time.
Highways minister Judy Bradley supported the call from SARM and SUMA. She said the province would help by getting grain companies and local groups to discuss options. The province has also been invited to the Nov. 6 meeting.
The Saskatchewan Party, in releasing its election platform, said there should be a 180-day moratorium on demolition of closed elevators. Agriculture critic Bob Bjornerud said the facilities could be used for specialty crops or as cleaning plants.
“It’s time someone has to step in and say let’s have a little breathing period here and give people the opportunity to buy these facilities,” he said.
Meanwhile, the Western Grain Elevator Association issued a news release saying rationalization and consolidation must move forward quickly. The association said grain companies must build new larger facilities in strategic locations and close smaller facilities on low volume lines.
“We cannot afford to watch the world in our rear view mirror,” said executive director Ed Guest.
