Farmers increasingly nervous about Saskatchewan Wheat Pool’s future took steps to protect themselves last week.
In some cases they moved grain out of condo storage and into primary elevator storage. Others moved their grain right out of pool facilities.
They picked up seed, fertilizer and chemicals. They wrung their hands about product they have paid for but can’t take home, like anhydrous ammonia.
It all made for more stress on both farmers and pool employees.
Will Hill, senior vice-president of the pool’s grain group, said many customers have been calling to ask if their grain is secure and what they should do about their inputs.
Read Also
Agriculture ministers agree to AgriStability changes
federal government proposed several months ago to increase the compensation rate from 80 to 90 per cent and double the maximum payment from $3 million to $6 million
He said it’s up to farmers to decide.
“Condo grain is not covered by the Canadian Grain Commission (CGC) bonds,” Hill said.
Farmers can move it to an elevator, another company’s elevator or take it home.
“Farmers are weighing those options. We haven’t seen any extreme behaviour on the part of producers.”
Jason Skinner at North West Terminal in Unity said Jan. 27 his facility had already received 10,000 bushels of canola from local pool outlets.
“I’ve had inquiries for up to 100,000 bu.,” he said.
Most farmers are concerned about not being covered by the CGC bond, he said.
Commission spokesperson Paul Graham said the bond does not cover grain in condo storage because condos are viewed as the equivalent of on-farm storage.
He said the grain commission is also getting calls from nervous farmers. The uncertainty surrounding Sask Pool follows problems with several other companies in the last year.
At the pool, Hill said grain delivered into the primary elevator is secure: “We’re fully funded on our bonds.”
Hill also said many farmers are picking up seed because it’s the normal course of business at this time of year.
Those unable to take home chemicals because they don’t have proper storage facilities are being given a bill of sale so that ownership is clear. The product is being segregated and stored in warehouses.
Still, Hill said it’s mostly business as usual at pool facilities.
“Our business is probably being more affected by cold weather.”
But the company understands farmers’ unease and employees are working to alleviate it, he added.
