New Publication on Grain Transportation

Posted October 08, 1996


FOR IMMEDIATE RELEASE -- October 7, 1996
96-10-04-AG

New Publication on Grain Transportation

The Department of Agricultural Economics at the University of Saskatchewan has released a series of modules addressing the economics of the Western grain transportation and handling system.

The Western Canadian grain transportation system is a vital component of the marketing infrastructure for Prairie farmers, but it's been highly regulated. Critics of the regulated grain transportation system argue the efficiency of the current system could be significantly improved if deregulation was pursued more aggressively. Opponents to wide scale deregulation argue that farmers are vulnerable when shipping grain because little competition exists between Canada's two major railways and there are few viable grain shipment alternatives for farmers.

There are major changes going on in grain handling and transportation and if we are to come up with a system that is the best one for Canada, there has to be some discussion and coordination, said Professor Murray Fulton. Currently, decisions are made through legislation or by businesses. There needs to be some coordination.

The issue of how to best re-regulate the western grain transportation system is highly complex and not well understood. The complexity lies with the fact that the many components of the system are highly interrelated and are also dependent on the institutional structure of the entire western grain marketing system. Despite this complexity, policy makers are now being asked to make decisions concerning grain transportation that are likely to have major impacts on farmers, grain companies, the railways and other active participants in the industry.

The modules are meant for anyone who really wants to understand what's going on in transportation including leaders of farm organizations and individual farmers. They ask a series of related questions and then answer them, one question at a time. Examples of the questions being asked include: What is the logic behind the CWB basis changes? Why are railways no longer offering incentive rates? What role does grading play in grain handling? Why do elevators offer trucking premiums? How do U.S. rail rates compare with Canadian rates?

For more information, please contact:

Professor Murray Fulton
Department of Agricultural Economics
University of Saskatchewan
(306) 966-8507