Grainswest - Fall 2024

Fall 2024 grainswest.com 47 BY KYLE LARKIN How Canada’s rail disruptions squeeze grain farmers Strikeout POLICY PLACE THE RECENT WORK STOPPAGES AT Canada’s national railways yet again un- derscore a hard truth that Canadian grain farmers have grappled with for years: our transportation network is fragile and disruptions are all too frequent. This latest example isn’t an isolated incident but part of a broader pattern that has severely test- ed the resilience of our country’s agricul- tural supply chains. From rail blockades to port strikes to work stoppages, these disruptions con- sistently hamper the ability of farmers to move grain from farm to port, and ultimately, to international buyers. Un- fortunately, the latest stoppages continue this trend. In 2020, rail blockades set off by politi- cal tensions disrupted rail services across Canada. Grain shipments stalled when global demand was high. In 2021, the in- dustry faced further setbacks when work stoppages at key ports delayed exports and created significant backlogs. Most re- cently, in 2023, grain farmers endured yet another hit when port workers went on strike, which halted operations as harvest ramped up. The impact of these disruptions is dev- astating for farmers. Grain is a time-sensi- tive product; delays in transport affect its quality and can cause missed sales oppor- tunities and significant financial losses. During the peak of harvest, each day grain doesn’t move through the supply chain is a loss of more than $50 million in exports. These delays compound, and it can take weeks or months for supply chains to recover and eliminate the backlog. When our rail or port systems are interrupted, the consequences ripple through the agri- cultural sector and beyond. Grain farmers are at the mercy of Canada’s rail networks. No efficient or cost-effective alternative transport methods are available when the system goes down. Trucks simply can’t handle the volume of grain produced across the country. At har- vest time last year, Canadian port termi- nals received the equivalent of 10 full trains a day, which is equal to more than 11,000 semitrailer trucks. The only realistic option is to wait out the rail stoppage and subse- quent recovery of service. But recovery is slow and uncertain, leaving farmers little choice but to absorb delays and hope they don’t miss crucial export windows. Meanwhile, our southern neighbours provide a stark contrast. The United States has had only one rail strike in the past 100 years, which demonstrates a much more stable transportation environment. This comparison is frustrating for Canadian farmers. The agricultural industry is already subject to many uncontrollable factors: weather, market fluctuations and input costs, to name a few. Transportation delays and disruptions are the last thing they need added to the list, yet they are a recurring challenge. The aftermath of the dual work stop- page continues to unfold. Grain backlogs have piled up to create bottlenecks at every stage of the supply chain. We believe the situation calls for immediate, long- term solutions. It’s clear we need stronger safeguards to ensure essential services such as rail transportation remain oper- ational at critical moments, even amid labour disputes. The federal government must work to ensure reliable access to rail and port services, particularly for agricul- ture, which heavily depends on them. These continued disruptions highlight just how critical a reliable rail network is to the grain industry. The system must be built to withstand the challenges we face and prevent them from becoming the norm. The future of Canadian farming depends upon it. Now, more than ever, we need government leadership to find and implement long-term solutions. Kyle Larkin is the executive director of GGC. Grain backlogs have piled up to create bottlenecks at every stage of the supply chain.