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SASKATCHEWAN RECOMMENDS FEDERAL GOVERNMENT SELL GRAIN CARS TO PRODUCERS

Released on March 13, 1996

Highways and Transportation Minister Andy Renaud today said
Saskatchewan recommends the federal government sell its 13,000 grain
car hopper fleet to producers.

"It is clear federal policy is directing Canada into a market place
with greater reliance on competition. In today's environment producers
need as much leverage as possible. International shippers have said
producers need control of the grain car fleet to ensure market power,"
Renaud said.

Producer ownership of grain cars would give farmers negotiating power
in dealing with railways and grain companies. The benefits of improved
car utilization and allocation would then go to producers as opposed to
carriers or large shippers alone.

In anticipation of the federal government selling its grain car hopper
fleet, the province commissioned a report on grain car ownership and
allocation. The report concluded that putting control of the hopper
car fleet into producers' hands would improve producers' net income,
ensure market fairness, and support continuing efficiencies.

"The recent federal budget increased maximum freight rates by $0.75 per
tonne. Does this mean the federal government is raising the rates to
provide room for the railways to buy the cars?" Renaud said.

Currently a producer coalition is looking at potential ownership and
control of the federal grain car fleet. The coalition is comprised of
SARM, the Canadian Wheat Board Advisory Committee, Western Canadian
Wheat Growers, National Farmers Union, Keystone Agricultural Producers,
Saskatchewan Canola Growers, the Western Producer Car Group, Wild Rose
Agricultural Producers, Family Farm Foundation, the Alberta Pulse
Growers and Southern Rails Co-operative.

"I have never seen such broad consensus among farm groups. It must be
a critical producer issue to bring them together. Saskatchewan
recommends the grain cars be owned by producers. The federal
government must immediately start negotiating with the coalition to
finalize sale of the cars to producers," Renaud said.


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For more information, contact:

Bernie Churko
Assistant Deputy Minister
Highways and Transportation
Regina
Phone: (306) 787-4866

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