GRAIN LOGISTICS INITIATIVE PAYING DIVIDENDS TO FARMERS

Released on October 6, 2003

Saskatchewan's efforts to promote the use of producer cars and to improve the efficiency of producer car loading facilities is estimated to save grain producers over $10 million in the 2003-04 crop year.

"Since 1998 we have been working with producers to develop new and innovative ways to improve our grain handling and transportation system," Minister Responsible for the Saskatchewan Grain Car Corporation (SGCC) Mark Wartman said. "We are seeing the benefits of these efforts through significantly reduced costs to farmers."

In the first nine weeks of the crop year, 807 producer cars have been shipped and orders for 3,535 more have been taken. Current projections for this crop year indicate producers will load over 10,000 producer cars, up almost 200 per cent from last year and 43 per cent from the 2001-02 crop year. Saskatchewan farmers order approximately 75 per cent of all producer cars.

Since 1895 producers have had the option of bypassing the primary elevator system by ordering and loading their own grain cars. The popularity of producer cars has grown in recent years, as producers look for ways to become more efficient and reduce operating costs.

To accommodate growing interest, SGCC has been working with local farm groups across Saskatchewan to make producer car loading convenient for producers and efficient for railways.

"For some farmers loading producer cars is the preferred option for getting their grain to market. The remaining farmers prefer to use existing grain handling facilities just as they have in the past," Wartman said. "In either case the grain handling system has become more efficient and less costly for farmers as a result of the increased competition."

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For More Information, Contact:

Bernie Churko Saskatchewan Grain Car Corporation Regina Phone: (306)787-4866