As harvest season begins, farmers across Manitoba are bracing for a potential rail stoppage that would have a cascading effect on the production, storage and transportation of grain across Canada.
The country's two major railway lines —Canadian National Railway (CN) and Canadian Pacific Kansas City (CPKC) — are on the verge of locking out thousands of workers beginning Thursday, while the union says it is ready to call a strike for that day.
On Wednesday, Prime Minister Justin Trudeau and Finance Minister Chrystia Freeland each urged the two sides, embroiled in tense labour negotiations, to reach a deal, saying a massive rail shutdown would sabotage the country's economy.
Western Canadian Wheat Growers Association president Gunter Jochum, who farms more than 2,400 hectares (about 6,000 acres) with his brother-in-law just west of Winnipeg, said he's feeling anxious and stressed about the economic impact a rail stoppage would cause.
"This will shut down not just agriculture, but the whole economy — everybody will feel it," Jochum said, as he took a break Wednesday from harvesting his wheat crop.
Farmers in the Prairies rely heavily on being able to haul their products to grain elevators so they can get paid, but if elevators reach full capacity because there are no trains to move the goods, farmers will likely store their products on the ground and suffer financially, Jochum said.
"We have huge bills from growing this crop that we need to pay here in the fall," he said, adding farmers can spend between $300 to $400 to grow an acre. "It's a catastrophe unfolding."
Jochum said he's spoken with people at two elevators near his fields who say their elevators could fill up within a week once more farmers begin harvesting.
While farmers will suffer, the elevators will be penalized themselves for not delivering the products on time to their customers overseas, he said.
Peter Flengeris, communications manager for Viterra Canada, said a rail stoppage would have an "immediate and severe impact" on the agriculture sector's ability to serve its global customers. It would also damage the industry's reputation as a reliable supplier.
"It will add to the multiple and substantial challenges the grain industry has already faced over the last several years, including drought, multiple extreme weather events and previous labour disruptions," Flengeris said in an email.
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