Unprecedented Rail Disruption to Significantly Impact Canola Farmers

As canola farmers head out to begin harvesting their crops, Canada's two railways are set to halt all operations, crippling grain movement and severely restricting farmers' ability to market those crops. Canadian Canola Growers Association (CCGA), along with other groups, is calling on the government to take steps that would limit the impact on farmers, the nation's economy, and Canada's global reputation. 

“Concurrent labour disputes at both CN and CPKC are unprecedented, and farmers are already experiencing a slowdown in grain deliveries even before a strike or lockout takes effect," says Roger Chevraux, Chair of CCGA. “We face weather risk and market disruptions, but a complete shutdown of our grain handling infrastructure is an avoidable risk that farmers should not be dealing with at harvest."

Without rail service, the grain handling system quickly backs up. Elevators and canola processing plants reach capacity and stop accepting grain deliveries and, in turn, farmers lose the ability to sell their canola and manage their business cash flow needs. Beyond the farmgate, these disruptions negatively impact Canadian agriculture's ability to supply international customers and erode Canada's reputation as a reliable supplier in the global market. 

Research shows that the daily flow of grains and oilseeds through Canada's rail system is valued at over $43 million per day in August, rising to more than $50 million per day in September. “These numbers show how significant the negative economic impact to farms will be," says Rick White, President & CEO at CCGA. “A strike on one railway is a crisis. A strike on both railways is unfathomable and is sure to damage Canadian farmers' livelihoods." 

 CCGA has sent a letter to Steven MacKinnon, Minister of Labour and Seniors, highlighting the seriousness of the situation and asking for immediate action to resolve it. In addition, StopTheStrike, an information and letter writing campaign initiated by agriculture groups, urges Minister MacKinnon to use section 107 of the Canadian Labour Code to help the parties reach an agreement under binding arbitration and suspend the ability for lockouts or strikes pending an agreement.