The Western Grain Elevator Association (WGEA) is responding to calls from a number of Saskatchewan grower groups to intervene with the grain companies.
At issue is the impact of the drought and the problem farmers have to face in trying to buy back forward priced contracts, penalties and administration fees on any contracted but undelivered grain.
Wade Sobkowich is Executive Director of the WGEA and says they can't interfere or mandate what the grain companies do, as it would be viewed as being anti-competitive.
He notes like farmers grain companies have also forward contracted that grain to millers, as well as domestic and international buyers.
"You know, when I'm talking to grain company representatives, they are stressed about this. They are trying to figure out how to do right by the farmer, and do right by themselves. You know, they're in a real bind. At the end of the day, there is a contract that they're going back to, and saying we have to figure out how to execute on this, because we can't be left holding the bag either. So how are we going to solve our problem, and solve the farmers problem at the same time. You know, they're trying to do that right now, and there aren't easy answers to that question."
He says each grain company wants to be the one to get that farmers grain and not be the one to offer the buyback.
"So that motivates the grain companies to be a bit tough when it comes to determining whether that farmer truly can't satisfy the contract and they truly don't have the tonnes. Or it would be more accurate to say that they've contracted out of their comfort level versus contracted out of their production."
Sobkowich encourages farmers to reach out and start discussions as soon as they can with their grain buyer as each situation is different.
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