Wheat Board Questions and Answers, 1979

From March/April Grain Matters Letter

Q. What is the Canadian Wheat Board's feeling about using trucks to haul grain over the mountains to the West Coast?

A. Because of the comparative costs involved, the bulk of the grain moved over long distances in this country will continue to be shipped by rail for many years to come. However, individual companies may find it appropriate to move small quantities by truck from time to time.

Q. Why would the Wheat Board sell out their interest in Prince Rupert after the new storage gets going and starts turning a profit?

A. The Wheat Board is basically a marketing organization. We would feel grain handling is best left in the hands of those already involved in the field.

Q. If vessels arrived late at Vancouver, are they subject to charge?

A. Vessels have within a 15-day time span (call period) to appear at the port. If a vessel arrives after the last day of the call period. The Wheat Board assesses the export agent punitive carrying charges. The rates applied are as follows:

first 10 days - 1/15¢ per bushel per day

second 10 days - 1/10¢ per bushel per day

beyond 20 days - 1/5¢ per bushel per day.

Q. Is the Wheat Board responsible for demurrage on rapeseed? If not, who pays it?

A. Demurrage for all non-Board grains (rye, flaxseed and rapeseed) is the responsibility of the grain company or export agency supplying it to the customer. The Wheat Board is only responsible for demurrage on wheat, oats, durum or barley for export.

Q. Will the railways pay farmers rent to use the 2,000 new hopped cars?

A. No. However, they will be responsible for maintenance. If the Wheat Board authorizes use of the cars in Eastern Canada for movement of Prairie grain, there are provisions for a negotiated mileage charge as a rental fee.

Q. Is our soft dollar selling more wheat for us or are consumption trends the more important factor for Canadian sales?

A. It's a combination of both. Since April 1977, the Canadian dollar has weakened by as much as 35% in relation to the Japanese yen and 15% in relation to the West German mark. This has undoubtedly encouraged buyers to purchase more now while foreign exchange rates are still favorable. On the other hand, international trade has been climbing steadily over the last 20 years and is expected to reach 85 million tonnes by 1985.

Q. Is it possible to export grain without using the Canadian Wheat Board?

A. All wheat, oats and barely for export must go through the Canadian Wheat Board. Rye, flaxseed and rapeseed can be sold by a grain trading company for export without Wheat Board involvement. However, they have to arrange rail shipping with the Board's Transportation division.

Q. Has the Wheat Board considered paying storage costs to farmers how have stockpiled their grain on the farm because of low quotas?

A. It would be possible to finance storage costs to individual farmers through the pool accounts. However, under such a system, we would only be taking money from one farmer and giving it to another.

A proposal has been made by the Quota Review Committee suggesting the federal government should provide storage assistance to farmers. However, if federal finances are available, we would prefer to see them go towards improvements in handling and the transportation system. This would reduce storage needs and provide more income in farmers' pockets.

Q. Please explain the funding of the 2,000 Canadian Wheat Board hoppers.

A. A final decision hasn't been made yet. There are a number of possible ways to do this. One is to apply costs to the Wheat Board pool account over a number of years until the cars, together with the interest and depreciation costs, are paid. However, other methods of financing are being looked at to see if a more economical way can be found.

Q. You say boxcars for grain are going out of service at a rate of 1,800 per year. Why aren't they being repaired?

A. The railways say it's not economical for them to do it. To encourage rehabilitation, the federal government offered to pay 50% of the costs in order to get some of these cars back in service. As a result, Canadian National Railways and Canadian Pacific Railways are now rebuilding 1,000 boxcars each. The CNR has offered to rebuild a second 1,000 boxcars but federal government funding for this has not yet been approved by the Treasury Board in Ottawa.

Other articles from the June 13, 1979 issue of the Signal:

Return to the Politics Menu
or back to the Smoky Lake History Archive