Promoting Canadian Oats

A delicious cookie packed with flavour and high on crunch.

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Minister Ritz announced the receipt of the Crop Logistics Working Group report in Winnipeg this morning. POGA President, Art Enns, was one of the few people asked to participate in this group making sure that farmers voices are being heard with the rail concerns that still plague Canadian Agriculture.

Read the full report: Crop Logistics Working Group III Maximum Revenue Entitlement (MRE) Subcommittee Report of Findings (PDF 438KB)
Read the submission: Crop Logistics Working Group Submission to the CTA Review (PDF 332KB)

Canada’s grain, oilseed and special crop farmers critically rely on rail transportation. Every order for a grain hopper car counts. In a complex supply chain, spanning an average of 1,520 kilometres, the ability of the railways to get agricultural products to an export position is crucial to every player in the value chain – especially to the farmer.

Rail is the most economical and efficient way to ship bulk grain. Unfortunately, Canada’s rail system is not consistent nor reliable and has not proven to be adept at handling the grain industry’s growth. For example, 2013’s record-breaking harvest should have resulted in a positive outcome for the grain industry, but subsequent poor rail performance threatened our reputation as a reliable supplier of quality products, and compromised the livelihoods of farmers and the growth of the Canadian economy.

In addition to the MOGA AGM, there will be an additional session dedicated to oats at the CropConnect Conference.

Location: Victoria Inn Hotel and Convention Centre, Winnipeg, MB
Date: Thursday, February 11, 2016
(As part of the CropConnect Conference)

The Maximum Revenue Entitlement (MRE), often referred to as the “revenue cap”, has been in effect since August 1, 2000. It is a dynamic and elastic regulation that ensures the two major railways derive a profit and are compensated for their investments related to transporting Western Canadian grains to export positions. The complicated nature of the MRE causes a great deal of misunderstanding about how it works and perpetuates a number of misconceptions about rail service in Canada. Below we set the record straight on the MRE.

Myth 1: The MRE sets a fixed shipping rate for grain shipped to a port
This is not the case. In fact, railways can apply differential rates to regulated grain movement as long as the overall ‘average’ revenue per tonne, as established under the MRE, is not exceeded. It is proportional, in that the more grain moved, the more revenue earned. In the 2013-14 crop year, the two major railways moved almost 38.5 million tonnes of regulated grain, with an average haul of 1,520 kilometres earning them $33.69 per tonne for a combined revenue of almost $1.3 billion.

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