Status of Policy Issue: Grain Contracts

2021 was an unprecedented time for agriculture in Saskatchewan. As the growing season progressed, the effects of the drought became apparent. Specific areas of concern included grain contract penalties and administrative fees.

Administration fees deter farmers from cancelling contracts when they have the grain but want to take advantage of a higher cash price. However, when the farmer has no grain to sell, the deterrent is ineffective. For some, the financial implications of the drought were devastating, and these penalties add insult to injury.

Actions taken:

• SaskCanola conveyed the serious implications of drought conditions for grain and livestock producers to the provincial ministry and other levels of governments, as well as stakeholders in the grain industry.

• Through CCGA, and in collaboration with our provincial crop groups, SaskCanola communicated with the Western Grain Elevator Association and the Canadian Oilseed Processors Association about the implications of short supply on contract fulfillment subsequent impacts to the value-added sector.

• CCGA, along with the Grain Growers of Canada, supported the Canadian Cattleman’s Association request for temporary but immediate drought related actions on crop insurance.

• Grower organizations, including APAS, SaskBarley, SaskCanola, SaskFlax, SaskOats, Saskatchewan Pulse Growers, and SaskWheat urged the Western Grain Elevator Association (WGEA) and its members to work with farmers and eliminate administration fees and penalties for the 2021-2022 growing season. Click here to read the July 5, 2021 news release.

Looking forward:

SaskCanola will work with the provincial and federal governments to make contracts more fair to producers.

SaskCanola will support efforts to inform producers of their rights and responsibilities with regards to grain contracts.

July 11, 2022 SaskCrops News Release: Grain contracts “heavily tilted” in favour of buyers, according to new report