(CN.ca)

Ottawa to keep revenue cap on grain shipments by rail

Ottawa | Reuters — The Canadian government introduced draft legislation on grain transportation on Tuesday that would keep in place a revenue cap on western grain that railways haul for export. The grain revenue cap, or “maximum revenue entitlement” (MRE), has been in place since 2000 and is intended to balance the market power of



CN Rail vice-president of bulk commodities, Doug MacDonald, met with a group of farmers representing the Alberta Federation of Agriculture, Canadian Federation of Agriculture, Agricultural Producers Association of Saskatchewan and Keystone Agricultural Producers at the Port of Vancouver last week to discuss ways to improve the grain-handling and transportation system.

Prairie farm leaders meet CN Rail in Vancouver

It was an attempt to build bridges and ultimately improve grain shipping, but farmers remain unclear about the impact the MRE is having on car replacements

Prairie farm leaders praised CN Rail for agreeing to meet here last week to discuss ways to improve Western Canada’s grain-handling and transportation system. “I was impressed with the openness of CN,” Keystone Agricultural Producers (KAP) president Dan Mazier said in an interview (watch a video interview further down). “I think they were genuine today.”

University of Manitoba supply chain professor, Barry Prentice says the maximum revenue entitlement is bad for farmers as well as the railways.

MRE counterpoint claims system hurts everyone

VIDEO: Barry Prentice says the MRE is bad for western grain farmers and the railways

Western grain farmers and the railways would be better off if the maximum revenue entitlement (MRE) was scrapped, according to Barry Prentice, an agricultural economist and professor of supply chain management at the University of Manitoba. “Farmers may be losing more on (grain) prices (because Canada is seen as an unreliable supplier) than they ever


Grain shippers of all types are heralding promised changes to the transportation regulatory environment announced Nov. 3 by Transport Minister Marc Garneau.

Grain sector hails transport reform

But some farm groups worry about the future of the maximum revenue entitlement

Farm groups, grain shippers, crop processors and supply chain organizations are all praising Transport Minister Marc Garneau’s plan to make Canada’s grain transportation system more competitive. But some farm groups are uneasy about the future of the maximum revenue entitlement (MRE). Speaking to the Chamber of Commerce of Metropolitan Montreal Nov. 3 Garneau announced legislation

Scrapping maximum revenue entitlement will double farmers’ freight bill

Scrapping maximum revenue entitlement will double farmers’ freight bill

Agricultural economist Derek Brewin concludes the MRE works for farmers 
and the railways and has resulted in a more efficient system

Western Canadian farmers will pay the railways at least double what they do now to ship grain if the maximum revenue entitlement (MRE) is phased out as recommended in the Emerson Report. “The increase is somewhere between 100 and 150 per cent in real rates if we remove the MRE,” University of Manitoba agricultural economist


(CPR.ca)

Saskatchewan presses for rail interswitching, revenue cap

Farm stakeholder groups and Prairie provincial agriculture ministers got their chance Thursday to bring their concerns about grain transportation by rail to the federal minister responsible. Federal Transport Minister Marc Garneau and Agriculture Minister Lawrence MacAulay held a roundtable meeting with grain sector representatives Thursday in Saskatoon, and met also with the Prairies’ agriculture ministers.




(Dave Bedard photo)

Debate: Sask. ag leaders seek rail response

If there’s one thing all Saskatchewan’s political parties can agree on, it’s that the current rail system isn’t working for grain producers — but there’s less consensus on the solutions. Transportation is the single most important issue facing grain growers in Saskatchewan right now, said Cathy Sproule, the provincial New Democrats’ ag critic, during an