In an effort to further advocate for Saskatchewan farmers who have seen production cut and herds culled due to this summer's drought, the Agricultural Producers of Saskatchewan have initiated a survey for farmers. The questionnaire intends to assess the impact of the dry weather on farmers and ranchers, particularly when it comes to experiences in grain companies in cases where production shortfalls may have affected contracted deliveries.   

“The extreme heat and lack of rainfall throughout the summer led to yields well below long-term production averages for many farmers and ranchers throughout Saskatchewan,” APAS President Todd Lewis said. “Many producers in the province won’t be able to fulfill their grain contracts, and that could result in farmers having to pay thousands of dollars to buy out their contracts. That will cripple a lot of producers in an already challenging season.” 

Because of the widespread nature of the drought, practices such as producers purchasing another farmer’s grain to fulfill obligations haven’t been an option. APAS notes the 2021 drought is widespread across Western Canada and has resulted in historically high grain market prices. Producers short on their contracts face substantial costs to buy out the contract in a rising market. 

“It’s been a tough year for Saskatchewan producers, and during these unprecedented events that we really notice the flaws in the system,” Lewis said. “APAS is committed to working on behalf of producers to improve the contract system. By working together, producers, grain companies, and governments can meet at the table and find a solution that results in these contracts being fair to all parties involved.” 

APAS and other producing organizations have already communicated concerns to the Western Grain Elevator Association. The producers have requests that grain companies eliminate administration fees and penalties in cases of contract shortfalls. 

To participate in the APAS grain contracts survey, click the link.