KAP News & Media

KAP News and Media

News Releases


July 26, 2013

KAP objects to fine print of Fair Rail Freight Service Act

Keystone Agricultural Producers passed a resolution at its summer General Council yesterday to lobby the federal government for changes to the Fair Rail Freight Service Act that was passed just last month.

KAP applauded the legislation when it was announced because it requires CN and CP to enter into a service level agreement at the request of a shipper, where previously there was nothing like this in existence. However, there is one detail that worries KAP members and leaders alike.

“If the railways violate the service level agreement, there is a penalty imposed at the discretion of the Canadian Transportation Agency – but this penalty goes to the federal government instead of to the shipper as compensation for economic loss,” explained KAP president Doug Chorney.

“Before the legislation came into effect, the rail companies could charge penalties to the shippers if grain was slow to be loaded – and they kept these penalties,” he said. “But now the penalty money must go to the government – and grain shippers still have no recourse for compensation if poor service causes them to lose money, despite the well-intentioned legislation.”

Other resolutions passed at KAP General Council

  • Request the Government of Canada to allow deferral of income from the forced sale of all classes of livestock.
  • Petition the Government of Manitoba and the Government of Canada to hold consultations with general farm organizations and commodity groups before any government agricultural programs are terminated or altered.
  • Petition the Government of Manitoba and the Government of Canada to improve the Disaster Financial Assistance program so that it delivers assistance as soon as needed.
  • Hold discussions with the Government of Manitoba, the Association of Manitoba Municipalities, and the Manitoba Conservation Districts Association on drainage strategies and general water management issues.
  • Approach the Manitoba Agricultural Services Corporation to allow as insurable all canola stands that are proven established up to crop insurance standards, regardless of the seeding method used.

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For more information, please contact:
Doug Chorney, president: 204-785-3626.
Val Ominski, communications co-ordinator: 204-697-1140.

Keystone Agricultural Producers, Manitoba’s largest general farm policy organization, represents the interests of all Manitoba farmers.