Because of the grain transportation crisis, the provincial government is urging financial institutions to be “flexible with their agriculture clients,” according to a government release.
“Last year’s record crop production is testing the limits of the grain handling and transportation system and causing cash flow concerns for farmers,” said Agriculture Minister Lyle Stewart in the release. “I encourage financial institutions to work with producers regarding cash flow requirements and be flexible with loan repayments.”
On Monday, the government unanimously passed a motion to encourage the federal government to introduce emergency law to address the grain transportation backlog.
The release added the provincial government will continue working with railways, grain companies and the federal government for a solution to ensure the success of the industry.
The release said producers in Saskatchewan harvested 38.4 million tones of crop in 2013.
“Due to factors beyond their control, producers have been unable to ship much of this crop and are now facing historically wide basis levels,” it said. “Therefore, the province is asking financial institutions to proactively work with producers to review all of their financial options.”
For an updated story, go here.