Agriculture Minister Lyle Stewart has written to all financial institutions in Saskatchewan to urge them to be flexible with their agriculture clients facing cash flow issues due to the slow movement of grain this winter.
“Last year’s record crop production is testing the limits of the grain handling and transportation system and causing cash flow concerns for farmers,” Stewart said. “I encourage financial institutions to work with producers regarding cash flow requirements and be flexible with loan repayments.”
In 2013, Saskatchewan producers harvested a record crop of 38.4 million tonnes; however, due to factors beyond their control, producers have been unable to ship much of this crop and are now facing historically wide basis levels. Therefore, the province is asking financial institutions to proactively work with producers to review all of their financial options.
The Government of Saskatchewan recently passed a unanimous motion in the Legislative Assembly supporting the federal government introducing emergency legislation to address the grain transportation backlog. The provincial government will continue to work with the federal government, railways and grain companies to resolve the situation. Ensuring the timely and efficient movement of grain through the system is crucial to the agriculture industry’s long-term success and the province’s reputation as a reliable supplier of agriculture products.