SARM advocates for relief for Sask. grain farmers after poor harvest
SASKATOON -
The Saskatchewan Association of Rural Municipalities wants grain companies to work with farmers to reduce penalties and eliminate administration fees on the contracted but undelivered grain for this year.
“A lot of farmers simply don't have the grain this year due to the drought and with no "Act of God" clause in some of the contracts, prices have continued to climb and the cost to buyout those contracts is now substantially higher,” SARM President Ray Orb said in a news release.
Farmers are now faced with trying to buy back forward-priced contracts, which includes penalties and administration fees, on this grain, according to SARM.
The administrative fee is meant to deter growers from trying to get out of a contract when they actually have the physical grain in order to capture a slightly higher price.
“It is imperative that we stand united in supporting our farmers and SARM remains committed to ensuring a resolve to this issue,” Orb said.
“We are urging the Western Grain Elevator Association and its members to work with farmers struggling to pay penalties and administration fees on contracted but undelivered grain.”
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