The Ontario Federation of Agriculture (OFA) is deeply concerned regarding the ongoing Canadian rail stoppage situation and the severe impact on our economy, farm businesses, and agri-food exports if prolonged.
While we are grateful for the federal government for stepping in and promptly taking the appropriate steps toward resolving the rail stoppage, we hope further action and negotiations can occur over the next few days that will see trains get back on rails and delivering agri-food products across the country.
Rail transportation is critical to the timely supply of farm inputs such as fertilizer, reliable energy sources such as propane, and delivery of farm products throughout Canada and to international ports.
Canada moves over 95% of its grain and 75% of its fertilizer by rail. A disruption has the potential to compromise the quality of our grain and lead to significant financial losses for farmers.
Moreover, rail accounts for the transport of $380 billion worth of goods annually, including a significant portion of Canada’s exports with trade partners. A prolonged strike could lead to increased transportation costs, a congested transportation corridor due to an increase in trucking and hauling of goods, commuter traffic in high density areas and disruptions in accessing markets.
The OFA encourages all parties involved in the negotiations to find a resolution that is fair and equitable. We hope a long-term solution can be reached that showcase to others around the globe that Canadian rail is a reliable and dependable option for the moving of agri-food products.