The Saskatchewan Association of Rural Municipalities (SARM) is calling on grain companies to lessen penalties and axe admin fees on contracted but undelivered grain for this year.
They released a statement on Monday afternoon in regards to the majority of farmers not being able to meet their grain contracts this year due to severe drought throughout most of the province.
"We need the grain companies to work with farmers on this issue," said SARM President Ray Orb. "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 buy out those contracts is now substantially higher."
Admin fees are used by grain companies to hold farmers accountable for previously signed contracts when producers try to back out of the deal to sell their product elsewhere for more. However, most producers don't have the grain, to begin with after such a tough harvest this year.
"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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