The issue of licensing facilities that load producer cars with grain as primary elevators was one of the hottest topics of discussion at a meeting held to discuss the problems faced by farmers who use producer cars.

The meeting was held in Regina on Nov. 30, and was attended by over 300 people, including representatives from Red Coat Road and Rail, whose primary business is loading producers cars on a rail line no longer serviced by grain elevators.

Lonny McKague, a board director for Red Coat Road and Rail, attended the meeting and felt the main issues faced by those using producer cars were fairly dealt with in the discussions.

Much of the anger in the crowd was directed at the Canadian Grain Commission, which is legislated to administer producer cars in Canada. One producer earned applause by suggesting that Saskatchewan's representative and chairman of the CGC, Barry Senft, should resign because producers feel he isn't representing Saskatchewan farmers' concerns to the CGC.

The crux of the licensing issue was raised by the West Central Road and Rail, over the Grain Commission's request that they licence a new $2 million grain-loading facility they built to load producer cars.

McKague said this issue affects them as well, as there are a couple of facilities on their rail line that could end up having to be licensed. Initially, the West Central group had a pilot project for two years, which included representation from the Grain Commission, and at no time did they tell the producers they would need to licence the facility.

"They do not buy any grain, they only transfer the grain to a rail car, and they are not a primary elevator," said McKague, adding that once a facility is licensed as a primary elevator, the legislation will not allow that facility to load producer cars.

"The Grain Commission is having a hard time distinguishing between the two. The truth is there is no difference. A hundred farmers owning 25 bins or two farmers owning one bin are doing the same function. There's no difference between them," he said.

Some members of West Central told the meeting they felt the Grain Commission received undue pressure from grain companies, but McKague noted this was their own opinion.

The meeting included a number of panels on various issues, and had representation from much of the grain transportation industry, including Omnitrax, Prairie Alliance and CN Rail, as well as the CGC and Canadian Wheat Board.

Another issue was that of the security of rail car supply; for Red Coat, there have been relatively few problems with getting enough rail cars for their needs.

"It seems to be working very well. We don't get them 100 per cent of the time, but if there are cars available within reason, producer cars do get their allocation," said McKague.

On a more negative note, he said, the feeling was expressed by many producers that grain companies in Saskatchewan are opposed to farmers using producer cars.

"If I took anything from the meeting, the farmers feel that grain companies should do their business and not be against us. If we can do our business and return more money to the farmer, we need them to get out of our way," said McKague, adding Red Coat members definitely make money by loading their own producer cars. He estimated that a producer loaded at Ogema would see a return of $1,000 over hauling that grain to Weyburn.

Red Coat Road and Rail held its annual meeting on Wednesday night in Pangman, and elected Kevin Klemenz of Horizon as the new president. Roger Dahl of Viceroy and Ed Howse of Pangman round out the executive. Two directors were re-elected to new three-year terms, including McKague and Tom Webb of Pangman.