Latest news with #BillPrybylski
CTV News
4 days ago
- Business
- CTV News
Sask. industry leaders join first ministers in calls for pipeline, railway investment to boost trade
Saskatchewan Premier Scott Moe says pipelines are paramount to diversifying trade, along with investments in rail and ports. Allison Bamford has more. SASKATOON, SASK. — As Canadian politicians gathered in Saskatoon for the first ministers' meeting, some industry leaders are calling for infrastructure investment to help get product to market. New pipelines and improvements to railways and ports would help producers increase cash flow, according to Bill Prybylski, farmer and president of the Agricultural Producers Association of Saskatchewan. 'Grain movement has been slow,' Prybylski told CTV News. If grain isn't delivered, farmers don't get paid, which can cause cash flow issues at a very critical time in seeding. 'There's a lot of cash going into the ground and producers need inputs now,' Prybylski said. Like other industry leaders, Prybylski believes overcapacity demands on railways could be partly resolved if oil was transported through pipelines, rather than freight. Potash companies have been advocating for similar investments. 'Our entire infrastructure system is congested,' said Marnel Jones, director of Government and Public Affairs for The Mosaic Company in Canada. 'Right now, we just need to be thinking in a bigger way about how we use our entire supply chain more efficiently, and that includes getting oil into pipelines and potash and wheat into railcars so we can get it to market.' Michael Bourque, president and CEO of Fertilizer Canada, says he's in Saskatoon this week paying close attention to the first ministers' meeting. Bourque says 75 per cent of Canada's fertilizer is transported by rail, and millions of dollars can be lost when it isn't shipped. 'Rail doesn't have capacity, or there are bottlenecks along the way,' he said. 'So we need to build it out, make it more reliable, make it more efficient and that would go a long way toward helping us expand and serve global markets.' Like other industries, Fertilizer Canada supports new pipelines. But Bourque says that isn't the only solution. 'In the long run, that will help the capacity. But in the short term, what we'd rather see is much more investment in the hard infrastructure, especially rails (and) ports,' Bourque said. Simon Enoch, senior researcher with the Canadian Centre for Policy Alternatives, says transportational costs tend to be the biggest trade barrier. Rather than new pipelines, Enoch believes upgrades to infrastructure could better facilitate trade. 'The private sector, the oil industry itself, has shown very little interest, which makes me think that they view it as not a good investment,' Enoch said. 'Something like this to be built I think it's going to require huge government subsidies.'
CTV News
4 days ago
- Business
- CTV News
Sask. industry leaders join first ministers in calls for pipeline, railway investment to boost trade
Saskatchewan Premier Scott Moe says pipelines are paramount to diversifying trade, along with investments in rail and ports. Allison Bamford has more. SASKATOON, SASK. — As Canadian politicians gathered in Saskatoon for the first ministers' meeting, some industry leaders are calling for infrastructure investment to help get product to market. New pipelines and improvements to railways and ports would help producers increase cash flow, according to Bill Prybylski, farmer and president of the Agricultural Producers Association of Saskatchewan. 'Grain movement has been slow,' Prybylski told CTV News. If grain isn't delivered, farmers don't get paid, which can cause cash flow issues at a very critical time in seeding. 'There's a lot of cash going into the ground and producers need inputs now,' Prybylski said. Like other industry leaders, Prybylski believes overcapacity demands on railways could be partly resolved if oil was transported through pipelines, rather than freight. Potash companies have been advocating for similar investments. 'Our entire infrastructure system is congested,' said Marnel Jones, director of Government and Public Affairs for The Mosaic Company in Canada. 'Right now, we just need to be thinking in a bigger way about how we use our entire supply chain more efficiently, and that includes getting oil into pipelines and potash and wheat into railcars so we can get it to market.' Michael Bourque, president and CEO of Fertilizer Canada, says he's in Saskatoon this week paying close attention to the first ministers' meeting. Bourque says 75 per cent of Canada's fertilizer is transported by rail, and millions of dollars can be lost when it isn't shipped. 'Rail doesn't have capacity, or there are bottlenecks along the way,' he said. 'So we need to build it out, make it more reliable, make it more efficient and that would go a long way toward helping us expand and serve global markets.' Like other industries, Fertilizer Canada supports new pipelines. But Bourque says that isn't the only solution. 'In the long run, that will help the capacity. But in the short term, what we'd rather see is much more investment in the hard infrastructure, especially rails (and) ports,' Bourque said. Simon Enoch, senior researcher with the Canadian Centre for Policy Alternatives, says transportational costs tend to be the biggest trade barrier. Rather than new pipelines, Enoch believes upgrades to infrastructure could better facilitate trade. 'The private sector, the oil industry itself, has shown very little interest, which makes me think that they view it as not a good investment,' Enoch said. 'Something like this to be built I think it's going to require huge government subsidies.'
Yahoo
13-03-2025
- Business
- Yahoo
Farmers sound alarm over growing crisis threatening economy: 'We are not secure'
Canadian farmers have raised concerns about knock-on effects from drought conditions that have led to customers going bankrupt before making payments for produce. Some farmers in Canada are facing the longest drought since the infamous Dust Bowl of the 1930s. Changing temperatures have caused stunted crops to grow since 2021 and low commodity prices, resulting in grain-buying firms going out of business and farmers unable to rely on insurance payments. While there is some financial protection from the federal Canadian Grain Commission, according to Insurance Journal, the CGC is allegedly not enforcing a crucial law: reporting unlicensed companies to the Public Prosecution Service of Canada. By law, only licensed companies can buy crops directly from farmers, and some unlicensed companies have slipped through the cracks. The CGC is also making it more difficult on farmers by requiring they post about non-payment within 90 days, and some have alleged that the organization has not consistently verified that licensed firms have proper security. According to Insurance Journal, "Discovering that some failing companies, such as Agfinity, are unlicensed, has alarmed farmers, as has finding out that some licensed companies are not fully insured." Agfinity allegedly delayed a $75,000 (Canadian) payment to at least one farmer, who had to keep "being a pain in the ass" until they finally paid the sum, with interest, before declaring bankruptcy, Insurance Journal reported. The CGC told The Cool Down that "If a company does not meet licensing requirements, the CGC will revoke or suspend their licence." And according to Insurance Journal, "the agency must complain to the Public Prosecution Service of Canada, which then decides whether to take action." Insurance Journal reported that the CGC hasn't made a complaint about unlicensed companies to the Public Prosecution Service of Canada in a minimum of seven years, according to a CGC spokesperson Christianne Hacault — which likely is due to most being licensed, but it also raises concern on the heels of reports that a company like Agfinity was operating while unlicensed. In a statement to The Cool Down, the CGC also said that "licensed grain companies must provide payment security to the CGC to cover money owed to producers for grain deliveries" and that "the CGC audits licensees to monitor that the reports have been completed properly and determine if security is sufficient based on the assessed level of risk to producers." Canada is the No. 1 and No. 3 producer of canola oil and wheat in the world, respectively. On top of changing temperatures and climate disasters, the country's farmers are also expecting tariffs to impact their sales. "Where do we cut our expenses? Or how do we get more revenue to do the things we need to do?" Canadian farmer Bill Prybylski told Insurance Journal. Prybylski is going to have to rely on a line of credit to keep his farm in Saskatchewan afloat until the next harvest in the autumn. Southern Saskatchewan farmer Cherilyn Jolly-Nagel also told Insurance Journal that the current situation "has fully exposed that we are not secure." With the lack of protections, lack of law enforcement, and low commodity prices, the farmers' risk of bankruptcy keeps rising. Do you think America is in a housing crisis? Definitely Not sure No way Only in some cities Click your choice to see results and speak your mind. The CGC is consulting with farmers to improve its protection systems and its bylaws. However, it would be further improved if Canadian farmers had other options like paid climate leave, snow-resistant solar panels, and extreme weather survivors groups to keep more businesses afloat despite impactful weather events. If you want to learn more about how climate issues are affecting where you live and how you can be a part of the solution, check out The Cool Down's guide. Join our free newsletter for good news and useful tips, and don't miss this cool list of easy ways to help yourself while helping the planet.
Reuters
12-02-2025
- Business
- Reuters
Drought leaves Canadian farmers unpaid, reveals holes in safety net
Summary Farmers face delayed payments due to grain company bankruptcies Drought worsens financial strain on Canadian farmers Failure of unlicensed companies, complaint deadline, insufficient security seen as holes in farm support REGINA, Saskatchewan, Feb 12 (Reuters) - Canadian farmer Bill Prybylski planned to buy a new tractor with proceeds from crops sold to two grain companies in early 2024. He delivered the grain before both companies declared bankruptcy, leaving him short C$165,000 ($113,487.86) they owed. Now Prybylski has no money to replace his old tractor. Hundreds of Canadian farmers have received delayed payments for their crops or not been paid at all, as a growing number of grain-buying firms declare bankruptcy amid drought and low commodity prices, according to interviews with dozens of farmers, a government agency, and a review of bankruptcy documents. Farmers are discovering they are not necessarily protected from the failures, revealing holes in Canada's farm safety net. The bankruptcies are adding to farmer troubles in Canada, the world's top canola and No. 3 wheat producer, while they also brace for tariffs from the United States. Prybylski, who farms in Willowbrook, Saskatchewan, is relying on a line of credit to cover the shortfall until he harvests the next crop in autumn. "Where do we cut our expenses? Or how do we get more revenues to do the things we need to do?" Prybylski asked. As planting season approaches, he needs to buy fertilizer, seed and fuel. Farmers can sell crops to companies that operate storage terminals, merchants and other farmers who fatten livestock. They are generally paid a few weeks after they deliver grain and have long incurred most of their costs, a problem for those who deliver to a buyer that goes broke before paying. Canadian farmers have some financial protection through the federal government-run Canadian Grain Commission, which regulates crop transactions, oversees grain company failures and at times covers some of what farmers are owed by failed companies. The CGC pays compensation from bonds and other security that licensed companies are required to post. The CGC managed four company failures in 2024, compared to zero or one most years, and the most since at least 2001, according to government data. But some unlicensed companies have also failed, suggesting the troubles may be broader. Farmer Christi Friesen said grain buyer Agfinity tried to delay paying her for three loads of peas, though it ultimately paid the C$75,000 it owed plus interest. Agfinity declared bankruptcy on November 25. "I needed to fight," said Friesen, who farms 5,000 acres (2,023 hectares) of cropland in Alberta's Peace region. "I kept being a pain in the ass." Discovering that some failing companies, such as Agfinity, are unlicensed, has alarmed farmers, as has finding out that some licensed companies are not fully insured. The situation "has fully exposed that we are not secure," said southern Saskatchewan farmer Cherilyn Jolly-Nagel. Companies directly buying crops from farmers must, by law, be licensed with the CGC, with few exceptions. For legal enforcement, the agency must complain to the Public Prosecution Service of Canada, which then decides whether to take action. The CGC has not made such a complaint in at least seven years, said spokesperson Christianne Hacault. Other flaws in farmer protections are the CGC's requirement that farmers report non-payment within 90 days, and licensed firms who fail to post adequate security, farmers say. The CGC is holding consultations with farmers about its protection system, Hacault said. "We know there are gaps." The federal agriculture minister's office, which oversees the CGC, did not respond to a request for comment. Agfinity owner Joseph Billett told Reuters that reduced sales due to smaller crops, farmers' reluctance to sell at low prices and competition from imports of U.S. corn to feed cattle pushed the company over the edge. "These three factors made profitability very challenging, and for us, impossible, these past few years," Billett said. DUST BOWL Farmers in the western half of Canada's Prairies have grown stunted crops for four years due to dry conditions. In some places, farmers say they are facing the worst prolonged drought since the 1930s Dust Bowl. Crop insurance claims between 2021 and 2024 shot up seven-fold compared to the previous four-year period due to drought-damaged crops, according to agencies in Alberta and Saskatchewan. Numerous small grain companies, brokers and merchants are among Canadian crop buyers, unlike some countries that are dominated by global players. In the United States, farmers also had low prices to deal with, but their crops had better growing conditions, allowing them to salvage revenue. Some states regulate grain companies so that farmers have protection against non-payment, but the situation varies state-to-state. In Canada, some companies have avoided bankruptcy, but are still struggling. Farmer-built North West Terminal in Unity, Saskatchewan, said in September it would stop buying grain at least through July to avoid losses. In an interview, NWT CEO Jason Skinner said intense competition to buy reduced crops hit his company, though it has avoided bankruptcy. "We've seen some significant headwinds and . . . margins that aren't covering costs," Skinner said. In May, LSM Grain picked up two truckloads of red lentils, worth about C$50,000, from Saskatchewan farmer Kelly Arthurs, but did not pay him. The CGC revoked LSM's license in July. The company could not be reached for comment. Arthurs complained to the CGC within 90 days of delivering his grain and was eventually compensated. But 17 farmers owed a combined $842,000 by LSM waited too long and will not qualify for compensation, according to a bankruptcy document and the CGC. Prybylski is one of them. Global Foods and Ingredients also went broke owing Prybylski money in the spring. He submitted his complaint in time to qualify for coverage, but only received 75% of what he was owed because Global had posted insufficient security. A law firm representing Global Foods did not respond to a request for comment. Arthurs said he felt so much stress from months of fighting to get paid that he may quit farming. "It's time to retire." ($1 = 1.4295 Canadian dollars)
