APAS is concerned that grain producers are already facing delays of up to three months for delivery of grain they have contracted. Because they are dependent on timely delivery to get paid, they may be unable to meet timelines for payment of loans they use to finance their farm operations.
APAS is calling on lenders to work with producers to deal with interruptions to farm cash flows.
“We’re hoping that lenders will be flexible with producers to maintain cash flows until grain moves and farmers get paid,” says APAS President Norm Hall.
While the Province of Saskatchewan has identified a 40 per cent increase in grain production this year, Canadian Grain Commission data show exports of major grains to January 5 is up only two percent over last year. Producers are well aware the elevator system has been virtually full for some time now and the impact that has on grain movement and their cash flow.
APAS is aware that some lenders have already contacted their clients about the issue but is encouraging producers to engage their lenders and develop a plan.
Hall advises: “Don’t wait for a letter. If you’re going to have delayed grain deliveries, talk to your lender now to find out what arrangements can be made to tide you over until grain moves.”