Just before Arthur Kroeger released his report on grain handling and transportation, NFU President Cory Ollikka sent a letter to Federal Transportation Minister David Collenette. The letter stated: "Farmers' interests are very different from those of CN or Sask. Wheat Pool. Railways, grain companies, and farmers did not reach consensus on major issues such as open access, rate setting mechanisms, hopper-car ownership, or the role of the CWB. If Arthur Kroeger's report contains recommendations, they will reflect his opinions and biases, not agreement among farmers, railways, and grain companies."

This lack of agreement will force Collenette, if he decides to move forward on transportation system deregulation, to do so without the figleaf of "industry consensus." Had Kroeger succeeded in manufacturing consensus, Collenette would have been able to state that his deregulation legislation "was a result of extensive consultation, based on an industry consensus, and reflected the wishes of all the stakeholders at the table."

While lack of consensus clarifies the impetus behind any future legislation, it does leave an unresolved problem for farmers. Ollikka reminded Collenette that the failed Kroeger talks leave $224 million of farmers' money on the table. The CWB and independent economists estimate that current freight rates are $200 - $224 million annually above the level that they would have been had quadrennial (every four years) costing reviews and productivity-gain sharing continued. This works out to approx. $5,000 for the average grain farmer every year. This exceeds the amount that those farmers can expect from AIDA.

The letter recommended that if Collenette is looking for consensus in the wake of the failed Kroeger initiative, he need look no further than the nearly unanimous support for the reintroduction of productivity-gain sharing. The CWB, Agricore, Alberta Soft Wheat Producers Commission, the Canadian Federation of Agriculture, the Hudson Bay Route Association, Keystone Agricultural Producers, the NFU, the Sask. Association of Rural Municipalities, Sask. Wheat Pool, Wild Rose Agricultural Producers, Winter Cereals Canada Inc, and United Grain Growers have all endorsed a resumption of costing reviews and productivity-gain sharing.

Ollikka urged Collenette to maximize savings for farmers, not to bow to railway pressure. "Farmers are angry and frustrated," stated Ollikka. "Recent Saskatchewan election results should be a warning to politicians who underestimate farmers' financial pain and stress. The farm community is like a wounded, angry bull. If that angry bull sees Ottawa proceeding with transportation changes which result in torn-up branchlines, closed elevators, higher freight rates, and more power and profit for railways, then Ottawa politicians can expect an equally harsh reaction," he said.

In 1998, the combined profits of Canadian National (CN) and Canadian Pacific (CP) totaled $586 million. This amount exceeded the combined 1998 net farm income of the approximately 80,000 farm families in Manitoba and Saskatchewan.

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