In a February 1, 1983 news release announcing the end of the Crow Rate, the federal Liberal government predicted: "The revised freight rate will remove disincentives to ... food processing in Western Canada" and "generate much needed jobs and spin-off activity to stimulate economic recovery and development throughout this decade."

Since that announcement, freight rates have increases seven-fold: from less than $5.00 to over $35.00. While such increases have placed a large burden on farmers, they have done nothing to increase food processing. In 1984, 260,000 Canadians were employed in the agri-food processing sector. Today, 257,000 are employed. The graph below compares freight rate increases and their effects on employment in the processing sector.

Grain freight rates and Canadian agri-food processing employment: 1984 - 97

A Profile of Employment in the Agri-Food Chain, Agriculture and Agri-Food Canada, April 1999
StatFacts, Saskatchewan Agriculture and Food, April 22,1999

The benefits predicted by the Liberal government when it terminated the Crow Rate in 1983 and the Crow Benefit in 1995 have not materialized. These changes have not benefitted farmers, workers, consumers, or the Canadian economy. To the contrary, all have suffered. The federal government has a dismal track-record when it comes to predicting the costs and benefits of its transportation 'reforms.' Farmers should keep this in mind when they read Minister Vanclief's assertions that implementing Estey's recommendations will "benefit farmers and other stakeholders" and Minister Collenette's assurances that implementing the Estey Report will "improve the grain transportation system".

Back to Union Farmer Index

Back to NFU Home Page