Many Saskatchewan farmers unable to fill grain contracts: industry survey

The Agricultural Producers Association of Saskatchewan says more than 200 producers responded to its survey, highlighting the significant impact drought had on the industry.

An Agricultural Producers Association of Saskatchewan (APAS) survey is shedding light on just how significant an impact the 2021 drought has had on some farmers.

The optional survey has so far received more than 200 responses, 75 per cent of which reported being unable to fulfil their 2021 grain contracts.

“Some respondents included that they are facing bankruptcy due to drought and contract shortfalls,” reads an APAS news release on the subject.

It says “25% of respondents also said they had trouble contacting the grain buyers resolving issues arising from production shortfalls, and many of the respondents said they will not be working with the same grain company in the future or will not be signing a contract again.”

Speaking to Global News Tuesday, APAS President Todd Lewis acknowledged that the drought meant fulfilling contracts hasn’t been easy for “either side” and added producers will likely be more cautious with their plans moving forward.

“It’s tough on the grain companies as well. They don’t want to be in this position but unfortunately the dry weather has come, the contracts are signed and now it’s time to settle these contracts and it’s not fun for either side,” he said, adding that difficult years are part of the industry and need to be accommodated.

“I think producers are looking for a better contract to sign going into next year. It’s still dry. We’re a long way form being out of this drought.”

The APAS release also points out producers with low yields have had to pay “penalties and administrative fees between $20,000 and $300,000to grain companies.”