Transparency needed in dealings between companies and producers.   Ottawa—A sharply reduced Prairie grain harvest this year means farmers will have a lot less grain to market and they need to work with the companies they contracted to deliver to on solutions to mitigate further financial harm, says Grain Growers of Canada. Chair Andre Harpe said GGC has met with the major grain companies to discuss how the companies can support producers through these trying times. “As farmers, we recognize the importance of upholding our commitments and honouring our contracts. However, this year will be harder than most. We are hoping that our industry partners can commit to working with us on solutions to problems that are beyond our control.” Wade Sokowich, Executive Director of the Western Grain Elevator Association, said grain companies are not forcing farmers to pay more than is actually required to acquire the grain that could not be delivered under contract. “Each grain company has a slate of contracts they are required to fulfill with their domestic and international customers, and are seeking to acquire the limited quantities of grain that exist over their competitors,” he said. Grain prices have changed since the contracts were signed, which requires companies to be very diligent and cautious. “We hope in the end that individual outcomes will be considered fair and reasonable under the circumstances.” Harpe said the Prairies faces historically low projections for yields, which may not allow for a full delivery on committed contracts. “Any additional fees or penalties on top of that would make a down year even more punishing – for all of us.” He wants farmers to consider their own contractual rights with grain handling companies and to request transparency about the cost of grain replacement under their contracts. “Grain companies should be transparent about how those costs were measured and ensure that farmers are not forced to pay more than is actually required to acquire the grain that could not be delivered under contract,” Harpe said. The growing season started strong and “everyone was extremely optimistic about what the harvest would bring, Sobkowich said. Prices were historically high and so producers forward sold. This caused grain companies to forward sell into the domestic and international market in order to create movement. The damage to the crop which occurred in late June and July has caused everyone to be short – farmers on contracts and grain companies on export commitments.” The approach each grain company is taking is made on an individual basis, he said. Companies view contracts as a competitive issue, thus the association does not and should not have influence on their decision making. It would be viewed as anti-competitive if the WGEA were to get together and determine how to price the producer buy-back. Alex Binkley is a freelance journalist and writes for domestic and international publications about agriculture, food and transportation issues. He's also the author of two science fiction novels with more in the works.