Systemic Wealth Misappropriation Includes Robbing Farmers

of Hundreds of Millions Through Excessive Rail Rates


© 2010 Brad Kempo B.A. LL.B.

Barrister & Solicitor


The super rich and Chinese have been embezzling vast wealth from yet another category of victim.  The evidence comes from a June 2010 released study proving that Canada’s farmers have been charged excessive rates year-after-year for freight.  Like taxes, it’s another way to extract capital from the economy.



There is only one group in Canadian society that has no right to scream to the rafters over being a direct or indirect victim of the successfully concealed dimension of Canadian governance involving Chinese joint governance, economy monopolization and wealth embezzlement – the super rich.  Everybody else – the middle and lower classes comprising some 30 million – have a cause against them and are entitled to purge the malfeasant from political and corporate office.  



In this instance it’s farmers who can demand that heads roll.  Not only do they have Mother Nature to contend with, those who are supposed to be protecting the public interest in their name have been secretly gouging each of them to the tune of thousands and in some cases tens of thousands of dollars a year.    In the 2008-9 year they were victims of a $275 million theft.  The year previous it was $123 million.  That’s a total of $400 million.  Therefore, the wealth distribution undertaking proposed by the RCC political coalition will include farmers for these losses. 



Canada’s farm groups call for government review

Canadian Federation of Agriculture

June 16, 2010

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“Farmers were supposed to share in efficiencies in the grain handling and transportation system from elevator and track closings, but so far we have not,” said Greg Marshall, president of the Agricultural Producers Association of Saskatchewan (APAS). “We need a full costing review to determine fair costs for freight.”


The study by respected rail analyst John Edsforth found that, rather than share in efficiencies, farmers have paid $6.87 per tonne more than what was considered fair and reasonable compensation for moving grain under the former Western Grain Transportation Act (WGTA).


“This means thousands of dollars to the average farmer,” noted Allen Oberg, an Alberta farmer and chair of the CWB’s farmer-controlled board of directors. “On my farm, this amounts to between $17,000 and $32,000 per year.”


The independent study was released today by APAS, the Canadian Federation of Agriculture (CFA), the CWB, Keystone Agricultural Producers (KAP), the National Farmers Union (NFU), and Wild Rose Agricultural Producers (WRAP).


The study found that in 2008-09, farmers paid $8.81 per tonne, or $275 million overall, more than was deemed fair and reasonable under the WGTA. The previous year, they paid $4.61 per tonne, or $123 million, more than was considered fair.


High volumes, rail efficiencies and low fuel prices combined to create the increased amount in 2008-09. The study updates a 2008 Travacon report that said farmers paid over $100 million more than their fair share in 2006-07.


Farmers can estimate how much they have individually paid above their fair share using a new rail cost calculator on the CWB’s Web site at


“Most farmers will be shocked to learn how much more they pay now than under the WGTA,” Marshall said. “No one is saying the railways shouldn’t earn a profit, but we are saying farmers should be paying a fair and reasonable amount.”


Railway costs for grain movement have not been reviewed since 1992. Since then, transportation has seen two major efficiencies: the number of elevators has plummeted from 1,500 to about 240, and the railways have moved to multi-car blocks of at least 50 cars at a time.


Prairie farmers are heavily reliant on railways. Farmers here move their grain more than twice the distance to port of any other grain exporting nation – Saskatchewan is 1,450 kilometres from the nearest port, compared to 650 for a farmer in Kansas and 280 for Australian farmers. For Prairie farmers, transportation is the single largest cost in marketing grain.


The farm groups are encouraging all producers to join a call for action and make their voices heard. Farmers can go to the CFA’s Web site at to submit an electronic postcard that will tell political leaders that a costing review is needed.


Western Canadian farmers: 'We want reasonable rail rates'

June 17, 2010

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Western Canadian farmers have been paying $200 million more per year for rail service than was considered fair under former federal legislation, according to an independent study recently released by several Canadian farmer groups.


Conducted by rail analyst John Edsforth, the study found that farmers have paid more per ton than grain rates considered fair and reasonable under the former Western Grain Transportation Act. The study was released by the Agricultural Producers Association of Saskatchewan (APAS), Canadian Federation of Agriculture, Canadian Wheat Board, Keystone Agricultural Producers, National Farmers Union and Wild Rose Agricultural Producers.


Rail costs for grain movements have not been reviewed since 1992, the groups claim. Since then, the number of elevators has dropped from 1,500 to about 240 and railroads have transitioned to multi-car blocks with at least 50 rail cars, group officials said in a joint statement.


"We need a full costing review to determine fair costs for freight,” said APAS President Greg Marshall. "No one is saying the railways shouldn't earn a profit, but we are saying farmers should be paying a fair and reasonable amount."


The federal government caps revenue that CN and Canadian Pacific can generate from grain moves. For the 2010-11 crop year beginning Aug. 1, the index used to calculate the revenue cap will increase 7 percent primarily because of higher fuel prices.


CN and CP dispute the farmer groups' overcharge claims and underscore their efforts to improve the efficiency and reliability of grain moves. For example, CN is setting certain days to deliver cars to grain elevators for later pick up, while CP continues to upgrade grain-handling facilities (including 50 during the past decade).



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