Thank you very much.

Good morning, Mr. Chairman and members of the Standing Committee on Agriculture and Agri-Food. Thank you for the opportunity to address the committee as part of your study into the issues and opportunities related to railways.

My name is Drew Spoelstra and I'm the president of the Ontario Federation of Agriculture. I farm near Hamilton with my family. With me today is Jason Bent, OFA's director of policy research. We represent over 38,000 farm families across Ontario and are committed to advocating for the interests of our members and the broader agri-food industry.

Ontario farmers face significant challenges as railways look to off-load costs onto them. These challenges centre on two main focus areas. The first is the costs related to safety upgrades for private railway crossings, and the second is the issue of drainage infrastructure.

Many Ontario farmers depend on private railway crossings to access their fields. These crossings are vital for transporting equipment, supplies and produce, ensuring that landowners can reach their own property, which was once divided by the railways.

Safety is critical to both railway users and those needing to cross the railway tracks. However, new safety regulations under the grade crossings regulations, which railways must comply with by the 28th of this month, will put an enormous financial burden on some farmers. Upgrade costs vary greatly depending on what's needed for each crossing.

Some of our members with private railway crossings have recently received letters from CN Rail informing them that unless an exemption to the regulatory requirements is granted, their crossings will need to undergo mandated upgrades, which will include the installation of an automated warning system with gates. In the letter, CN Rail provides an estimate that notes the necessary upgrades will cost each private railway crossing owner between $600,000 and $2 million, depending on the cost of installation for each automated gate system, in addition to an annual maintenance cost of $9,685 for the equipment.

The excessive costs of these required regulatory upgrades will result in the closure of some private crossings. Without alternatives, some property owners will have no choice but to lose access to the landlocked portions of their properties.

We understand that CN Rail is currently pursuing options with the regulator to seek a regulatory exemption for some specific crossings where CN Rail believes that cost-effective alternative measures could be implemented that would provide the same level of safety. While we support CN Rail's efforts to seek lower-cost safety alternatives for these crossings, the question remains as to who pays for the upgrades.

Depending on the crossing, some railways are pushing farmers to bear the upgrade costs by imposing new agreements. These unilateral agreements not only shift costs onto farmers, but also threaten to destabilize long-standing arrangements. In some cases, farmers are even receiving 30-day notices to close crossings or, worse, finding their crossings removed without notice.

OFA believes an immediate moratorium on the unilateral closing of private railway crossings is urgently needed. Additionally, railways must continue to honour their past long-standing obligations to manage maintenance and upgrades at their own expense. We support the efforts of railways like CN to seek reasonable safety alternatives for crossings.

Looking now at drainage, the shift in cost responsibilities is not limited to railway crossings. Railways are now backing out of their obligations under Ontario's Drainage Act, which distributes drainage costs based on the area of land drained. Proper drainage is critical for farmland, ensuring that soils remain productive by preventing waterlogging and flooding. Historically, railways have paid municipal drain assessments, but they now refuse to do so, citing their federal regulation status as grounds for exemption. This refusal means that millions of dollars in drainage costs could fall on farmers and rural municipalities instead.

Our position is that railways should remain responsible for these drainage costs, consistent with their historical obligations under Ontario's Drainage Act. In support of this, OFA has applied for intervenor status in a legal challenge between the Municipality of Chatham-Kent and the Canadian Pacific Railway. We are also requesting federal amendments to the Canada Transportation Act to clarify that railways must honour such provincial legislation.

In conclusion, these sudden and unilateral cost shifts are simply unacceptable. Farmers are already under intense financial strain from rising input costs, climate challenges and market instability. Imposing unexpected financial burdens undermines the stability of agreements that farmers rely on, impacting their mental health, their productivity and, ultimately, their livelihoods.

OFA urges the federal government to act swiftly on the following points:

Impose an immediate moratorium on the closure of private railway crossings.

Reinforce railway responsibility to bear the cost of necessary upgrades and maintenance for private railway crossings, as they have done in the past.

Prevent unilateral agreements imposing new contracts that shift maintenance costs and upgrades to landowners.

Secure government funding. Fully fund the rail safety improvement program to support farmers with compliance costs for safety upgrades. The deadline is fast approaching, and immediate action is critical for preventing these costs from falling on farmers.

Legislate amendments to the Canada Transportation Act to prevent railways from shifting costs historically covered by the railways.

Ontario's farmers provide essential services that support our economy and feed Canadians. We urge this committee to support policies that ensure fair and stable terms for farmers, enabling them to continue to produce food while safeguarding their financial and mental well-being.

Thank you for your attention to these urgent issues. We look forward to working together to secure a viable solution for Ontario's farmers and rural communities.