More than 75 per cent of 200 Saskatchewan farmers who have responded to a survey said they are not able to fill grain contracts because drought devastated their crops this year.
The survey is being conducted by the Agricultural Producers Association of Saskatchewan.
Some farmers are facing penalties as high as $300,000 and interest rates as high as 19 per cent. Many face penalties of $20,000 to $30,000.
When they realized they were going to be short of grain, 25 per cent said they had difficulty reaching their contract buyers.
The survey revealed big differences among grain-buying companies and many farmers said they won’t be contracting again.