(Rural Roots Canada) – Farmers across Canada are raising the alarm as the country’s two main rail companies, Canadian Pacific Kansas City (CPKC) and Canadian National (CN) prepare to strike.

Stop The Strike, a coalition of agricultural groups representing farmers and producers says the prospect of a work stoppage at both rail companies spells disaster for Canada’s agriculture industry. With harvest already underway, it’s calling on the railways and the federal government to take the necessary steps to prevent a strike from happening.

“Make no mistake, unless both parties reach an agreement, or the government takes action to prevent the strike, we are sleepwalking into a calamity,” says Dean Roberts, Vice-Chair of the Canola Council of Canada.

The rail companies have said they will start locking out workers on Thursday if a deal can’t be reached. The Teamsters union says it’s ready to call a strike for the same day. The union has demanded better pay and benefits, including improved crew scheduling and provisions for crew fatigue management.

The coalition says the economic impact of a rail stoppage is immeasurable, with millions of dollars potentially being lost every day that the trains aren’t running.

“Our research indicates that the unprecedented work stoppage will cost grain farmers $43 million a day next week, increasing to $50 million the following week,” says Andre Harpe, a grain farmer and chair of the Grain Growers of Canada. “Simply put, rail is essential to delivering the grain that Canadians and the world rely on. This has to get resolved quickly.” Some line companies have already stopped taking grain from farmers in preparation for the strike.

Canola farmers would also take a massive financial hit that may be impossible to recover from. “We risk losing approximately $11 million per day in exports, together with another $20 million in lost crush as a result of idle canola processing facilities,” says Roberts, adding these figures don’t take into account any future losses resulting from the effects of the rail stoppage on Canada’s international reputation as a reliable supplier.

Sylvain Fournaise, with the Canadian Meat Council, says it’s not just the export of meat and grain to overseas markets that will be affected, there is also an impact on imports of products used by Canadian producers. “We rely on rail transportation for the supply of ingredients used to process our products that are sold and consumed in Canada. Without that supply of ingredients, it will result in empty shelves in grocery stores.”

Many farmers don’t have the storage capacity to store their harvested crops on-site resulting in crops being lost if they can’t be moved. And without additional storage, the product likely won’t be harvested which would impact seasonal workers says Keith Currie, president of the Canadian Federation of Agriculture. “Many of our horticultural operations have seasonal ag workers and if they can’t harvest the product because of a lack of storage, those workers may not be working. That could jeopardize the program in the future.”

Stop The Strike is also concerned about Canada’s reputation as a reliable supplier. With no movement and the rail strike looming, it worries the country’s reputation and relationships will be forever damaged and may not ever fully recover.

There has been no indication from the federal government that it will invoke section 107 of the Labour Code, sending the parties to binding operation. In remarks to the media on Wednesday, Prime Minister Justin Trudeau would only urge both sides to reach an agreement for the sake of farmers, workers, and businesses across Canada.

“My message is straightforward: it is in the best interest of both sides to continue doing the hard work at the table to find a negotiated resolution,” said Trudeau.

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The government’s hesitancy to use legislation to shut down the strike threat is a major frustration for Terry Youzwa, chair of Pulse Canada and a farmer from Nipiwan, Saskatchewan. “Frankly, it’s mind-boggling that 150 years after the last spike was pounded, we’re still trying to convince the federal government that functioning railways are important.”

There are currently no feasible, short-term transportation solutions that farmers can use to get their products to where they need to be. Few loads can be shipped by truck but most producers, and the bulk of Canada’s economy, move by rail. Coupled with a shortage of truck drivers, and the environmental impact of having more big rigs on the roads, shipping products to the east and west coasts is not an option.

Canada’s Labour Minister Steven Mackinnon is meeting with CPKC, CN, and the Teamsters in Calgary, to push all three to hammer out a deal and avoid a shutdown. If no deal is reached, rail workers will be off the job as of 12:01 a.m. ET Thursday.