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Canadian Wheat Board

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Farmers

Malting barley protein payments

Malting barley protein payments will continue in the 2006-07 crop year. This program enables producers who grow two-row barley to receive a premium payment when barley is accepted and delivered as malting barley.

Selection and delivery

Your contract offer is completed and submitted with a representative sample of your barley. If you would like information about the test results of your barley sample, check the "Yes" box in Part A of the contract.

An area in Part A has been provided for you to advise your Selector of any other conditions you may have regarding your offer. Note that if you have specified other conditions and your Selector disagrees with one or all of such conditions, the contract will be of no force and effect. You may want to discuss any other conditions you may have with your Selector prior to submitting your offer.

You may negotiate a delivery period with your Selector. Refer to Part B of the contract to determine your delivery period options.

The Selector has 14 calendar days to accept your offer. You cannot offer that same grain to any other Selector during this time unless:

Once your barley has been accepted, the Selector will complete and sign Part B of the Selected Barley Storage and Delivery Contract (SBSDC). The CWB will send you a letter confirming selection. The confirmation letter will indicate the delivery period as well as any changes to the Specifications/Requirements (additional freight, maximum moisture, minimum germination, tonnes accepted) of your offer. If there are changes to the Specifications/Requirements, you have 14 calendar days from the date of the CWB confirmation letter to cancel your offer.

The Selector may request one or more recheck samples before you deliver. This is important because the Selector will perform germination and moisture tests on these samples. A recheck sample is an eligibility requirement for storage payments on rejected barley.

When delivery is called, you have 21 calendar days to deliver your barley to the selecting party.

The Canada Grain Act requires that a portion of the delivery sample be placed in a locked box to compare to the unload sample, if necessary. A lock-box sample is an eligibility requirement for storage payments on barley rejected because of below-minimum germination.

Recheck samples

You are encouraged to submit recheck samples to ensure your barley remains in condition during on-farm storage. The industry standard for germination testing is the Germinative Energy test, which is a three-day, 4ml water-based test. There are two benefits to submitting recheck samples.

Selected barley recheck samples can be recorded in the delivery permit book on pages 29 and 30.

Delivery period

The Selected Barley Storage and Delivery Contract (SBSDC) gives you the option to negotiate with your Selector when your barley will be called for delivery. The section regarding delivery period is in Part B of your contract and indicates two choices, both with corresponding delivery periods. The top box is your indication of a binding delivery period. After checking this box, your Selector will then indicate one of three delivery periods and call your selected barley for delivery within 21 days of the expiry of that date.

Alternatively, your Selector may indicate the second box with corresponding delivery period dates. This is for informational purposes only, but still provides you with some idea about when you may expect to be called for delivery. Your delivery period is reported to you in your confirmation letter, which is sent when a Selector has accepted your barley.

Payment

You can receive the CWB initial payment for selected barley at the time your grain is delivered to the primary elevator. Your Selector will establish a grade. You may also choose to contact the Canadian Grain Commission (CGC) Prairie Region Service Centre nearest you for a binding grade on your delivery sample. Call the CGC at 1-800-853-6705 for further information.

The CWB will pay storage from the date the Selector accepts the contract to the date of delivery. The 2006-07 rate of payment is three cents per tonne per day for the first 120 days; five cents per tonne per day for day 121 through day 180; and nine cents per tonne per day for day 181 and later.

Producer Payment Options for selected barley

You can sign a Basis Payment Contract (BPC), Fixed Price Contract (FPC) or Early Payment Option (EPO) contract for all or a portion of your selected barley.

For 2006-07, the BPC for selected barley is available to all producers.

Landlords who wish to participate in selected barley PPO contracts must sign their own PPO contract and SBSDC. The landlord's SBSDC number must be reported on the cash ticket when settlement is made.

Additional information and daily prices are available on our Web site or by calling the CWB Business Centre at 1-800-275-4292.

Rejected selected barley

If barley is rejected at delivery or unload because it does not meet minimum germination levels, you may be eligible for storage payments based on the following criteria:

Producers are eligible for storage payments for each day from the delivery contract acceptance date, up to the date the barley is delivered.

Delivering rejected selected barley as CWB feed barley

If you have selected barley that was rejected at delivery or unload, you can complete the Rejected Selected Barley form if you wish to deliver the grain to the CWB as feed barley. A GDC for feed barley will be created for you. The form is available on our Web site at www.cwb.ca or on Fax on Demand at 1-800-275-4292.

Shipment by consigned car

You may also ship by consigned car. Payment is issued based on grades established by the CGC.

If your barley unloads after July 31, you may choose the crop year in which you want to take payment.

If your barley is rejected at unload, you can deliver it to the CWB, deliver it to the off-Board market (if available) or have the grain shipped back to you at your cost. You may be eligible for storage payments.

Terms and conditions for selected barley storage and delivery contracts (PDF file format)
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Participating industry partners in the CWBprotein payment program for two-row malting barley:

Agricore United
Canada Malting Co. Ltd.
Delmar Commodities Inc.
Fill-More Seeds Inc.
Gambrinus Malting Corp.
Great Northern Grain Terminals Ltd.
Great Sandhills Terminals
Louis Dreyfus
Mid-Sask Terminal Ltd.
Prairie Malt Ltd.
Prairie West Terminal Ltd.
Rahr Malting Canada, Inc.
Seed-Ex Inc.
South West Terminal Ltd.
Westlock Terminals (NGC) Inc.

Schedule of protein payments on 2006-07 malting barley deliveries
Protein level Payment per tonne
12.5% $1.00
12.4% $1.20
12.3% $1.40
12.2% $1.60
12.1% $1.80
12.0% $2.00
11.9% $2.30
11.8% $2.60
11.7% $2.90
11.6% $3.20
11.5% $3.50
11.4% $3.80
11.3% $4.10
11.2% $4.40
11.1% $4.70
11.0% and below $5.00