Newsroom
2002
March 11, 2002
CWB announces enhancements to wheat and barley payment options
Winnipeg - Prairie farmers will soon have more flexibility in pricing their 2002-03 wheat and barley crops. Starting March 28, 2002, farmers will be able to sign up for both Fixed Price and Basis Payment contracts by class. Feed barley will also be eligible for Fixed Price Contracts. Previously, farmers were only able to price their contracts off No. 1 Canadian Western Red Spring wheat with protein of 13.5 per cent while the feed barley Fixed Price Contract was offered as a pilot project.
"These enhancements represent significant improvements to both programs," noted Ken Ritter, chairman of the CWB's farmer-controlled Board of Directors. "Prairie farmers want options for how their grain is priced and when they receive payment. At the same time, they continue to use and support the pool accounts. Both Fixed Price and Basis Payment contracts provide farmers with marketing options while preserving the integrity of the pool accounts."
Fixed Price Contracts provide farmers with the opportunity to lock in a specific price for part or all of their future production. Basis Payment Contracts, on the other hand, allow farmers to lock in a basis or spread between the Fixed Price and the corresponding futures contract. At time of contract sign up, farmers also lock in the futures month to which the basis will apply. Additional program details are available on the CWB Web site at www.cwb.ca.
Controlled by western Canadian farmers, the CWB is the largest wheat and barley marketer in the world. As one of Canada's biggest exporters, the Winnipeg-based organization sells grain to more than 70 countries and returns all sales revenue, less the costs of marketing, to Prairie farmers.