Newsroom
2001
Febraury 20, 2001
Enhanced payment options for wheat and barley
Winnipeg -- The CWB today announced enhancements to the Producer
Payment Options for the 2001-02 crop year. The enhancements will
make it possible for farmers to price additional classes of wheat
and feed barley, lock in the futures price after delivery and
change the basis contract futures month at any time before the
contract month expiry date. As well, daily prices will be
offered.
"Together with price pooling, these programs allow farmers to
choose from a broad range of pricing and cash flow options that
best meet their individual business needs," said Board of Director
Chair Ken Ritter.
The payment option programs will be available daily from March 22
until July 31, 2001. The options are as follows:
- Farmers can lock in a fixed price for a given quantity of
wheat (excluding durum) or feed barley based on the CWB´s
Pool Return Outlook (PRO). Feed barley is being offered as a
pilot program.
- Farmers can lock in a basis over the Minneapolis Grain
Exchange futures price and later lock in a futures price for
wheat. The basis will not be offered for barley.
Wheat and barley delivered under the Producer Payment Options
program and the price pooling system will occur through the same
delivery mechanisms available to all farmers, including acre-based
calls and delivery contract calls. The Producer Payment Options
will not financially affect the CWB pool accounts.
Beginning with the announcement of the PRO on March 22, 2001 and
then every business day up to and including July 31, 2001, a fixed
price and a basis will be available for farmers who want to lock in
a minimum 20 tonne contract. Farmers who lock in a basis along with
their tonnage must commit to a Minneapolis futures price by
contacting the CWB at a later date. Farmers with a Personal
Identification Number (PIN) can commit to a contract over the
telephone.
The fixed price will be calculated using the PRO (basis instore
Vancouver/St. Lawrence) less a discount for risk, administration
and the time value of money. The basis will equal the fixed price
minus the current Minneapolis futures price, adjusted to Canadian
dollars per tonne.
Additional program details will be available on the CWB´s
toll-free line at 1-800-ASK-4-CWB, our Web site at www.cwb.ca and
in Grain Matters, the CWB´s newsletter to farmers.
Headquartered in Winnipeg, Manitoba, the Canadian Wheat
Board´s mandate is to create value for Prairie farmers by
being an innovative world leader in marketing grain. Controlled by
15 directors, including 10 elected farmers, the CWB sells wheat,
durum and barley to more than 70 countries. All sales revenue, less
the costs of marketing, are returned to western Canadian
farmers.