Farmers
2007-08 BPC for wheat
In response to farmer feedback requesting the option, the 2007-08 BPC for wheat has been refined to enable farmers to lock in their futures value up to a full year prior to harvest.
Beginning September 1, 2006, producers can lock in the futures component of their BPC based on the U.S. December futures value for the relevant U.S. futures contract for all seven classes of wheat. Futures values will be quoted in Canadian dollars. Farmer can then price the basis component beginning February 26, 2007, until 7:30 AM Central time, November 1, 2007.
Pricing the futures earlier will provide farmers a better mechanism to:
- Budget and plan 2007-08 seeding intentions;
- Take advantage of future market rallies;
- Lock in foreign exchange when pricing the futures; and
- Manage smaller tonnages using the BPC, due to its 20 tonne minimum commitment.
The producer can also select the force majeure clause upon BPC sign-up for the relevant type and class of grain. The force majeure clause gives the producer protection against large pricing damages in the event that an event occurs, one which is out of the producer’s control such as flooding, drought or other natural disasters. The cost of the option is $3.00 per tonne and will be offered on a first-come, first-served basis, as the program is subject to a tonnage limit.
The CWB will also offer the March 2008 futures and basis values starting February 26, 2007 with the addition of the May 2008 and July 2008 futures and basis offers on August 1, 2007.
General information
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2007-08 BPC worksheet
(PDF format 62 KB)
Current pricing is available here or by calling the CWB's toll-free line. You can commit to contracts over the phone by providing your CWB Producer Identification Number along with your Personal Identification Number (PIN). Fax commitments are also accepted at (204) 983-8031. Sign-up application forms are available by contracting the CWB and local elevators.