Newsroom
2007
Initial payments for 2006-07 crop year increased
June 8, 2007
Winnipeg -- The CWB today announced that 2006-07 initial payments for wheat, durum and Pool B feed barley will increase effective June 14, 2007.
The increase in initial payments for wheat will range from $15 to $18 per tonne, depending upon the grade and class. In the case of durum, the increase will range from $17 to $19 per tonne. The increase for Pool B feed barley is $20 per tonne.
The adjustment payments, in dollars per tonne, for representative grades in each pool account are listed below. The total initial payment to date is basis in-store Vancouver or St. Lawrence and must be adjusted for freight/elevation charges to arrive at farm gate prices.
| Grade | Initial Payment | Adjustment payment | Total payment to date | 2006-07 Pool Return Outlook |
| No. 1 Canada Western Red Spring Wheat 12.5 | $178.25 | $16 | $194.25 | $215 |
| No. 1 Canada Western Amber Durum 12.5 | $175 | $19 | $194 | $221 |
| 1 CW Feed barley (Pool B) | $110.50 | $20 | $130.50 | $190 |
A complete listing of payments for all grades in dollars per tonne and dollars per bushel is posted on the CWB’s Web site (under the “Farmers” tab, see Farmer Payments).
Farmers who delivered wheat and durum to the CWB between Aug. 1, 2006 and June 13, 2007 will receive an adjustment payment. Farmers who delivered feed barley to the CWB between Feb. 1, 2007 and June 13, 2007 will also receive an adjustment payment. The payments will be mailed by June 26, 2007 or received by direct deposit on June 25, 2007. Farmers who wish to defer payments have until June 19, 2007 to notify the CWB at 1-800-275-4292.
Initial payments should not be confused with monthly Pool Return Outlooks (PROs) which are CWB estimates of farmers’ total returns from each of the pool accounts. Rather, initial payments represent a portion of the returns farmers can expect from the sale of their grain over the entire pool year. The Government of Canada guarantees initial payments and therefore approves the level at which they are set.
During the crop year, the CWB regularly reviews the initial payments and recommends adjustment payments if market conditions and sales progress warrant. The entire payment that farmers can expect for their grain is reflected by the CWB’s monthly PROs, which can be viewed at www.cwb.ca under the “Farmers” tab (see Pool Return Outlooks).
Upon delivery, farmers may alternatively choose the CWB’s Early Payment Option (EPO) as a payment method. The EPO, as with the other CWB Producer Payment Options, can be used as a cash-flow tool. It provides similar returns to the CWB pool accounts, less a discount. The EPO that is currently available allows farmers to receive an additional payment equal to 100 per cent of the PRO, within 10 business days.
Controlled by western Canadian farmers, the CWB is the largest wheat and barley marketer in the world. One of Canada’s biggest exporters, the Winnipeg-based organization sells grain to over 70 countries and returns all sales revenue, less marketing costs, to farmers.
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For more information, please contact:
Maureen Fitzhenry
CWB media relations manager
Tel: (204) 983-3101
Cell: (204) 227-6927