Newsroom
2007
Initial Payments for 2007-08 crop year increased
October 2, 2007
Winnipeg - The CWB today announced that 2007-08 initial payments for wheat, durum, feed and designated barley will increase effective Oct. 4, 2007. The CWB also announced that it yesterday submitted new recommendations for a further increase to the initial payments given the dramatic increase in market prices since August 15, when the last adjustment recommendation was submitted to the federal government.
The Oct. 4 increase in initial payments for wheat will be $28.50 per tonne. In the case of milling durum, the increase will be $43.50 per tonne. For feed barley in Pool A, the increase will be $23.50 per tonne, while the increase for designated barley will range from $29.50 to $36.50.
The original initial payments for wheat and durum, announced Aug. 2, were calculated as a percentage of the May Pool Return Outlook (PRO) in order to meet federal government requirements for recommendations to be submitted by mid-June. The barley initials were set directly by government without a CWB recommendation. Dramatic market price increases between May and August meant initial payments reflected a lower proportion of farmers’ expected final return. Since Aug. 2, there have been further market increases.
The adjustment payments, in dollars per tonne, for representative grades in each pool account are listed on the next page. 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. A complete listing of payments for all grades in dollars per tonne and dollars per bushel is posted on www.cwb.ca under “Famers” and “Farmer Payments”.
Grade |
Initial |
Adjustment |
Total payment |
2007-08 PRO |
No. 1 Canada Western Red Spring Wheat 12.5 |
$147.50 |
$28.50 |
$176.00 |
$296 |
No. 1 Canada Western Amber Durum 12.5 |
$144.00 |
$43.50 |
$187.50 |
$440 |
No. 1 CW Barley (Pool A) |
$107.00 |
$23.50 |
$130.50 |
$254 |
SS CW 2 Row Designated Barley |
$162.00 |
$36.50 |
$198.50 |
$290 |
SS CW 6 Row Designated Barley |
$144.00 |
$29.50 |
$173.50 |
$261 |
Farmers who delivered wheat, durum, barley and designated barley to the CWB between Aug. 1, 2007 and Oct. 3, 2007 will receive an adjustment payment. The payments will be mailed by Oct. 19, 2007 or received by direct deposit on Oct. 16, 2007. Farmers who wish to defer payments have until Oct. 10, 2007 to notify the CWB by calling 1-800-275-4292.
Initial payments should not be confused with monthly 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 year.
During the crop year, the CWB regularly reviews the initial payments and recommends adjustment payments if market conditions and sales progress warrant. The Government of Canada guarantees initial payments and therefore approves the level at which they are set. The recommendation and approval process typically takes six to eight weeks.
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. The EPO allows farmers to receive an additional payment equal to 80, 90 or 100 per cent of the PRO, less a discount, within 10 business days.
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For more information, please contact:
Maureen Fitzhenry,
CWB media relations manager
(204) 983-3101
Cell: (204) 227-6927
maureen_fitzhenry@cwb.ca