Newsroom
2003
CWB introduces new pricing option for malting barley growers
June 18, 2003
Winnipeg – The CWB today announced a new pricing option for farmers growing malting barley by offering an Early Payment Option (EPO) for selected barley for the 2003-04 crop year.
“We now have EPOs available in three of the four CWB pool accounts – wheat, feed barley and malting barley,” said Ken Ritter, Chairman of the CWB’s farmer-controlled board of directors. “The EPOs help farmers by giving them much needed additional cash flow.”
“The EPO also provides farmers with an effective floor price,” Ritter noted. “They can get more for their grain, but they won’t get less.”
Farmers can sign up for the EPO between August 1 and November 28, 2003. Under the program, farmers would receive the initial payment upon delivery. Within 10 days, they would receive the difference between the initial payment and 90 per cent of the Pool Return Outlook (PRO), less a discount for risk, time value of money and administration costs.
Farmers in the program remain within the CWB malting barley pool account, and are therefore eligible for adjustment, interim or final payments that exceed the 90 per cent of the PRO.
Farmers whose selected barley contracts are later rejected can either buy out their EPO contracts or transfer all or a portion to an EPO for feed barley.
Farmers taking advantage of the EPO can commit all or a portion of their tonnes committed to a selected barley contract, with a 20-tonne minimum.
More information on the malting barley EPO and the CWB’s other pricing and marketing choice options is available on the CWB Web site or by calling 1-800-275-4292.
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.
For more information, please contact:
Rhéal Cenerini
Communications Consultant
Winnipeg, MB
(204) 983-4497