Newsroom
2003
New CWB program enhances farmers' cash flow before delivery
July 22, 2003
Winnipeg – The CWB today launched a pre-delivery top-up program (PDT) to provide farmers with access to a greater portion of the value of their grain before delivery. The funds the CWB will make available through this new program will top-up the amount of money farmers receive through the fall cash advance program.
"Farmers want enhanced cash flow," said Bill Nicholson, the farmer-elected director for western Manitoba who participated in the official launch of the program today on a farm in Reston, Manitoba. "Getting more for their wheat before delivery gives farmers more flexibility in how they market their other crops."
Farmers will be now able to access close to 80 per cent of their initial payment through a combination of the federal cash advance program and the top-up amount. Amounts received under the PDT will be repaid through deductions on farmers' adjustment, interim and final payments. Farmers will pay interest - at prime - on money received through the program and they can repay at any time without penalty. Rates for the program will be announced before the program start date of September 1, 2003.
Flanked by farmers who were consulted in the program's design, Nicholson noted that for 2003-04 this is a pilot program on select classes of wheat – CWRW, CWES, CPSR, CPSW, CWHW and CWSWS. "If the program is successful, it may well be expanded to other classes of wheat and other grains marketed through the CWB," he said.
Deliveries for which farmers wish to receive a pre-delivery top-up will have to be committed to a special CWB delivery contract that will be designated as Series M. Delivery calls for Series M will be similar to Series A delivery calls.
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
tel: (204) 983-4497
cell: (204) 223-4281
Click here for the pre-delivery top-up program brochure and Bill Nicholson's comments.