Newsroom
2003
CWB introduces new early payment program to boost initial prices at year-end news conference
August 7, 2003
Winnipeg – The chair of the CWB’s farmer-controlled board of directors today announced details of a new early payment option (EPO) that gives farmers access to 80 per cent of the Pool Return Outlook for their wheat and feed barley when they deliver. Speaking at the CWB’s year-end news conference, Chair Ken Ritter said the program is intended to provide farmers with much needed cash flow.
“We think that this new program can make a real difference for farmers who need more than what the current initial payments offer,” Ritter said.
The 80 per cent EPO will operate much the same as existing EPOs, which currently guarantee farmers 90 per cent of the PRO. However, Ritter noted, this new program will be cheaper to use because of the lower risk. “Farmers who choose to participate in the 80 per cent EPO will pay approximately $1 per tonne to cover risk, time-value of money and administration costs,” he said.
Ritter also announced that a 90 per cent EPO program for durum will be introduced on August 28, when the monthly PRO is released. All four of the crops marketed by the CWB, wheat, durum wheat, feed barley and designated barley, are now covered by the 90 per cent EPO.
During the news conference, President and CEO Adrian Measner reviewed the specific challenges of the 2002-03 crop year, including the record drought and volatility in international grain and currency markets. Also discussed were the major issues on the CWB’s 2002-03 agenda including American trade harassment of western Canadian farmers through the launching of three separate trade challenges, preventing the introduction of Roundup Ready wheat and transportation issues.
Looking ahead to the 2003-04 crop year, Measner noted that while there are recent concerns regarding dryness, crop prospects have still improved over last year. “Western Canadian farmers produce the world’s best wheat, durum and barley,” he said. “We look forward to returning to more traditional levels of business with the many customers around the world who rely on our products.”
The audio Web cast of the end-of-crop-year news conference is available on the CWB Web site, www.cwb.ca.
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 marketing costs, to Prairie farmers.
For more information, please contact:
Rhéal Cenerini
Communications consultant
Winnipeg, MB
tel: (204) 983-4497