Newsroom
2006
Initial payments for 2006-07 crop year increased
Winnipeg - The CWB today announced that 2006-07 initial payments for wheat, durum, feed and designated barley will increase effective December 21, 2006.
The increase in initial payments for wheat will range from zero to $29 per tonne, depending upon the grade and class. In the case of durum, the increase will range from $1 to $27 per tonne. For feed barley in Pool A, the increase will be $60.50 per tonne, while the increase for designated barley will be $27 for two-row and $20 for six-row varieties.
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 |
Adjustment |
Total payment |
2006-07 Pool Return Outlook |
No. 1 Canada Western Red Spring Wheat 12.5 |
$149.00 |
$15 |
$164.00 |
$214.00 |
No. 1 Canada Western Amber Durum 12.5 |
$140.00 |
$17.00 |
$157.00 |
$208.00 |
No. 1 CW Barley (Pool A) |
$79.50 |
$60.50 |
$145.00 |
$177.00 |
SS CW 2 Row Designated Barley |
$147.00 |
$27.00 |
$174.00 |
$203.00 |
SS CW 6 Row Designated Barley |
$141.00 |
$20.00 |
$161.00 |
$198.00 |
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 Farmer Contracts and Payments link) at www.cwb.ca.
Farmers who delivered wheat, durum, barley and designated barley to the CWB between Aug. 1, 2006 and Dec. 20, 2006 will receive an adjustment payment. The payments will be mailed by Jan. 12, 2007 or received by direct deposit on Jan. 9, 2007. Farmers who wish to defer payments have until Jan. 3, 2007 to notify the CWB by calling 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, intial 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.
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 allows farmers to receive an additional payment equal to 80, 90 and 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.