May 29, 2008

 

New programme offers more price options for Canadian wheat farmers

  

  

The Canadian Wheat Board, or CWB, said Wednesday (May 29, 2008) that it has launched a new year-round wheat-pricing contract with no tonnage limit. 

 

The programme, called Flexpro will be in place for the 2008/09 crop year that begins Aug. 1.

 

Under the programme, farmers can pick their own market-based prices on any day throughout the crop year.

 

They simply sign up their desired tonnage, with no maximum limit at sign-up, between June 23 and July 28, 2008.

 

Then, they lock in a price any business day from Aug. 1, 2008, to July 31, 2009. They can choose to offer all their tonnage at once or price different amounts on different days.

 

Other pricing options available from the CWB include:

 

- Fixed Price Contracts: Farmers choose a fixed price for wheat or durum, with tonnage signed up between Feb. 25 and Oct. 31, 2008.

 

- Basis Price Contracts: Producers lock in a basis and futures value for their wheat at different times. For 2008-09, the period to lock in futures values runs from Sept. 4, 2007 to Oct. 31, 2008. The basis portion can be locked in between Feb. 25 and Oct. 31, 2008.

 

- Early Payment Options: To help manage cash-flow, farmers can access 80, 90 or 100 percent of the Pool Return Outlook for board grain (less a discount) shortly after delivery. Available early-payment values depend on what time of year producers deliver.

 

 "Farmers have told us they want as much flexibility as possible in the way they price and get paid for their grain," said CWB President and CEO Ian White in a release. "FlexPro is the latest addition to a suite of Producer Payment Options specifically designed in response to the business needs of producers, whether they're focused on maximizing returns, minimizing risk or managing cash flow."