Canada: The Canadian Wheat Board sets initial payments
The Canadian Wheat Board (CWB) set the 2006-07 initial payments for the various grades of wheat and barley. The payments are effective August 1, 2006 for deliveries into the 2006-07 pool accounts.
The initial payments, in CAD per tonne, for base grades in each pool account were listed with the anticipated final pool return for farmers, based on the CWB's July 27, 2006 Pool Return Outlook.
No. 1 Canada Western feed barley stood at $74 (2006/07 Initial payment) and $124 (2006/07 PRO). 2005/06 initial payment and PRO are respectively $72 and $127. For the designated Special Select Canada Western two-row barley, the 2006/07 initial payment and PRO are $117 and accordingly $174. The 2005/06 initial payment goes to $119 and PRO reaches $171. The designated six-row Special Select Canada Western barley 2006/07 initial payments and PRO are $111 and $168 respectively. The 2005/06 initial payments and PRO are $107 and $163 accordingly.
Initial payments represent the first 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.
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