Canada: CWB increased by $30.00 the initial payments for 2006/07 crop year malting barley
The Canadian Wheat Board announced October 27 that 2006-07 initial payments for barley and designated barley will increase effective November 2, 2006.
The increase in initial payments for wheat will be $11.05 to $17.50 per tonne, depending upon the grade and class. For feed barley in Pool A, the increase will be $10.50 per tonne, while the increase for designated barley will be $30.00 for both two-row and six-row varieties (figures in CA$ unless stated).
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.
No. 1 CW Barley (Pool A):
Initial payement: $74.00
Adjustment payment: $10.50
Total payment to date: $84.50
2006-07 Pool Return Outlook: $170.00
SS CW 2 Row Designated Barley
Initial payment: $117.00
Adjustment payment: $30.00
Total payment to date: $147.00
2006-07 Pool Return Outlook: $200.00
SS CW 6 Row Designated Barley
Initial payment: $111.00
Adjustment payment: $30.00
Total payment to date: $141.00
2006-07 pool Return Outlook: $186.00
Farmers who delivered barley and designated barley to the CWB between August 1, 2006 and November 1, 2006 will receive an adjustment payment. The payments will be mailed by November 17, 2006 or received by direct deposit on November 14, 2006. Farmers who wish to defer payments have until November 8, 2006 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 Pool Return Outlook (PRO).
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.
Torna
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