from cwb.ca
What is CWB’s plan for farmer ownership?
The plan will allow farmers to have an equity interest in CWB after privatization. This will allow farmers to benefit from CWB’s business activities. The plan is subject to successful privatization, and to CWB receiving all required legal, regulatory and governmental approvals. At this point in time, we anticipate a successful outcome to all of these steps.
Which farmers are eligible to participate in the plan?
Any farmer who delivers grain against a 2013-14 CWB contract is eligible to participate in the plan.
How does the plan work?
Post-privatization, eligible farmers will be entitled to an equity interest in CWB based on the volume of grain delivered by them to CWB. The nature and terms of such equity interest will be determined by CWB at the time of privatization.
At privatization, and, subject to compliance with all applicable laws and receipt of all necessary approvals, an eligible farmer’s equity interest will be based on the number of tonnes of grain he or she delivers to CWB, multiplied by the dollar value per tonne established annually by CWB. For tonnes signed up to 2013-14 programs, the dollar value per tonne is $5.00.
CWB has already begun tracking this information and there is no need for you to take any action to be eligible other than to sign up for CWB contacts.
Which tonnes are eligible?
Any tonnes delivered against CWB 2013-14 pools are eligible, regardless of when they are signed up. Any cash contracts signed up between August 1, 2013 and July 31, 2014 are also eligible.
What does it cost me to participate in the plan?
Nothing. CWB will continue to buy and sell your grain at market price.
What do I have to do to join the plan?
Nothing at this time. CWB will track your contracts and deliveries commencing August 1, 2013, and after privatization, CWB will provide you with the applicable information required for you to determine if you would like to accept the equity interest.
When will privatization occur?
The Marketing Freedom for Grain Farmers Act mandates that CWB present a plan for privatization to government by 2016, to be implemented by 2017. CWB is interested in fast-tracking our privatization plans, and intends to beat that deadline.
Will CWB remain fully Canadian-owned?
While the full ownership complement is yet to be determined, CWB will continue to have a Canadian focus, and farmer ownership of CWB will allow farmers to participate in all levels of the value chain.
Farmer Ownership Disclosure
Canadian Wheat Board (“CWB”) has established a plan (the “Farmer Equity Plan”) which will
further align the interests of CWB with the producers who deliver grain to CWB commencing on
or after August 1, 2013 (“Eligible Producers”) in the event that CWB is privatized in the future.
If a CWB privatization occurs, CWB will seek to implement an arrangement (subject to all
required legal, regulatory and governmental approvals) whereby Eligible Producers would be
entitled to participate (post-privatization) directly or indirectly (on such terms as determined by
CWB) in an equity interest in CWB (based upon the volume of grain delivered by them to
CWB). CWB will keep a record of the names of the Eligible Producers and the amount of grain
that they have delivered to CWB, commencing August 1, 2013. If a privatization occurs, and
subject to compliance with all applicable laws and receipt of all necessary approvals, an Eligible
Producer’s equity interest will be based on the number of metric tonnes of grain delivered to
CWB by such Eligible Producer multiplied by a dollar value per metric tonne established by
CWB in its sole discretion on an annual basis. The dollar value per metric tonne for the 2013-
2014 crop year is $5.00.
There is no guarantee that Eligible Producers will ever derive any benefit from the Farmer
Equity Plan and the Farmer Equity Plan is subject to a number of contingencies, including
without limitation, the following:
(i) Despite CWB’s intention to privatize, there can be no assurance that a
privatization will occur;
(ii) If a privatization occurs, there can be no assurance that CWB will receive the
required approvals to enable Eligible Producers to participate directly or
indirectly in such equity interest in CWB;
(iii) While CWB believes that the equity interest in CWB to which the Eligible
Producer will be entitled if, as and when a privatization occurs will have value,
there can be no assurance of the value of such equity interest in CWB;
(iv) In the event that CWB receives approval to privatize and Eligible Producers
become entitled to receive an equity interest:
(A) the receipt of such equity interest by Eligible Producers will be subject
to applicable laws, including securities laws;
(B) prior to the completion of the privatization transaction, CWB will
disclose to Eligible Producers the details of such privatization.
Participation by Eligible Producers will be voluntary and Eligible
Producers will have a reasonable opportunity to consider the details of
such privatization and a reasonable opportunity to obtain advice from
their independent advisors to the extent that such Eligible Producers
consider necessary or advisable; and
(C) there can be no assurance of the value, if any, of an Eligible
Producer’s interest in CWB at the time of privatization or thereafter.
What is CWB’s plan for farmer ownership?
The plan will allow farmers to have an equity interest in CWB after privatization. This will allow farmers to benefit from CWB’s business activities. The plan is subject to successful privatization, and to CWB receiving all required legal, regulatory and governmental approvals. At this point in time, we anticipate a successful outcome to all of these steps.
Which farmers are eligible to participate in the plan?
Any farmer who delivers grain against a 2013-14 CWB contract is eligible to participate in the plan.
How does the plan work?
Post-privatization, eligible farmers will be entitled to an equity interest in CWB based on the volume of grain delivered by them to CWB. The nature and terms of such equity interest will be determined by CWB at the time of privatization.
At privatization, and, subject to compliance with all applicable laws and receipt of all necessary approvals, an eligible farmer’s equity interest will be based on the number of tonnes of grain he or she delivers to CWB, multiplied by the dollar value per tonne established annually by CWB. For tonnes signed up to 2013-14 programs, the dollar value per tonne is $5.00.
CWB has already begun tracking this information and there is no need for you to take any action to be eligible other than to sign up for CWB contacts.
Which tonnes are eligible?
Any tonnes delivered against CWB 2013-14 pools are eligible, regardless of when they are signed up. Any cash contracts signed up between August 1, 2013 and July 31, 2014 are also eligible.
What does it cost me to participate in the plan?
Nothing. CWB will continue to buy and sell your grain at market price.
What do I have to do to join the plan?
Nothing at this time. CWB will track your contracts and deliveries commencing August 1, 2013, and after privatization, CWB will provide you with the applicable information required for you to determine if you would like to accept the equity interest.
When will privatization occur?
The Marketing Freedom for Grain Farmers Act mandates that CWB present a plan for privatization to government by 2016, to be implemented by 2017. CWB is interested in fast-tracking our privatization plans, and intends to beat that deadline.
Will CWB remain fully Canadian-owned?
While the full ownership complement is yet to be determined, CWB will continue to have a Canadian focus, and farmer ownership of CWB will allow farmers to participate in all levels of the value chain.
Farmer Ownership Disclosure
Canadian Wheat Board (“CWB”) has established a plan (the “Farmer Equity Plan”) which will
further align the interests of CWB with the producers who deliver grain to CWB commencing on
or after August 1, 2013 (“Eligible Producers”) in the event that CWB is privatized in the future.
If a CWB privatization occurs, CWB will seek to implement an arrangement (subject to all
required legal, regulatory and governmental approvals) whereby Eligible Producers would be
entitled to participate (post-privatization) directly or indirectly (on such terms as determined by
CWB) in an equity interest in CWB (based upon the volume of grain delivered by them to
CWB). CWB will keep a record of the names of the Eligible Producers and the amount of grain
that they have delivered to CWB, commencing August 1, 2013. If a privatization occurs, and
subject to compliance with all applicable laws and receipt of all necessary approvals, an Eligible
Producer’s equity interest will be based on the number of metric tonnes of grain delivered to
CWB by such Eligible Producer multiplied by a dollar value per metric tonne established by
CWB in its sole discretion on an annual basis. The dollar value per metric tonne for the 2013-
2014 crop year is $5.00.
There is no guarantee that Eligible Producers will ever derive any benefit from the Farmer
Equity Plan and the Farmer Equity Plan is subject to a number of contingencies, including
without limitation, the following:
(i) Despite CWB’s intention to privatize, there can be no assurance that a
privatization will occur;
(ii) If a privatization occurs, there can be no assurance that CWB will receive the
required approvals to enable Eligible Producers to participate directly or
indirectly in such equity interest in CWB;
(iii) While CWB believes that the equity interest in CWB to which the Eligible
Producer will be entitled if, as and when a privatization occurs will have value,
there can be no assurance of the value of such equity interest in CWB;
(iv) In the event that CWB receives approval to privatize and Eligible Producers
become entitled to receive an equity interest:
(A) the receipt of such equity interest by Eligible Producers will be subject
to applicable laws, including securities laws;
(B) prior to the completion of the privatization transaction, CWB will
disclose to Eligible Producers the details of such privatization.
Participation by Eligible Producers will be voluntary and Eligible
Producers will have a reasonable opportunity to consider the details of
such privatization and a reasonable opportunity to obtain advice from
their independent advisors to the extent that such Eligible Producers
consider necessary or advisable; and
(C) there can be no assurance of the value, if any, of an Eligible
Producer’s interest in CWB at the time of privatization or thereafter.