Hi Guys,
This is what I have gotten for a procedure but still unsure of elevator costs and what happens with freight deductions. Interesting that you have to go by contracts and calls, although I wa
CWB Producer Direct Sales
The intent of the Producer Direct Sale (PDS) process is to give farmers the opportunity to capture U.S. market premiums they identify, while still maintaining the integrity of the pooling system.
This ensures that all farmers have equal access to returns from premium markets and at the same time allowing an individual farmer the opportunity to capture marketing advantages. PDSs are treated similar to an accredited exporter approaching the Canadian Wheat Board (CWB) with a bid for Canadian grain.
To apply for a PDS, the following criteria have been established.
1. The farmer needs a valid CWB delivery contract and delivery permit book.
2. A delivery authorization and call for the grain must be in place. The CWB may issue an advance call for delivery.
3. The farmer or elevator manager (on behalf of the farmer) must obtain a daily producer direct export price (cash sales price) by calling the CWB at 1-800-275-4292. The CWB Sales department must verify the price quotes.
(Quotes for spring wheat are based off the Minneapolis futures prices and are quoted basis instore St. Lawrence / Vancouver. Other grains are based on North American competitive values).
4. Farmers must negotiate with grain companies as to administration charges. It is up to the farmer to decide if the PDS transaction is worthwhile. If the farmer proceeds with the PDS, the tonnes, grade and costs involved must be established.
5. Once a PDS transaction is agreed upon, the Grain Company must complete a sales contract with the CWB on behalf of the farmer.
6. Standard sales contract terms such as a 30-day delivery period and 5% tolerance on weight will apply. The sales contract is legally binding and requires the farmer / Grain Company to pay the difference between the CWB cash price and the initial payment to deliver the grain.
7. The Grain Company (on behalf of the farmer) must apply for an export permit from the CWB Export department (204-983-3569). The CWB must also be provided with the farmer's name, address, the Custom's port of exit, the destination, the consignee at final destination and the quantity and grade of grain to be exported.
NOTE: It is important to notify the CWB immediately if the Customs port of exit is to be changed. The CWB will take steps to ensure proper changes are made to the export license. Export permits expire sixty days from the date of issuance.
8. The CWB will provide the Grain Company with a sales contract and an export license and will also forward the necessary copies of the license to Canada Customs.
9. Farmers should also ensure the U.S. vendor obtains an end-user certificate from the USDA. It is the U.S. Government that demands these certificates to import Canadian wheat.
10. The Grain Company will issue a producer certificate to the farmer for the grain, which reflects the initial payment for the grade and tonnage of grain in the PDS transaction. The farmer is now eligible for all future adjustment, interim and final payments on that grain.
11. The Grain Company, on behalf of the farmer, is the accredited exporter and is responsible for contract execution. If the contract is not completed, the CWB will collect any monies due the CWB from the Grain Company.
12. Farmers should contact a Customs broker for information on U.S. duties. The U.S. Customs at the point of exit can be contacted for broker names.
NOTE: Farmers should be aware of the recent (March 2004) 14.15% duty on CW Red Spring, CPS Red and CW Extra Strong wheat. The importer of record is responsible to pay the duty.
13. The farmer and/or trucker transporting the grain for export must stop at Canada Customs to deliver two copies each of the export license and the bill of lading. Canada Customs will stamp and return one copy of each to the farmer/trucker and will return the second copy to the CWB. Failure to stop and report to Canada Customs is an offense under the Customs Act, and is subject to penalties under that Act
Reference: March 30, 2004
Producer Direct Sales
s told that this could be sped up.
This is what I have gotten for a procedure but still unsure of elevator costs and what happens with freight deductions. Interesting that you have to go by contracts and calls, although I wa
CWB Producer Direct Sales
The intent of the Producer Direct Sale (PDS) process is to give farmers the opportunity to capture U.S. market premiums they identify, while still maintaining the integrity of the pooling system.
This ensures that all farmers have equal access to returns from premium markets and at the same time allowing an individual farmer the opportunity to capture marketing advantages. PDSs are treated similar to an accredited exporter approaching the Canadian Wheat Board (CWB) with a bid for Canadian grain.
To apply for a PDS, the following criteria have been established.
1. The farmer needs a valid CWB delivery contract and delivery permit book.
2. A delivery authorization and call for the grain must be in place. The CWB may issue an advance call for delivery.
3. The farmer or elevator manager (on behalf of the farmer) must obtain a daily producer direct export price (cash sales price) by calling the CWB at 1-800-275-4292. The CWB Sales department must verify the price quotes.
(Quotes for spring wheat are based off the Minneapolis futures prices and are quoted basis instore St. Lawrence / Vancouver. Other grains are based on North American competitive values).
4. Farmers must negotiate with grain companies as to administration charges. It is up to the farmer to decide if the PDS transaction is worthwhile. If the farmer proceeds with the PDS, the tonnes, grade and costs involved must be established.
5. Once a PDS transaction is agreed upon, the Grain Company must complete a sales contract with the CWB on behalf of the farmer.
6. Standard sales contract terms such as a 30-day delivery period and 5% tolerance on weight will apply. The sales contract is legally binding and requires the farmer / Grain Company to pay the difference between the CWB cash price and the initial payment to deliver the grain.
7. The Grain Company (on behalf of the farmer) must apply for an export permit from the CWB Export department (204-983-3569). The CWB must also be provided with the farmer's name, address, the Custom's port of exit, the destination, the consignee at final destination and the quantity and grade of grain to be exported.
NOTE: It is important to notify the CWB immediately if the Customs port of exit is to be changed. The CWB will take steps to ensure proper changes are made to the export license. Export permits expire sixty days from the date of issuance.
8. The CWB will provide the Grain Company with a sales contract and an export license and will also forward the necessary copies of the license to Canada Customs.
9. Farmers should also ensure the U.S. vendor obtains an end-user certificate from the USDA. It is the U.S. Government that demands these certificates to import Canadian wheat.
10. The Grain Company will issue a producer certificate to the farmer for the grain, which reflects the initial payment for the grade and tonnage of grain in the PDS transaction. The farmer is now eligible for all future adjustment, interim and final payments on that grain.
11. The Grain Company, on behalf of the farmer, is the accredited exporter and is responsible for contract execution. If the contract is not completed, the CWB will collect any monies due the CWB from the Grain Company.
12. Farmers should contact a Customs broker for information on U.S. duties. The U.S. Customs at the point of exit can be contacted for broker names.
NOTE: Farmers should be aware of the recent (March 2004) 14.15% duty on CW Red Spring, CPS Red and CW Extra Strong wheat. The importer of record is responsible to pay the duty.
13. The farmer and/or trucker transporting the grain for export must stop at Canada Customs to deliver two copies each of the export license and the bill of lading. Canada Customs will stamp and return one copy of each to the farmer/trucker and will return the second copy to the CWB. Failure to stop and report to Canada Customs is an offense under the Customs Act, and is subject to penalties under that Act
Reference: March 30, 2004
Producer Direct Sales
s told that this could be sped up.
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