FPC's and BPC's Tonnage contracted

[craig]

Need some help. Is there anywhere you can find the amount of tonnage signed up under FPC's and BPC's. I quess there was a limit on DPC's and it was filled but not sure what that was. Numbers for last year would also be useful.

[chaffmeister]

go to:
http://www.cwb.ca/public/en/about/annual_report/

page 15 of the Annual Report has what I think you want

[craig]

Thanks chaffmeister

[craig]

Thanks chaffmeister

[craig]

The following is information from the annual report that might be of interest to those producers who use FPC's and BPC's. From the annual report 2005-2005.
Fix Price Contract's Contracted tonnage 948,985 Tonnes Wheat,388 Tonnes Durum,46 tonne designated barley, and 109 Tonnes feed Barley. Basis Price Contracts 222,376 Total tonnes. One time payment for commodity price increase to producers unable to fill there contracts about 5 Million. Net surplus from FPC and DPC ,sabout $35 Million. Transfer to contingency $27.5 million to Pool accounts about $7.5 million. Net result If producers who used the FPC and DPC had access to the net surplus( 35 millon) it would have represented about a $.80 bushel increase they would receive on grain sold or close to $30.00 per tonne. If they had access to the $7.5 Million moved in to the pool account it would represent about $6.40 a tonne or $.17 bushel( using wheat). Points to consider. Contingency fund is currently shown at $48 million and cannot exceed 50 Million. The books also show this as a liability.How can you show contingency as a liability. The surplus we are building with the high basis levels this year will likely all go into the pool accounts. Please check my numbers to see if I am reading this correctly.

[charliep]

Information on the FPC and BPC is in today's CWB release.

News release
Popularity soars among farmers for CWB market-based options: sign-up increases 600 per cent
Winnipeg -- More than 20,000 Prairie farmers chose to participate in market-based CWB Producer Payment Options this year, taking advantage of their ability to lock in prices based on futures markets or U.S. elevator prices for 3.5 million tonnes of grain.
The farmer sign-up for 2006-07 represents a six-fold increase over last year, with a 500-per-cent increase in grain tonnage committed for the CWB Fixed Price Contract (FPC), Basis Payment Contract (BPC) and Daily Price Contract (DPC) programs. The sign-up period for the FPC and BPC ended October 31.
"Farmers are gaining awareness and comfort with these innovative programs, introduced in 2000-01 specifically in response to their business needs," CWB president and CEO Adrian Measner said. "When the wheat markets rallied this year, many farmers recognized they had the ability to access those prices if they chose, while pooled returns remain an excellent alternative as well.
"There is now a full range of options to suit any farmers' business needs. It provides Prairie producers with the best of both worlds."
A total of 20,175 producers committed 3 541 655 tonnes of grain to the three programs in 2006-07. This compares to 3,181 farmers who signed up 710 590 tonnes last year. In 2004-05, 6,782 producers committed 1.2 million tonnes.
The FPC was the most popular option this year, with over 15,000 farmers choosing to lock in a futures value. The BPC, which provides an ability to lock in a basis level or futures value at different times, attracted over 2,000 producers and a 57-per-cent increase in grain committed compared to last year. The DPC, using values based on U.S. elevator prices, had reached its maximum program sign-up of 500 000 tonnes by July 31. To date, more than half of that grain has been committed and paid out.
The prices in these programs fairly reflect market values. The CWB offers daily values for the FPCs and BPCs, establishing a basis from the reference grade Pool Return Outlook (PRO), less forecasted futures, less a discount for risk, time value of money and administration. The FPC is calculated by combining the December basis to the futures each day. The DPC is offered as a flat price contract that is responsive to daily movements in the cash markets.
"These three programs – combined with our Early Payment Options, Guaranteed Delivery Contracts and our new pilot Delivery Exchange Contract – are all designed to give farmers the flexibility they need to run their businesses," Measner said. "Many farmers have expressed their support for these innovative additions to the CWB."

[silverback]

Choice, options, ... ha ha ha

So we had a choice between the pro or the fixed price contracts that were of a higher value than the pro. Hmmm, what should I do, hmmm...

I can sell through the board or through the board, I love this country.