April 21,2008
Dear Sir/Madam:
Over the course of the 2007-08 crop year, markets have rallied to unprecedented levels. Higher returns from CWB sales have been captured in the pool accounts.
The latest initial price increase effective April 17,2008 will result in the reference grade for your contract exceeding your contract price. As of April 14, 2008 and expecting full delivery against your fully priced contracts, we estimate you will be overpaid $XXX.XX.
Your options for repayment are as follows:
1. Ask your local elevator agent to take a deduction from payments for any future deliveries, including non-board grains, for repayment. Not all grain companies have agreed to make this voluntary repayment deduction. Please check with your agent.
2. Send a cheque payable to the CWB. Write your Producer ID number and PPO contract number on the cheque and include a note indicating you would like to apply the amount against your overpayment.
3. Pay with you credit card. Call a CWB representative at 1-800-275-4292.
4. Have these amounts deducted from all future CWB payments beginning immediately.
<b>If your overpayment is not retired by October 31,2008, you will not be eligible to sign up for future PPO's until the balance of the overpayment is repaid.</b>
PPO contracts require deliveries to be applied against the contract at time of settlement. The CWB will allow application of pool deliveries to PPO contracts until June 13, 2008.
Your contract offers you the option to buy out the outstanding contracted tonnage based on current market values. Given the rise in market values over the year, buyouts are in the range of $50 to $290 per tonne depending on market and class of grain. The CWB requires 100-per-cent application of deliveries against PPO contracts. Pricing damages on any shortfall amounts will be assessed based on July 21 market values.
You're invited to contact the CWB between 8 a.m. and 6 p.m. Central (Winnipeg) Time each business day.
Reference:
Mel Pawlyk
Manager, Producer Payment Options
Dear Sir/Madam:
Over the course of the 2007-08 crop year, markets have rallied to unprecedented levels. Higher returns from CWB sales have been captured in the pool accounts.
The latest initial price increase effective April 17,2008 will result in the reference grade for your contract exceeding your contract price. As of April 14, 2008 and expecting full delivery against your fully priced contracts, we estimate you will be overpaid $XXX.XX.
Your options for repayment are as follows:
1. Ask your local elevator agent to take a deduction from payments for any future deliveries, including non-board grains, for repayment. Not all grain companies have agreed to make this voluntary repayment deduction. Please check with your agent.
2. Send a cheque payable to the CWB. Write your Producer ID number and PPO contract number on the cheque and include a note indicating you would like to apply the amount against your overpayment.
3. Pay with you credit card. Call a CWB representative at 1-800-275-4292.
4. Have these amounts deducted from all future CWB payments beginning immediately.
<b>If your overpayment is not retired by October 31,2008, you will not be eligible to sign up for future PPO's until the balance of the overpayment is repaid.</b>
PPO contracts require deliveries to be applied against the contract at time of settlement. The CWB will allow application of pool deliveries to PPO contracts until June 13, 2008.
Your contract offers you the option to buy out the outstanding contracted tonnage based on current market values. Given the rise in market values over the year, buyouts are in the range of $50 to $290 per tonne depending on market and class of grain. The CWB requires 100-per-cent application of deliveries against PPO contracts. Pricing damages on any shortfall amounts will be assessed based on July 21 market values.
You're invited to contact the CWB between 8 a.m. and 6 p.m. Central (Winnipeg) Time each business day.
Reference:
Mel Pawlyk
Manager, Producer Payment Options
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