CWB introduces new wheat pricing option for farmers
May 28, 2008
Winnipeg – Prairie farmers have a new way to price their wheat, the CWB announced today. FlexPro, a year-round wheat pricing contract with no tonnage limit, has been developed in time for the new crop year, with sign-up beginning on June 23.
“Farmers have told us they want as much flexibility as possible in the way they price and get paid for their grain,” said CWB President and CEO Ian White. “FlexPro is the latest addition to a suite of Producer Payment Options specifically designed in response to the business needs of today’s producers, whether they’re focused on maximizing returns, minimizing risk or managing cash flow.”
Under FlexPro, farmers can pick their own market-based prices on any day throughout the crop year. Producers simply sign up their desired tonnage, with no maximum limit at sign-up, between June 23 and July 28, 2008. Then, they lock in a price any business day from August 1, 2008 to July 31, 2009. They can choose to offer all their tonnage at once or price different amounts on different days.
“Since 2001, when the CWB rolled out its very first Producer Payment Option, we have been constantly working to refine and improve the available mix of grain-pricing choices,” White said. “It has been a time of great change for this organization, led by a board of directors who are firmly focused on the business priorities of farmers.”
Like the other pricing options, FlexPro is available online through CWB e-Services, enabling farmers to sign up and monitor their contracts from their own computers. A target pricing service is also available on all Producer Payment Options. Detailed program information on the CWB’s Producer Payment Options is available at www.cwb.ca. A snapshot has been provided below:
FlexPro: a year-round pricing contract for wheat, newly introduced for the 2008-09 crop year. Sign-up runs from June 23 and July 28, 2008 with no tonnage limit. Producers lock in prices any day of the new crop year for all or part of the tonnage committed.
Fixed Price Contract: farmers choose a fixed price for wheat or durum, with tonnage signed up between February 25 and October 31, 2008.
Basis Price Contract: producers lock in a basis and futures value for their wheat at different times. For 2008-09, the period to lock in futures values runs from September 4, 2007 to October 31, 2008. The basis portion can be locked in between February 25 and October 31, 2008.
Early Payment Options: to help manage cash-flow, farmers can access 80, 90 or 100 per cent of the Pool Return Outlook for board grain (less a discount) shortly after delivery. Available early-payment values depend on what time of year producers deliver.
Farmers also have the option of being paid for all or part of their production through the CWB pool accounts, which return them the average price received from all sales made in a crop year, for their particular grade and class or grain.
May 28, 2008
Winnipeg – Prairie farmers have a new way to price their wheat, the CWB announced today. FlexPro, a year-round wheat pricing contract with no tonnage limit, has been developed in time for the new crop year, with sign-up beginning on June 23.
“Farmers have told us they want as much flexibility as possible in the way they price and get paid for their grain,” said CWB President and CEO Ian White. “FlexPro is the latest addition to a suite of Producer Payment Options specifically designed in response to the business needs of today’s producers, whether they’re focused on maximizing returns, minimizing risk or managing cash flow.”
Under FlexPro, farmers can pick their own market-based prices on any day throughout the crop year. Producers simply sign up their desired tonnage, with no maximum limit at sign-up, between June 23 and July 28, 2008. Then, they lock in a price any business day from August 1, 2008 to July 31, 2009. They can choose to offer all their tonnage at once or price different amounts on different days.
“Since 2001, when the CWB rolled out its very first Producer Payment Option, we have been constantly working to refine and improve the available mix of grain-pricing choices,” White said. “It has been a time of great change for this organization, led by a board of directors who are firmly focused on the business priorities of farmers.”
Like the other pricing options, FlexPro is available online through CWB e-Services, enabling farmers to sign up and monitor their contracts from their own computers. A target pricing service is also available on all Producer Payment Options. Detailed program information on the CWB’s Producer Payment Options is available at www.cwb.ca. A snapshot has been provided below:
FlexPro: a year-round pricing contract for wheat, newly introduced for the 2008-09 crop year. Sign-up runs from June 23 and July 28, 2008 with no tonnage limit. Producers lock in prices any day of the new crop year for all or part of the tonnage committed.
Fixed Price Contract: farmers choose a fixed price for wheat or durum, with tonnage signed up between February 25 and October 31, 2008.
Basis Price Contract: producers lock in a basis and futures value for their wheat at different times. For 2008-09, the period to lock in futures values runs from September 4, 2007 to October 31, 2008. The basis portion can be locked in between February 25 and October 31, 2008.
Early Payment Options: to help manage cash-flow, farmers can access 80, 90 or 100 per cent of the Pool Return Outlook for board grain (less a discount) shortly after delivery. Available early-payment values depend on what time of year producers deliver.
Farmers also have the option of being paid for all or part of their production through the CWB pool accounts, which return them the average price received from all sales made in a crop year, for their particular grade and class or grain.
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