Just making sure everyone is aware of the new CWB program which allows top up of cash advances.
News release
New CWB program enhances farmers' cash flow before delivery
Winnipeg – The CWB today launched a pre-delivery top-up program (PDT) to provide farmers with access to a greater portion of the value of their grain before delivery. The funds the CWB will make available through this new program will top-up the amount of money farmers receive through the fall cash advance program.
"Farmers want enhanced cash flow," said Bill Nicholson, the farmer-elected director for western Manitoba who participated in the official launch of the program today on a farm in Reston, Manitoba. "Getting more for their wheat before delivery gives farmers more flexibility in how they market their other crops."
Farmers will be now able to access close to 80 per cent of their initial payment through a combination of the federal cash advance program and the top-up amount. Amounts received under the PDT will be repaid through deductions on farmers' adjustment, interim and final payments. Farmers will pay interest - at prime - on money received through the program and they can repay at any time without penalty. Rates for the program will be announced before the program start date of September 1, 2003.
Flanked by farmers who were consulted in the program's design, Nicholson noted that for 2003-04 this is a pilot program on select classes of wheat – CWRW, CWES, CPSR, CPSW, CWHW and CWSWS. "If the program is successful, it may well be expanded to other classes of wheat and other grains marketed through the CWB," he said.
Deliveries for which farmers wish to receive a pre-delivery top-up will have to be committed to a special CWB delivery contract that will be designated as Series M. Delivery calls for Series M will be similar to Series A delivery calls.
Perhaps this is an indication of how low CWB initial payments are likely to be (keeping in mind these payments are guaranteed by the federal government). It also only applies to alternative wheats (CPS, SWES, CWSWS, CWHW) and not CWRS or CWAD. You will also have to sign a delivery contract with calls likely to be based on the "A" series
I have a whole bunch of questions about the program including how long it will be offered (is there a deadline for applying for normal cash advances)? What happens if you are out grade specification (eg. feed) or decide to deliver non board? Is this program provide cash advance above the current maximum? If a farmer is at their maximum cash advance already, can they use this program to source additional funds?
I will do some digging. What are others thoughts on this program?
News release
New CWB program enhances farmers' cash flow before delivery
Winnipeg – The CWB today launched a pre-delivery top-up program (PDT) to provide farmers with access to a greater portion of the value of their grain before delivery. The funds the CWB will make available through this new program will top-up the amount of money farmers receive through the fall cash advance program.
"Farmers want enhanced cash flow," said Bill Nicholson, the farmer-elected director for western Manitoba who participated in the official launch of the program today on a farm in Reston, Manitoba. "Getting more for their wheat before delivery gives farmers more flexibility in how they market their other crops."
Farmers will be now able to access close to 80 per cent of their initial payment through a combination of the federal cash advance program and the top-up amount. Amounts received under the PDT will be repaid through deductions on farmers' adjustment, interim and final payments. Farmers will pay interest - at prime - on money received through the program and they can repay at any time without penalty. Rates for the program will be announced before the program start date of September 1, 2003.
Flanked by farmers who were consulted in the program's design, Nicholson noted that for 2003-04 this is a pilot program on select classes of wheat – CWRW, CWES, CPSR, CPSW, CWHW and CWSWS. "If the program is successful, it may well be expanded to other classes of wheat and other grains marketed through the CWB," he said.
Deliveries for which farmers wish to receive a pre-delivery top-up will have to be committed to a special CWB delivery contract that will be designated as Series M. Delivery calls for Series M will be similar to Series A delivery calls.
Perhaps this is an indication of how low CWB initial payments are likely to be (keeping in mind these payments are guaranteed by the federal government). It also only applies to alternative wheats (CPS, SWES, CWSWS, CWHW) and not CWRS or CWAD. You will also have to sign a delivery contract with calls likely to be based on the "A" series
I have a whole bunch of questions about the program including how long it will be offered (is there a deadline for applying for normal cash advances)? What happens if you are out grade specification (eg. feed) or decide to deliver non board? Is this program provide cash advance above the current maximum? If a farmer is at their maximum cash advance already, can they use this program to source additional funds?
I will do some digging. What are others thoughts on this program?
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