CWB FINAL PAYMENTS

[Incognito]

The Canadian Wheat Board today announced the final payments that farmers will receive for durum, feed and designated barley marketed by the CWB in the 2002-03 crop year, which began August 1, 2002 and ended July 31, 2003. There will be no final payment for wheat.
Final payments represent the balance of the money owing to farmers after their grain has been sold by the CWB, and after operating costs have been deducted. The cheques, dated December 12, 2003, were mailed December 12, 2003 and received by direct deposit on December 12, 2003 as well.

Final payments, in dollars per tonne, for the base grades in each pool account are listed below. The total payment is based on the value of grain in store at Vancouver or the St. Lawrence.


Full information is available below:

http://www.cwb.ca/en/contracts/farmer_payments/2003/tonne-final/index.jsp

[TOM4CWB]

Charlie;

I wonder just how much the buy-back on a 1CWRS 13.5 was in the first week of October 2002, $200/t. plus... and they got back $63/t in November...

How could anyone could make a profitable PDsale while paying the CWB pooling accounts over $3.50/bu through the PD buyback scheme.

This is how we "Canadians" reward a good business and marketing decision, and reward this person who wise enough to sell at the high of the market...

PUT $3.50/bu in the CWB pooling account to reduce the federal deficit on that account, so they wouldn't have to pay so much!

NOW THAT IS RISK MANAGEMENT?

[charliep]

Every farmer (and the federal) should thank anyone who did a producer direct sale from preventing the wheat excluding durum deficit from being even bigger.

Big time lossers last year.

1) Anyone (including organic farmers) who did producer direct sales).

2) Anyone who was forced to buy out of a producer pricing option contract.

3) Anyone who signed a CWB basis contract after June PRO (the CWB changed their basis policy this year so more consistent).

4) A decision based on profit/other risk stategies but anyone who signed a fixed price contract prior to July 31/02.

Winners were:

1) Anyone who used the early pricing option between the September and November PRO forecasts (were expensive but paid).

2) Anyone who signed a basis contract and pulled the trigger to convert to a fixed price contract between September to December.

[TOM4CWB]

Charlie;

My question just like yours, is what accounting of risk management performance on PPO's does the CWB do?

Something to watch...

THE PPO sales value is the pool price, does this mean the federal guarantee paid out on PPO purchases of wheat from farmers like me?

[charliep]

Good question. No answer (actually 99 % chance that since the PPO is outside the pool, the answer is no).

A similar question could be asked about the interest income from previous years sales. Don't know why but I think this amount is about $85 mln or $10/tonne.