New CWB Producer Pricing Options

[tclark]

I'm trying to confirm with the CWB that you can price wheat with a FPC on wheat delivered in 00/01 crop year. I know you can price into the next pool, but I haven't seen you can use FPC, or is that what you actually did -Tom4cwb. I have some Series B CPS that I would probably sell that would net about $3.60/bu - ($218-41-45). I'm thinking of using FPC for my off the combine wheat sales. Net of #1CWRS 13.5 at $4.85 looks pretty attractive.

[charliep]

Tclark

You can the same process you do now when deferring your payments into a new crop year - deliver on old crop contracts, put your grain on a storage ticket until Aug. 1 and use new crop pricing/pooling alternatives. The only issue I can see is the willingness of elevator companies to allow farmers to put their grain on storage tickets 4 months ahead of new crop (you likely will have to pay storage). If the CWB puts a termination on the "B" series (not likely for CPS wheat given slow calls to date), then you may get squeezed to deliver.

You are likely wanting to hear the above directly from the CWB. I would call the CWB toll free (800 ASK 4CWB) or email them with your question. I use both these alternatives when I have questions.

[TOM4CWB]

tclark,

I specifically asked Ken Ritter this question at Forestberg, as the CWB had been hinting that they were going to stop the interyear swithching.

Ken Ritter's response was that trying to stop this practice would be nearly impossible. The result was that the CWB accepts this practice, the same as swithching pool crop years.

Normally, most grain co's will allow 90 days free storage, which has been the practice in previous years.