CWB Initial Payments Increased Today

[charliep]

Just a note to highlight the federal government approved and the CWB announced adjustment payments today for the 2008/09 crop year.

Quote: "Initial payments for 2008-09 crop year increased
February 16, 2009

Winnipeg -- The CWB today announced that 2008-09 initial payments for wheat, durum and designated barley will increase effective February 19, 2009. The increase will be $30 per tonne for wheat, $25.80 for durum and $39 for designated barley. These payment value will apply to all grades and classes." End quote.

Comments.

1) Percentage of PRO is a good indication how the federal government and the CWB see risk. Malt barley is at 92 % of the Jan. PRO - a good indication of why the CWB is closing the pool and forcing all to the cashplus. 1CWRS 12.5 is 82 % of the PRO. 1CWAD 12.5 is 77 %.

2) Will be interesting to see what EPO offerings and premiums are this afternoon. Will note the EPO is still mentioned in the press release but I suspect there will be none available - discounts will be more than the difference between initial payments/PRO and the PRO minus premium. With initial payments higher, I assume the risk factor should be lower and the premiums decreased to reflect on the 90 and 100 % epo values for wheat and durum. Stay tuned.

[charliep]

Always amazed at CWB release timing. CWB annual report released last Wednesday. Initial payments released today. Weekly farm paper deadlines always Monday. Front page story?

[Fransisco]

You don't think they take out all those expensive full page ads just for the benefit of farmers?

[Fransisco]

Why would the press then want to do a story on the 300 some million dollars of farmers money the board gambled away last year(yawn...) when they can do one on the initial payment(yippee!!).

Farm journalism is not about informing the subscribers(farmers) it's about keeping the advertisers(CWB) happy.

[carebear300]

I thought that the federal government hac to approve the increase the increase in initial payments. If that is the case, and I am sure it is, the wheat board would be unable to increase the initial payments till they got their approval. So it could be the federal government's call to when it could be announced, and maybe planned to benefit their agenda. Now don't be biting my head off, just a thought from one not so informed as the rest of you.

[Fransisco]

Which would be...?

[carebear300]

I guess what I amk getting at is that the cwb does enough things wrong without dwelling on little details such as the timing of an announcement. In this particular case if my memory hasn't failed me altogether, the wheat board asked for an increase in initial payments in November already, and the federal government(who I voted for I must add) has been dragging their feet in granting approval. Now even if we all are for marketing choice including the federal government, it serves nobody's interests to deprive producers of money that they are entitled to any longer than necessary to protect the integrity of the pool acccount. Or am I wrong?

[redy2quit]

This has taken way to long to get out to farmers. Its a disgrace.
Well that's how I feel.

[gustgd]

just talked with the customer service rep on the CWB phone line about a Durum EPO with the initial at $7.56 and the pro at 9.80 or about 75% why would they need $1.48 to get 100% or .74 cents/bu to get 90%.

Question do they have NO confidence in their PRO or do they feel they have to repopulate the contingency fund all in one year?

[charliep]

Just to highlight the EPO premiums did not adjust today (in fact got more expensive to reflect the decline in the wheat markets today) in spite of the increase in initial payment.