Ontario Wheat Growers Get Interim Payment

OTTAWA - May 24/02 - SNS -- Wheat producers in Ontario will get an immediate CDN$15 per metric ton (MT) interim payments from the Ontario Wheat Producers Marketing Board.

Though the marketing board expects to make a final payment during harvest, it applied to the federal government for approval to make an interim payment in an effort to help wheat growers in the province cover seed, fertilizer and other up front expenses related to planting.

The board normally makes an initial payment of between 65% and 70% of the estimated final result for marketing wheat under the pools it operates. The interim payment represents roughly 18% of the expected final result for the pool, with the final payment expected to account for the last 10% to 12% of the marketing result.

In order to make the interim payment, the board applied through the Price Pooling Program under the authority of the Agricultural Marketing Programs Act (AMPA). This allowed the board to get the credit facilities needed to make the payment to growers.

Though the loan needed to make the interim payment is guaranteed by Canada's federal government, such approvals are not made unless the marketing board can demonstrate there will be enough money left in the pool to repay the money to the bank.

Under these circumstances, it was surprising to see Canada's agriculture minister Lyle Vanclief not only take credit for the interim payment, but also falsely describe it as an increase in the size of the initial payment.