CWB Puts Interest Earnings in Contingency Fund

WINNIPEG - Jul 26/02 - SNS -- The Canadian Wheat Board is avoiding paying western Canada barley producers CDN $5.5 million earned as interest on credit sales made several years ago.

Instead, it wants to hold consultations with growers as to how to spend the money. There was no estimate of the cost of the consultative process nor an explanation of how it will be undertaken.

The board's position is influenced by the fact barley deliveries are unusually low this year and that the money was earned on sales spanning the period between the late 1970s and early 1980s. Roughly $2.5 million out of a potential $8 million in interest earnings has already gone into the feed barley pool for the 2001-02 marketing year. The balance is going into a contingency fund instead of being paid out to growers who delivered to the pools in the previous couple of years.

The board noted interest earnings across the four pool accounts were $75.2 million in 2000-01 and are expected to be about the same in the current crop year.

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