CWB Paying Storage For Hi-Pro Wheat

WINNIPEG - Jan 23/08 - SNS -- The Canadian Wheat Board (CWB) will pay western Canadian farmers up to CDN $15 per metric ton (MT) to store their best wheat in reserve for their top customers. In its second year, the CWB's Wheat Storage Program (WSP) has been expanded to more delivery points across Western Canada.

Sign-up began yesterday for the program, which seeks to preserve up to 150,000 MT of Canada's best spring wheat from the 2007 crop. Farmers will receive an extra $15 MT for No. 1 Canada Western Red Spring (CARS) wheat with 15% protein or higher. For wheat with 14.5% to 14.9% protein, farmers can get an additional $10 MT. There are also storage payments of $1 MT per month. Should these payments increase during the crop year, farmers who signed up early will be paid the difference.

Under the program, farmers reserve grain from good harvests to offset the risk of being unable to supply premium customers during years when the crop is of lower quality or when stocks are reduced. The CWB says setting aside top-quality wheat is particularly important for years when poor growing conditions make these supplies in high demand.

In recognition that on-farm storage space is at a premium, farmers will also be offered an offsetting delivery opportunity for equal tonnage of other wheat from their 2008-09 crop. Producers who sign up wheat for the program can choose to price their grain into either the current pool or the 2008-09 pool.

The CWB has this year expanded the WSP to all delivery points across Western Canada that have access to high-quality spring wheat and are capable of loading 25-, 50- or 100-car blocks. Farmers sign up through their local elevator agents. Producer car loaders are also eligible for the program. Participating farmers need to submit a grain sample to their elevator (or to the CWB in the case of producer cars) to be eligible for payment.