CWB Tweaks Contract Options

WINNIPEG - Feb 27/04 - SNS -- The Canadian Wheat Board (CWB) tweaked its Fixed Price Contracts (FPC) and Basis Payment Contracts (BPC) in hopes of making the contracts easier for growers to use.

The most significant change is the extension of the sign-up deadline for the FPC and BPC for wheat and the FPC for feed barley and durum wheat until October 31, 2004, a full three months later than the July 31 deadline that had been in place since the programs' inception.

The CWB said this enables farmers to choose a fixed price or basis level later in the crop year. The CWB will adjust the basis to reflect the change in risk resulting from sign-up after the start of the pool year.

"By extending the sign-up deadline, we're giving farmers more options," said Ken Ritter, chair of the board. "Most years, you'll have your wheat and barley in the bin by October 31, so you'll know exactly the quantity and quality of your crop. This makes it easier to decide whether to stay in the pool, choose a locked in fixed price contract or take a basis contract which tracks the highs and lows of the market."

The 100,000 metric ton (MT) limit for the durum FPC program will be maintained and a 200,000 MT limit for feed barley will also be established.

The enhancements follow a series of consultations held with farmers on how to strengthen the Producer Payment Options (PPOs) and build on the work done since the PPOs were first introduced four years ago.

"We are committed to providing farmers who want these payment and pricing options with greater flexibility while maintaining the advantages of pooling and western Canadian farmers' marketing clout by selling through the single desk," Ritter said.

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