Farmers of North America has reached an agreement to act as a grain sourcing agent for CWB.
Bill Martin, FNA’s vice-president of grain handling, said his organization will be paid for each tonne of grain it procures to a CWB pool contract.
That revenue, minus deductions, will be passed onto FNA members through the organization’s MPower Rewards program.
Martin did not share details of the procurement fee, but said FNA hoped to procure about 200,000 tonnes of grain on behalf of CWB pool programs before Feb. 15.
That is the sign-up deadline for CWB’s latest pool offerings: the Winter Pool and the Futures Choice Winter Pool.
“We have negotiated a rate with the CWB that we will be passing … back to our members through our MPower Rewards program,” Martin said.
“What we always try to do is get the very best deal that we can out of various suppliers and negotiate some type of rebate or discount for our membership,” Martin said.
“We view the CWB as a supplier like many others — in this case they are supplying international grain marketing services — and we saw an opportunity to capture some (additional value) … and pass it back to our membership.”
FNA members will get the benefits of CWB pooling plus additional incentives such as discounts on the price of farm chemicals covered under the MPower program.
For example, FNA members who commit grain to CWB pools will get a 20 cent per litre discount on eligible glyphosate products.
Additional incentives valued at $800 to $1,000 will be offered to farmers who sign up 90 tonnes or more, although details of that incentive were not available by the deadline for this issue of The Western Producer.
A joint FNA and CWB statement last week called the marketing arrangement a good fit for both organizations.
It will help CWB source more grain to fulfill its overseas sales obligations.
CWB’s sales have exceeded its ability to procure grain directly from farmers.
A significant portion of CWB’s overseas sales volumes has been procured from other grain companies that buy western farmers’ grain.
FNA is well situated to assist CWB with grain procurement.
The Saskatoon-based organization has 10,000 members across Canada, including 7,000 in Western Canada.
Martin said the agreement will ultimately benefit all farmers by augmenting CWB grain handling volumes and sustaining a more competitive marketing environment.
Farmers who sign CWB pool contracts can deliver grain to any prairie elevator that has an agreement to handle CWB grain and oilseeds.
CWB also kicked off a series of farmer meetings last week that will continue this week.
For more information, visit www.cwb.ca/public/en/hot/events/fbrmeetings/.