SASKATOON – Prairie wheat farmers are getting another instalment on their 1994-95 crop
year returns.
The federal government announced last week that initial payments for all wheat and durum have been increased by $12 a tonne, effective May 10. Cheques covering deliveries up to that date will be mailed May 31.
The new initial payment for 1 CW red spring wheat is $167 a tonne, basis in-store at Thunder Bay or Vancouver. (Prices at local elevators reflect transportation and handling charges, which average about $26 a tonne.)
The payment for 14.5 percent protein wheat is now $207 a tonne, while 3 CWRS will fetch $149. Other payments are: prairie spring wheat $149 a tonne, extra strong $167, red winter $156 and soft white spring $149.
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federal government proposed several months ago to increase the compensation rate from 80 to 90 per cent and double the maximum payment from $3 million to $6 million
Payments close to final return
The latest increase boosts the payments close to the expected final return for the 1994-95 marketing year. Initial payments for wheat now represent anywhere from 85 to 90 percent of the Canadian Wheat Board’s latest pool return outlook.
For durum, the new payments are somewhat lower relative to the outlook, with the initial of $187 for 1 CWAD representing about 80 percent of the projected final return of $232 a tonne.
In announcing the increase, agriculture minister Ralph Goodale said the crop year is far enough advanced, and enough of the crop has been sold and priced by the wheat board, that an increase was in order.
He added the increase is particularly good news because it comes when farmers need additional cash to pay their seeding bills.
