The Canadian Wheat Board plans to introduce in January a barley pricing system, designed to offer farmers the best of both marketing worlds.
The board hopes to offer farmers the choice between a cash-price contract for their malting barley, or continuing to take a pooled price.
The cash-pricing program, to be called CashPlus, is designed to provide more flexibility and market-driven price signals.
CWB chief operating officer Ward Weisensel said the board believes the plan should satisfy demand from growers who want marketing choice.
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“We feel it provides what an open market provides, which is the opportunity to take a cash price that is guaranteed,” he said.
The CashPlus program will involve three transactions:
- The CWB negotiates sales directly with buyers.
- The board sets a cash price based on market conditions.
- Maltsters and farmers negotiate contracts among themselves.
Farmer will indicate on their malting barley contract whether they will participate in the CashPlus program or the pool. If market conditions result in a surplus in the program at the end of the marketing year, those funds will be distributed among contract holders.