Prairie farmers will have almost all year to sign up for Canadian Wheat Board producer payment option programs, beginning in 2010-11.
The board announced last week that the sign-up deadline for the fixed price contract (FPC) and basis price contract (BPC) has been extended to Jan. 31, 2011, from the previous Oct. 31 deadline.
With sign-up beginning Feb. 22, 2010, that means the sign-up period will last 11 months.
CWB president Ian White said farmers have been asking for increased flexibility in the PPOs.
“This enhancement means they will have more time to make informed choices for their businesses,” he said in a news release announcing the changes.
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PPOs were first offered in 2001 and have undergone numerous changes over the years in response to feedback from farmers and changes in market conditions.
Under the FPC, producers will be able to set a flat price that can be locked in any day during the sign-up period. The price is set daily based on the average price of western Canadian wheat already priced by the CWB and the current market value of wheat yet to be priced. FPC values will vary throughout the year, reflecting returns from actual CWB sales made.
The BPC allows farmers to lock in a total return for wheat by pricing basis and futures values separately. The futures component can be priced up to a year in advance of harvest. An adjustment factor applies at sign-up to reflect sales already priced by the board.
Other changes are also being introduced in 2010-11:
* Producers can apply previous deliveries to the pools to an FPC or BPC at sign-up.
- On a basis-first BPC, farmers can roll the basis between futures months as they become available.
Complete details on the changes and other PPO information can be obtained on the wheat board’s website at www.cwb.ca/ppo.
