Initial payments for the CWB’s new 2012-13 pool programs will reflect a higher percentage of the expected final payment.
For spring and winter wheat, CWB intends to boost the initial payments to about 75 percent of expected final pool returns, the CWB said in a news release.
Previously, guarantees for initial payments were strictly the responsibility of the federal government and were set at about 65 percent of projected final returns.
To provide higher guarantees in this first year of operating without a monopoly, the CWB will combine ongoing government guarantees with its own risk-management strategies.
Also, CWB will offer a Pool Cashout Option that will enable farmers to access a fixed and final payment on delivered grain.
In the news release CWB president and chief executive Ian White said this addresses farmers’ desire to get more of their pooled returns up front.
“We understand the importance of cash flow in grain farming. At the same time, we are keenly aware that risk management is crucial for farmers. Our new pool programs successfully combine these key requirements.”
Adjustment payments will be paid to farmers as sales progress and final returns can be projected with more certainty.
For farmers interested in faster cash flow, the Pool Cashout Option will provide full payment on delivered grain at values determined daily, based on market conditions. Values will be available on the CWB web site, starting Aug. 1.
CWB provides highlights of relevant current market conditions and new-crop price considerations through a New-Crop Market Monitor, now posted under the “Farmers” tab at www.cwb.ca.
