An estimated 4,500 farmers are expected to take advantage of the Canadian Wheat Board’s identity preserved contract programs for 2006-07.
The board is offering six IP contracts, one involving hard white spring, one each for three varieties of durum, one for Canada prairie spring red and one covering eight varieties of red winter.
The contracts enable the board to test-market new varieties with potential domestic and foreign customers and to supply buyers with varieties that meet specific milling and malting needs.
“The IP contracting program allows buyers to test a variety’s milling and end-use qualities, which increases the potential market for the high quality grains grown by western Canadian farmers,” said Earl Geddes, in charge of product development and market support for the CWB.
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Farmers benefit through a variety of incentives attached to the contracts.
That can include price premiums as high as $10 a tonne, guaranteed acceptance of all contracted production by the end of the crop year, on-farm storage payments, protein premiums and incentives offered by grain handlers such as trucking premiums.
The varieties selected for IP contracts fall into one of three categories: it has been developed to meet a specific market need; it has unique quality characteristics within its class; or it fits a narrow niche market that commands a market premium.
Here are the IP contracting programs for 2006-07:
- Hard white spring varieties Snowbird and Kanata – The contract carries a premium of $2.50 a tonne. The board will likely accept delivery of all milling grades, with limited acceptance of other quality for market development work. Application forms are available from Paterson Grain and Cargill.
- AC Navigator durum – The variety, which is valued for its colour, carries a premium of $2.50 a tonne. The board expects to market about 200,000 tonnes next year. Acreage is unlimited. Navigator is owned by Saskatchewan Wheat Pool.
- Strongfield durum – This new high protein, high yielding, low cadmium variety carries guaranteed acceptance of one tonne per contracted acre, with financial incentives available from the nine authorized handling companies. The board will accept 385,000 tonnes.
Storage payments are three cents per tonne per day for the first 120 days and five cents thereafter.
- Commander extra strong durum -The board is looking to contract about 30,000 acres of this extra strong variety. The contract carries guaranteed acceptance for eligible grades and storage payments the same as Strongfield. It is available from Sask Pool.
- Canada Prairie Spring Red 5701PR – About 70,000 acres will be contracted to this new higher protein variety destined for market testing. Guaranteed acceptance for No. 1 and 2 with protein at least 11.5 percent and a minimum falling number of 275. The contract carries a price premium of $5 a tonne, with storage payments the same as Strongfield. Applications available from Agricore United.
- Red winter select – A contract premium of $10 a tonne and guaranteed acceptance for product grading 1 and 2, with minimum protein of 11.5 percent.
Storage payments the same as Strongfield. Applies to the varieties AC Bellatrix, AC Readymade, AC Tempest, CDC Buteo, CDC Osprey, McClintock, Norstar and Radiant.
