A Canadian Wheat Board program that enables farmers to price their grain based on average U.S. elevator spot prices sold out in 90 minutes last week.
The sign-up period for the daily price contract (DPC) began at 9 a.m. June 18.
By 10:30, all 650,000 tonnes available under the program had been snapped up by 1,220 producers taking out 1,264 contracts who managed to get through to the board by phone or fax.
The contracts were limited to 5,000 tonnes in order to allow as many producers as possible to participate.
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Contracts were available on seven classes of wheat and must be priced by July 31.
This is the second full year of the daily price contract program; last year the volume was capped at 500,000 tonnes.
Board spokesperson Maureen Fitzhenry said high U.S. elevator prices in recent weeks prompted more farmers to take a look at the DPC as a way to boost cash flow.
Also, she said, farmers are increasingly confident and comfortable with the CWB’s various pricing options, including the DPC, the fixed price contract and the basis payment option.
The board knew there would be strong demand, she added, and 39 staff members were on duty to answer calls and process applications.
Conservative MP David Anderson criticized the board for limiting the program to 650,000 tonnes and called on the agency to expand the program to include all farmers who want to participate.
“This is one more example that illustrates how the CWB has limited farmers’ ability to maximize their returns on wheat for the entire crop year,” he said.
Fitzhenry rejected Anderson’s criticisms, saying it’s not feasible to price the entire Canadian wheat crop against a market that represents only 10 percent of the board’s total sales program.
“I think this program has been a great success and the fact farmers signed up in great numbers shows they’re happy to have the opportunity to price this way,” she said.
“To turn that positive into a negative, as Mr. Anderson is doing, is really very disappointing.”
