A wheat contract that enables farmers to choose when to deliver is expected to be a big hit with producers this year.
Sign-up for GrainFlo, which is entering its second year, runs from Oct. 1 to Oct. 31, although Canadian Wheat Board officials say they don’t expect it will take long to sell out.
“We expect it to be extremely popular,” said CWB spokesperson Maureen Fitzhenry.
“There may be more demand than the program can actually take, so that everybody who wants to participate may not get in.”
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The board will accept up to 700,000 tonnes of Canada Western red spring and 200,000 tonnes of CW amber durum.
“I’m hearing this whole program could go in one day,” said Matt Kjarsgaard, the board’s manager for farmer registration and delivery programs. “There has been huge awareness and interest in this.”
The board has been urging producers to act early and talk to their grain companies in advance of sign-up to determine tonnage requests and alternative delivery periods if their first choice is not available.
There are four delivery periods under GrainFlo. Period one runs from Nov. 1 to Dec. 31, period two from Jan. 1 to Feb. 28, period three from March 1 to April 30 and period four from
May 1 to June 30.
Farmers who choose later periods will receive storage payments of $1 per tonne per month for period two, $2 for period three and $1 for period 4.
Kjarsgaard said the board decided to offer a higher storage payment for period three, which coincides with seeding.
“That’s the time of year when we’re really looking for deliveries, so we thought we’d throw in an additional dollar for storage,” he said.
Another change this year was removing July from period four. Kjarsgaard said that’s because there is no shortage of grain being delivered in that month, as producers face the end of the crop year.
GrainFlo was introduced last year in response to requests from farmers for more control over the timing of their deliveries. Farmers contracted about 600,000 tonnes of wheat and durum.
The board says the program delivers that flexibility while still ensuring that the CWB can call grain as needed to meet sales commitments.
Under the program, grain company representatives will call for contracted grain at the start of each delivery period.
In period one, acceptance will be at the same level as Series A contracts. Any uncalled grain will be rolled into a Series B contract. Between Nov. 1 and 18 period one contract holders can deliver up to 50 percent before acceptance is announced.
In periods two, three and four there will be guaranteed 100 percent acceptance
Complete details about GrainFlo can be found on the CWB’s website at www.cwb.ca. Search for “GrainFlo”.
