Just like tens of thousands of cash-strapped farmers across the Prairies, the Canadian Wheat Board is anxiously waiting for the federal government to approve an increase in the initial payment.
But it’s beginning to look like those increases won’t arrive much before Christmas.
On Nov. 3, the board recommended to the government that payments be increased substantially.
CWB spokesperson Maureen Fitzhenry said it usually takes six to 10 weeks for the government to respond to a request for an increase in the initials.
“We hope to see the adjustment in the payment before the Christmas break,” she said.
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The initial payments for 2006-07 went into effect as usual on Aug. 1. On Aug. 31, the CWB recommended an increase, reflecting stronger world markets. The government responded more than two months later, raising the payments on Nov. 2. The next day the board sent off its recommendation for another increase.
The board has asked the government to find ways to speed up the approval process, but that hasn’t happened.
“If anything, the process has gotten longer and more complicated, not speedier and more efficient,” said Fitz-henry.
Federal officials failed to return a phone call asking when farmers can expect to receive an increase in the initials.
While the board won’t reveal specific numbers, sources say the increases would likely be in the range of $20 to $25 a tonne for red spring wheat, around $15 a tonne for durum, $20 to $25 for feed barley and more than $20 a tonne for two-row malting barley.
That would boost the initial payments to 80 to 85 percent of the pool return outlook for wheat, 75 to 80 percent for durum, 65 percent for feed barley and around 85 percent for malting barley.
Currently, the initial payments as a percentage of the PRO work out to 71 percent for wheat, 69 percent for durum, 50 percent for feed barley and 74 percent for malting barley.
Fitzhenry described the current initials as “abysmally low” adding the board generally likes to see them at least 75 percent of the expected final price as reflected in the PRO.
While it’s still relatively early in the crop year, she said the board has a good take on the quantity and quality of crop and has much of its sales program for the year in place, giving it the confidence to call on Ottawa for another increase.
