Rising wheat prices and new marketing options caused farmers to take more interest in Canadian Wheat Board producer payment options this year.
More than 20,000 prairie farmers took advantage of the programs, locking in prices based on futures markets or U.S. elevator prices for 3.5 million tonnes of grain, the CWB said in a News release
news.
That represents a six-fold increase over 2005-06, with a 500 percent increase in grain tonnage committed for the CWB fixed price contract, basis payment contract and daily price contract programs. The sign-up period for the fixed price contract and basis payment contract ended Oct. 31.
Read Also
VIDEO: Catch up with the Western Producer Markets Desk
The Western Producer Markets Desk provides daily updates on agricultural markets, with recent video commentary including looks into canola, wheat, cattle and feed grains.
Almost 20,200 producers committed 3.54 million tonnes of grain to the three programs this crop year, compared to 3,181 farmers who signed up 710,590 tonnes last year. In 2004-05, 6,782 producers committed 1.2 million tonnes.
The fixed price contract was the most popular option, with more than 15,000 farmers participating. The basis payment contract, which provides an ability to lock in a basis level or futures value at different times, attracted more than 2,000 farmers and a 57 percent increase in grain committed. The daily price contract, using values based on U.S. elevator prices, had reached its maximum program sign-up of 500,000 tonnes by July 31. To date, more than half of that grain has been committed and paid out.
