A four-year-old program designed to put more money into wheat farmers’ pockets more quickly is still struggling to find acceptance.
The Canadian Wheat Board’s pre-delivery top-up is available to farmers who take out a cash advance from the federal government.
The $30 a tonne payment is available on all classes of wheat and, for the first time in 2006-07, durum.
The program was introduced in 2003-04 as a pilot project covering minor classes of wheat and attracted just seven participants.
The next year all wheat became eligible and 79 farmers signed up. In 2005-06, that number rose to 324, representing about 200,000 tonnes of grain.
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It’s too early to say how many farmers will make use of the program this year, but the board is hopeful the addition of durum, favourable word-of-mouth reviews and more advertising will produce more interest.
So why are hard-pressed farmers ignoring a program that provides them with an additional $30 a tonne, less interest, before delivery?
CWB officials acknowledge it’s a bit of a puzzle, but suggest a couple of reasons, including inadequate promotion and advertising and a general wariness among farmers about jumping into new programs.
“I think it just takes time for farmers to become aware of new programs and to feel comfortable using them,” said Ed Thomas, who oversees the cash advance and top-up programs for the wheat board.
One farmer who uses the pre-delivery top-up has his own theory as to why the program isn’t used more by farmers.
Murray Downing, who farms at Reston, Man., said grain companies aren’t doing anything to promote the program to farmers who go to the elevator to apply for a cash advance.
That’s because the program takes some of the pressure off farmers to deliver grain, which runs counter to the financial interests of grain handlers, who depend on throughput.
Grain companies deny that they don’t tell farmers about the top-up, saying it’s in their interest to provide the best service possible to their customers.
Thomas said the board has asked grain companies to put up posters about the program in elevators and has no reason to believe that grain handlers aren’t informing farmers about the top-up.
While the pre-delivery top-up is linked to the federal government’s cash advance, it is technically a CWB contracting program. Repayment is made through deductions from payments for CWB deliveries as the crop year progresses.
All classes of wheat and durum are eligible, including identity preserved contract program wheat. However, No. 4 Canada Western red spring, No. 3 CW soft white spring, CW feed, sample grades and mixed grain are not eligible.
