Some cash should be finding its way into farmers’ pockets in the next few weeks.
The Canadian Wheat Board is preparing to send out interim and final payments on wheat and barley it sold on farmers’ behalf during the 2000-01 crop year.
Based on the board’s latest price projections, those two payments together could be in the neighbourhood of $13 a tonne for wheat, $44 a tonne for durum, $12 a tonne for feed barley and $9 to $19 a tonne for designated barley.
“The money’s there and we want to get it into farmers’ hands as soon as possible,” said CWB director John Clair, a member of the board’s finance and audit committee.
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Board officials say the interim payment could be sent out in early November while the final payment could be in the mail by the first week of December.
The payments will provide some relief for cash-strapped farmers feeling the effects of the drought that slashed yields across much of the Prairies this year.
“I farm, and I’m sure waiting for it this year,” said Clair.
As of Oct. 26, the board was waiting for the federal government to approve its recommendation for an interim payment for all classes and grades of CWB grains.
Board spokesperson Rheal Cenerini said the interim payment, if approved, will be “fairly substantial,” leaving only a small amount for the final payment.
“With the interim payment we’re going to be trying to get very, very close to what the Pool Return Outlook indicates,” he said.
The board issued the last PRO for 2000-01 on Sept. 27.
It projected a final price of $204 a tonne (in store at export position) for No. 1 Canada Western red spring 13.5 percent protein wheat. So far, farmers have received payments totalling $191.30.
For No. 1 CW amber durum 13 percent protein, the PRO is $261 a tonne, while farmers have received $217.25 to date.
For No. 1 CW feed barley, the PRO is $143 a tonne while payments to date total $131.
For designated barley, the PROs are $202 a tonne for special select CW two-row and $177 for six-row. Growers have so far been paid $193 and $158 respectively.
Clair said the board of directors hopes to sign off on the final payment at its meeting in late November and send the money to farmers the first week of December.
Recent changes to the Canadian Wheat Board Act allow final payments to be made before Jan. 1. Farmers will still be able to defer the payment into 2002 for tax purposes if they wish.
“But if they want the cash, it should be in their hands before year-end,” said Clair.
Distributing final payments earlier has been a goal of the board for some time, he said, and would represent “a major accomplishment” for the restructured board.
New accounting procedures and an earlier closing of most of the pool accounts has made an early-December payment possible.
