SASKATOON – Only a handful of farmers will be able to take advantage of the higher initial prices for high-protein wheat and durum, says a Canadian Wheat Board information officer.
Less than 20 percent of the crop graded No. 1 and No. 2. Normally 75 percent of Canada’s crop makes the grade, said Brian Stacey.
Federal agriculture minister Ralph Goodale made the announcement last week guaranteeing the new minimum return. The increase in the initial payments is effective Jan. 10, 1994. Producers who delivered high-protein wheat and amber durum wheat between Aug. 1, 1993 and Jan. 9, 1994 will receive adjustment payments in the mail after Jan. 26.
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“This is not going to affect a lot of farmers,” said Mike Ebelher, Alberta Wheat Pool grain manager at Dunmore, east of Medicine Hat.
Generally the area produces about 80 percent No. 1, he said. This year only about half of the crop is No. 1 and No. 2.
Low protein in southern Prairies
Even the traditional high-protein areas of the southern Prairies did not produce protein quality because of wet, cool weather during the growing season.
Farther west, near Brooks, only five percent of the crop graded No. 1, said Doug Lee, station manager. Last year 95 percent was No. 2 and 3, which is the reverse pattern of the past few years.
“I don’t think it’s going to help a lot of farmers,” said Lee.
Kent McLeod, Saskatchewan Wheat Pool manager in Estevan, said he doubts whether the higher initial payments will bring any more high-quality grain to the elevator.
“What it will do is keep the farmers busy trying to convince everyone that they have it,” McLeod said.
Only the “odd load” of grain will make the grade, said Warren Seminuk, assistant elevator manager of Pioneer Grain in Carnduff, near the Manitoba border.
“The weather last year was pretty disgusting. … You can’t get blood out of a stone,” Seminuk said.
“This is not part of a plot to try and drive out stocks that aren’t there,” said the wheat board’s Stacey.
“This is trying to reflect the market value for wheat of that quality.”
The initial price increase is a reflection of low world stocks of high-protein wheat and durum, he said.
