SASKATOON – Initial wheat payments have been increased for the second time this crop year.
But there still appears to be plenty of room in the pool accounts for further increases or a sizable final payment.
Federal agriculture minister Ralph Goodale announced last week that initial payments will go up by $20 a tonne for most classes and grades of wheat, effective Feb. 22.
The increase will be $15 a tonne for lower grades of winter and soft white spring wheat, along with feed, sample quality and 5 CW amber durum.
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federal government proposed several months ago to increase the compensation rate from 80 to 90 per cent and double the maximum payment from $3 million to $6 million
The new initial payments represent about 85 percent of the projected total return in the 1994-95 pool accounts.
For example, the new initial for 1 CWRS is $155 a tonne, while in its latest pool return outlook the Canadian Wheat Board projects the total payment will be in the range of $179 to $189 a tonne.
The prices quoted by the board reflect payments at export position. The price at local elevators reflects deductions for freight and handling, which average around $26 a tonne for wheat and durum.
Initial payments for wheat and durum were increased by $25 in October. The payment for 1 CWRS has gone from $110 a tonne on Aug. 1 to $135 in October to its current level of $155.
Adjustment payments to reflect the Feb. 22 increase will be mailed to farmers the week of March 13.
