SASKATOON – Wheat growers will probably be paid for each half-a-percent of protein they produce next crop year.
But whether those protein payments will extend to No. 3 Canadian Western Red Spring wheat hadn’t been decided as of last week.
For months, the Canadian Wheat Board and grain handling companies have been trying to figure out how to tie payments more closely to the protein content of farmers’ wheat.
“It will in all likelihood be a one-half percent increment for No. 1 and 2 on hard red spring (wheat) and possibly one break point in No. 3,” said John Benci, the CWB official in charge of the project. “It’s the possibility on No. 3 that we’re unsure of yet, whether we can make it work.”
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While talks have dragged on longer than expected, board officials last week told grain companies that if a new system is to be put in place by Aug. 1, a decision is needed quickly.
The board, supported by some farm groups, initially proposed separate payments for every one-tenth of a percent change in protein levels in 1 and 2 CWRS, that means paying farmers more for 13.3 percent protein than 13.2 percent.
But that won’t happen in 1995-96.
Limiting protein payments to the top two grades allows grain handling companies to install protein testers in areas most likely to produce high grade, high protein wheat and durum. Include 3 CW, they say, and it’s a whole new ball game.
“No. 3 is grown all over the country,” said Ed Guest of the Western Grain Elevators Association. Even if the companies could afford it, he said, there aren’t enough of the $40,000 protein testing machines in Canada to put one in every prairie elevator.
And the more protein categories there are, he said, the greater the potential for operational problems at country elevators: “There are lots of complexities involved, and they’re costly complexities.”
No hardships wanted
While the board wants protein breaks on No. 3 CW, Benci said it doesn’t want to create hardships for farmers or grain handlers.
“We think it would be a good thing, but if it can’t work and it’s hard to manage in the country, that’s something we’ll have to look at,” he said.
And while different payments for every one-tenth of percent change in protein won’t be introduced for 1995-96, Benci said that is the goal for 1996-97.
Protein premiums are now paid on 1 CWRS 13, 13.5, 14 and 14.5 percent; 2 CWRS 13.5 percent; 1 and 2 CWAD 13 percent; 1 and 2 CWES 13 percent, on winter wheat at 11.5 percent and on soft white spring below 11.5 percent.
There’s also a question of who should pay for testing equipment. Farmers are currently contributing through a controversial 50-cent-a- tonne checkoff on 1 CW wheat and durum unloaded at export position. Guest said those who want the service should pay for it.
