SASKATOON – It will be at least another month before wheat growers know how they’ll be paid for protein in the next crop year.
The Canadian Wheat Board and prairie grain handling companies met in Winnipeg Feb. 6 to continue thrashing out the logistical and administrative issues involved in linking payments more closely to protein content.
Serious discussions began last fall and some in the industry had hoped to have a decision before February.
“I guess maybe it’s taking a little longer that we anticipated, but I’m expecting, hopefully, some direction by the end of the month,” said John Benci, the wheat board official heading up the discussions.
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“I really can’t say too much other than we’re looking at the logistical implementation of it and trying to keep it as simple as we can.”
The board has said it wants to tie wheat payments more closely to protein content. It has proposed a scale of one-tenth of one percent. That means, for example, farmers would be paid a different price for a protein content of 13.1 percent than for 13.2 percent.
Currently, there are protein premiums for hard red spring wheat at 13, 13.5, 14 and 14.5 percent, durum wheat at 13 percent, winter wheat at 11.5 percent and soft white spring below 11.5 percent.
The board says farmers should be paid for what they’ve grown. Such a change would also give the board an additional marketing tool, since many customers buy on the basis of protein content.
The grain companies say they support the principle, but worry that the logistics and paperwork involved could add significant costs. Some argue it’s impossible to go to a one-tenth of a percent system, and have suggested three-tenths instead.
“We need something that’s practical, that’s user-friendly and where the costs exceed the benefits,” said Maurice Demmans of Saskatch-ewan Wheat Pool.
