The Canadian Wheat Board’s recent problems procuring No. 1 CWAD (Canadian Western Amber Durum) show the faults in the current pricing system and the lack of CWB flexibility. … I feel the board should offer the choice of a free 100 percent Early Payment Option (EPO) on either the 2010-11 or 2011-12 Pool Return Outlook (PRO).
As long as the sale of durum that the board needs is being bought for more then the EPO, there is no risk to the pools. The faster purchase of durum reduces the demurrage and so protects the value of the 2010-11 pool account.
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The portion of money paid to producers for the 2011-12 EPO would isolate the risk to the producers in that year. The balance would enhance the 2010-11 pool.
To entice producers into the initial 2011-12 PRO with free rollover places too much risk on the individual producer. The board has perfect knowledge of the price of durum being sought. It should use that knowledge to be fair to producers involved.
The risk of price change is more than proven from the past errors of early PROs. Please contact your director and ask for fair and transparent pricing options.
I hope for everyone’s sake that the current offer, if not modified, turns out beneficial to all parties involved.
Alex Russell,Lethbridge Alta.
