Prairie wheat and barley growers can expect a harvest of adjustment payments in the next three weeks — and the Canadian Wheat Board is already pressing for more.
The federal government today announced it has approved increases to the Canadian Wheat Board’s 2007-08 initial payments — increases of around 20 per cent for wheat and barley and 30 per cent for durum.
Effective Thursday (Oct. 4), increases of $28.50 per tonne will be made to initial payments for wheat, $23.50 per tonne for Pool A feed barley, $29.50 to $36.50 for designated barley and $43.50 per tonne for milling durum.
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In apparent response to earlier criticism suggesting that Ottawa was dragging its feet on approving these increases, in light of dramatic market price hikes in recent months, federal Agriculture Minister Gerry Ritz said “CWB initial prices put taxpayer dollars on the line and it’s important to go through the due diligence process.”
That process, he said in a release, usually takes eight to 12 weeks and the government delivered it in “less than seven weeks” from when the CWB filed its request.
In a release today, the CWB said that it had already filed new recommendations for a further increase, given dramatic hikes in market prices since August 15, when the CWB made its earlier recommendation to Ottawa.
The CWB said the original 2007-08 initials for wheat and durum had been calculated as a percentage of the May pool return outlook (PRO) so it could meet Ottawa’s requirements for recommendations by mid-June. Ottawa set the barley initials without a CWB recommendation, the board noted in a release.
“Dramatic market price increases between May and August meant initial payments reflected a lower proportion of farmers’ expected final return.”
Farmers who delivered wheat, barley and durum to the CWB between Aug. 1 and Oct. 3 will get an adjustment payment by direct deposit on Oct. 16 or in the mail by Oct. 19. Farmers who want to defer payments have until Oct. 10 to make their request by phone at 1-800-275-4292.
The adjustments bring the total 2007-08 payment to date for No. 1 CWRS wheat (12.5), for example, from $147.50 to $176 per tonne. The most recent PRO for the same grade sits at $296.
For No. 1 CWAD durum (12.5), the adjustment brings the total payment to date from $144 to $187.50, well below the most recent PRO of $440 per tonne. Total payment to date for No. 1 CW barley (Pool A) rises to $130.50 per tonne, while its most recent PRO sits at $254. The initial and adjustment on Standard Select CW six-row designated barley total $173.50 per tonne, below the PRO of $261.
