WINNIPEG, MANITOBA, CANADA — The Canadian Wheat Board (CWB) announced on June 6 that 2011-12 initial payments for all grades and classes of wheat and durum will increase effective June 11. The increases will be C$28 per tonne for wheat and C$44 per tonne for durum.
The total initial payment to date is basis in-store Vancouver or St. Lawrence and must be adjusted for freight/elevation charges to arrive at farmgate prices. A complete listing of payments for all grades in dollars per tonne and dollars per bushel is posted on www.cwb.ca under "Farmers" and "Farmer Payments".
Farmers who delivered wheat or durum to CWB between Aug. 1, 2011 and June 10, 2012 will receive an adjustment payment. Producers will receive payment by direct deposit on June 26. Checks will be delivered for mailing to Canada Post by June 29, and farmers can expect to receive them by July 6. Farmers who wish to defer payments have until June 22 to notify the CWB by calling 1.800.275.4292.
Initial payments should not be confused with monthly Pool Return Outlooks, which are CWB estimates of farmers' total returns from each pool account. Rather, initial payments represent a portion of the returns farmers can expect from the sale of their grain over the entire year.
During the crop year, CWB regularly reviews the initial payments and recommends adjustment payments if market conditions and sales progress warrant. The government of Canada guarantees initial payments and therefore approves the level at which they are set. Upon delivery, farmers may alternatively choose the CWB's Early Payment Option (EPO) as a payment method.