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Farmers
Farmer contracts
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New for 2010-11 The CWB is introducing improvements to the following delivery programs for the new crop year. |
Delivery contract programs
A delivery contract is an offer from you that becomes a binding contract when accepted by the CWB. It specifies the type, grade and quantity of grain you will deliver. You must have a delivery contract signed up before receiving a cash ticket for grain delivered to an elevator.
- Series contracts (A, B, C): Series contracts are the most common method of contracting grain for delivery. This option allows you to choose the type, grade and quantity of grain for delivery. Storage payments will be paid for CWRS, Canada Western Red Winter wheat and Canada Prairie Spring Red wheat Series A, B and C and CWAD wheat Series A and B delivery contracts.
- Guaranteed Delivery Contract: Enables you to contract grain for a defined delivery period to meet specific sales requirements.
- GrainFlo: GrainFlo is a delivery contract for wheat and durum that enables you to choose from two delivery periods and receive storage payments.
- Wheat Storage Program: This delivery option pays you a contract premium and storage payment to store your high-quality, high-protein, No. 1 CWRS wheat on farm.
- Identity Preserved Contract Program: Offers you added-value incentives to produce new or special wheat, durum or barley varieties.
- Cash Buy: The Cash Buy program provides farmers an upfront, market-based cash price for grain delivered for domestic human consumption.
- Churchill Storage Program:Enables producers within the Churchill catchment area to receive a premium and storage payment for grain stored on farm until called for delivery to the Port of Churchill.
- Selected Barley Storage and Delivery Contract: Available for malting, pearl and pot barley on a Selected Barley Storage and Delivery Contract. You will receive a storage payment until you deliver.
- Canada Western Red Winter (CWRW) program : Applies a freight adjustment factor for red winter wheat growers to more accurately reflect rail freight costs.
The CWB has many types of delivery contracts available for sign-up. View the 2010-11 contract programs.
New for 2010-11
Wheat and durum delivery contract changes
The CWB is introducing improvements to its delivery programs for the new crop year.
The updates include an overhaul of the GrainFlo delivery program, a move to paying farmers’ storage on Series contracts and managing specialty wheat classes primarily through Guaranteed Delivery Contracts (GDCs).
The program changes are intended to provide more flexibility and increased access for all farmers. These changes will also create system efficiencies to help save you money.
The delivery policy changes are based on direct farmer feedback.
Program highlights
GrainFlo tonnage volumes will increase significantly to maximize farmer participation in this program. GrainFlo is delivery contract for wheat and durum which allows farmers the ability to deliver into two delivery periods and also receive a storage payment. The new tonnage cap for Canada Western Red Spring wheat (CWRS) is three million tonnes – much expanded from the previous limit of 700 000 tonnes. For Canada Western Amber Durum (CWAD), the cap has been increased to 600 000 tonnes from 200 000 tonnes.
In place of four GrainFlo delivery periods, there will now be two periods. Period 1 is from December 15, 2010 to March 15, 2011 and Period 2 is from March 16 to June 30, 2011. This is intended to continue providing you with some choice over when you deliver your grain and, at the same time, ensure that the CWB can call grain when needed to execute grain sales.
- Another change will see storage payments for Series A delivery contracts for CWRS and CWAD. This enables farmers outside the GrainFlo program to also earn storage payments and helps compensate farmers for delivering throughout the crop year.
The CWB will increase use of Guaranteed Delivery Contracts (GDCs) for smaller-volume, specialty wheat classes. This is an an efficient way to take advantage of marketing opportunities throughout the year.
GDCs will replace Series contracts for Canada Prairie Spring White wheat (CPSW) and Canada Western Extra Strong wheat (CWES). For Canada Western Red Winter wheat (CWRW), Canada Western Soft White Spring wheat (CWSWS) and Canada Prairie Spring Red wheat (CPSR), Series A contracts will be available at the start of the crop year with storage payments being paid to contract holders. If more grain is required after the Series A contract period has expired, GDCs will be used to source the additional grain.
- Farmers who participate in the Churchill or Wheat Storage programs will receive a portion of their storage payment with the premium payment after contract sign-up deadline. This allows for a larger on-time payment for farmers and less administration costs.
Major CWB delivery policy changes beginning in for 2010-11:
GrainFlo
Enables more farmers to access to GrainFlo contracts.
- Increased tonnage from 700 000 tonnes to three million tonnes for CWRS and from 200 000 tonnes to 600 000 tonnes for CWAD.
- Two delivery periods rather than four - (Period 1 – Dec. 15 to Mar. 15, Period 2 – Mar. 16 to Jun. 30).
- CWB calls your grain within the period. You have 30 days to deliver when called.
Storage payments
Compensates farmers for storing grain.
- Storage payments for CWRS wheat Series A, B and C and CWAD wheat Series A and B delivery contracts.
Use of Guaranteed Delivery Contracts (GDCs) for specialty wheat classes:
More system efficiency, with cost-savings passed on to farmers.
- GDCs only for CPSW and CWES. Series A, B and C discontinued for these classes.
- CWRW, CWSWS and CPSR offered under Series A. If more grain is needed, these classes will be called in with GDCs.
Churchill and Wheat Storage programs
Provides farmers with a higher payment at contract sign-up.
- A portion of storage and premium will be paid after the sign-up deadline of October 31, 2010.
Liquidated damages
- A formula based liquidated damages calculation replacing the former $6 to $25 per tonne range.
For more CWB information, please call 1-800-275-4292 (Monday to Friday, 8 a.m. to 6 p.m. CT, Winnipeg time) call your local farm business representative or e-mail farmers@cwb.ca .
