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Farmers

2011-12 Early Payment Options

Please ensure the tonnage you commit to this Producer Payment Option (PPO) program does not exceed your delivery contract tonnage. If you cannot deliver 100 per cent on this PPO contract, you will be subject to pricing damages.

User guide

What is it?

The Early Payment Option (EPO) provides cash flow shortly after delivery for wheat, durum and selected barley, and creates a guaranteed floor price for your grain. Feed grades cannot be delivered against milling wheat and durum or selected barley EPOs.

The EPO allows producers to lock in a percentage of the current reference grade Pool Return Outlook (PRO) value.

A different discount is charged for each EPV level.

When is it available?

The sign-up period for the 2011-12 crop year is August 2, 2011 to July 31, 2012.

You must sign an EPO contract before or on the day you settle your grain. Previous deliveries cannot be applied to an EPO contract.

Where do I find prices?

Prices are offered each business day from 3 p.m. to the expiry time posted on the daily pricing schedule, Prices offered are based on in store Vancouver or St. Lawrence values. You must deduct country handling and freight to determine your farmgate value.

Quoted prices are based on a reference grade.

Reference grades

Canada Western Red Spring No. 1 CWRS 13.5
Canada Western Hard White Spring No. 1 CWHWS 13.5
Canada Western Extra Strong No. 1 CWES
Canada Prairie Spring Red No. 1 CPSR
Canada Prairie Spring White No. 1 CPSW
Canada Western Red Winter No. 1 CWRW 11.0
Canada Western Soft White Spring No. 1 CWSWS
Feed wheat CW Feed
Durum No. 1 CWAD 13.0
Selected 2-Row Select CW Two-Row
Selected 6-Row Select CW Six-Row

2011-12 EPO pricing schedules

How do I get paid?

When you deliver your grain to the elevator you advise the agent to apply the tonnes to your EPO contract.

You will receive your payment in two parts:

  1. the initial price at elevator for grade delivered and
  2. an additional payment from the CWB within 10 business days of the delivery being applied to the cash ticket. The additional payment is always calculated using the reference grade initial price.

Additional payment calculation: EPV - discount – reference grade initial price

Note: If the pool return is greater than your EPV value, you are eligible for future payments from the CWB. If the final pool return is less that your EPV value, you are guaranteed the higher price.

When can I deliver against the contract?

You must sign a delivery contract with the CWB and you can then deliver as the grain is called.

What can I deliver?

Wheat – Nos. 1 and 2 CWRS/CWHWS, CPSR, CPSW, CWES, CWRW, CWSWS.

No. 3 CWRS/CWHWS – No. 3 CWRS or No. 3 CWHWS

Feed wheat -- CW Feed, No. 4 CWRS, No. 4 CWHWS, No 3. CWSWS, CW General Purpose.

Durum – Nos. 1 and 2 CWAD

No. 3 CWAD – No. 3 CWAD

No. 4 CWAD – No. 4 CWAD

No. 5 CWAD – No. 5 CWAD

Selected barley – all select grades, except sample grades

What are my risks?

Production risk: EPO contracts require 100-per-cent delivery. If you are short on your contract, you have the option of assigning the contract to another producer or buying out the contract.

To avoid price risk, you should coincide EPO contract sign-up with delivery. If there is an initial price increase before you deliver, there may be no value left in your EPO if you apply tonnes after the initial price increase.

How can I sign-up?

You can sign up online through e-Services, if you are a subscriber.

You can call 1-800-275-4292 between 3 and 5 p.m. CT (Winnipeg time). You must provide your CWB 10-digit producer ID number and four-digit PIN.

You can print off a form from our Web site and fax it to 1-204-983-8031.

Sign-up application

Who can help me if I need more information?

You can contact Program Service Representative:

Mavis Willson 204-250-4469

Or you can call 1-800-275-4292.

Historical price charts

There are charts on the Web site showing historical pricing information for EPO contracts.

Terms and conditions

Please ensure you understand how the contracts work before you commit tonnage to a pricing contract.

Is there more detailed information available?

A complete user guide is available.

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