The CWB – formerly the Canadian Wheat Board – says its new pool contracts offer producers risk management and stability
Winnipeg – The CWB, formerly known as the Canadian Wheat Board, has officially launched a new crop of programs for what it’s calling a new grain-marketing era.
The CWB says it has been consulting with farmers for the last few months, including a series of 21 meetings in communities across Western Canada, which wrapped up in late March.
The CWB’s programs include two pools, three cash-contract programs and malting barley production contracts.
Farmers can sign up directly with the CWB for some contracts and choose their delivery point later or contract through a preferred CWB grain-handling partner, which now includes Cargill elevators across Western Canada and South West Terminal near Gull Lake, Sask.
CWB adds that handling agreements are expected to be reached shortly with all Prairie grain companies, giving farmers a wider range of delivery choices than any other contract available.
Pricing pools could prove to be popular
The CWB says the farmer pricing pools are expected to be a popular marketing approach for many producers.
“Our pool contracts provide simple, effective risk management and marketing that ensure farmers will never be forced to settle for the bottom of the market or chase an elusive market high,” says Ian White, CWB president and CEO.
“With one CWB contract, farmers are covered in terms of sales planning, execution, foreign exchange and risk management, including the risk from grade spreads, which can be a significant issue for spring wheat in particular.”
Through pooling, farmers can keep the profits derived from the sale of their grain – right from the farm gate to the end user. If market rallies occur after contracts are signed, only pooling ensures that farmers continue to share in the additional revenue.
The CWB adds that farmers will have their grain sold into the best markets around the world due to the long-standing relationships the CWB has built over the last 75 years.