The Canadian Wheat Board has created a new pricing option for feed wheat.
"Wet weather throughout the growing season means more feed wheat in the bins than there has been in at least six years," says Ian White, CWB president and CEO. "This has created a difficult situation for many farmers (and) as much as a quarter of all wheat harvested this year could grade as feed."
The new pricing program was launched earlier this week. It gives farmers the choice of immediately locking in prices for Canada Western feed wheat. In a news release, the CWB says the new pricing program uses the CWB's early payment option in a new way, as a means of striving for the highest returns for feed wheat from the current market environment.
"Farmers tell us they'd like to lock in a feed wheat price this year, so we've adapted an existing program to enable them to do that," White says. "Farmers can now choose the feed-wheat price that suits them best, taking into account their market view and cash flow needs."
In an average year, over 70 per cent of Prairie spring wheat is in the top two grades. This year, only 38 per cent is expected to grade Nos. 1 or 2, leaving about 35 per cent as No. 3 and 25 per cent as feed. The CWB states that not since the cold summer and wet harvest of 2004 has it expected such a high volume of feed wheat.
Details of the program are available at www.cwb.ca/epo.