Canada: CWB increases initial payments for designated barley

The CWB announced on March, 12 that 2009-10 initial payments for designated barley will increase by C$26.50 per tonne, effective March 18, 2010.

This payment value will apply to all grades and classes, the CWB said.

Thus, total payment to date for select 2-row designated barley will reach C$186.5/tonne, whereas total payment to date for select 6-row designated barley will increase to C$166.5/tonne.

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.

CWB’s February PROs for select 2-row designated barley and select 6-row designated barley are C$211 and C$193 per tonne respectively.

During the crop year, the 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.

Controlled by western Canadian farmers, the CWB is the largest wheat and barley marketer in the world. One of Canada's biggest exporters, the Winnipeg-based organization sells grain to over 70 countries and returns all sales revenue, less marketing costs, to farmers.

17 March, 2010