Canada: CWB extends deadline for Harvest Pool

CWB has extended the deadline for farmers to sign up to the Harvest Pool from October, 31 to Friday, November 9.

"CWB recognizes that farmers need time to adjust to new options and procedures in the first year of the open market for Prairie grain," president and CEO Ian White said. "Many farmers have told us they want to participate in our pools, but requested more time to confirm grades, obtain additional information on grain company deductions and incentives and make their decisions."

White also noted there has been a large amount of contract sign-up in the last few days, but there is still room in the Harvest Pool for additional tonnes. "We can accommodate the requests for an extension of several days while still protecting returns for those who have already contracted," White said.

Pools benefit farmers by spreading price risk across a period of many months, ensuring producers are not captive to the price offered at the time they contract their grain. CWB pools manage both futures and basis price risk. Basis price risk is driven by factors such as buyers' short term needs, handling and transportation costs, and spreads for protein and other quality characteristics.

Under pooling, producers continue to benefit from sales prices achieved after they deliver their grain to the elevator. In addition, because CWB contracts can be delivered to any grain handling facility, farmers can negotiate the best deals possible on freight and handling charges. CWB Farm Business Representatives can help farmers with information on these costs and delivery opportunities.

"There are many excellent reasons that farmers continue to value a pooling option," White said. "In fact, our research suggests that 80 per cent of producers intend to use CWB pool programs."

02 November, 2012