E-Malt.com News article: 1264

The Canadian Wheat Board (CWB) has introduced an early payment option (EPO) for malting barley. Like the early payment options for wheat and feed barley, the malting barley program will allow farmers to lock in 90 % of the Pool Return Outlook for their crop, less certain discounts, the Western Producer reported in a statement. "The EPO also provides farmers with an effective floor price," said CWB chair Ken Ritter, in a news release. "They can get more for their grain, but they won't get less." Farmers can sign up for the EPO between Aug. 1 and Nov. 28. Under the program, farmers get the initial payment upon delivery. Within 10 days, they receive the difference between the initial payment and 90 % of the PRO, less a discount for risk, time value of money and administration costs.

Farmers in the program remain within the board's malting barley pool account, and are eligible for adjustment, interim or final payments that exceed 90 percent of the PRO. Those whose selected barley contracts are not accepted for malt can either buy out their EPO contracts or transfer all or a portion to an EPO for feed barley. Farmers who take advantage of the EPO can commit all or a portion of their tonnes committed to a selected barley delivery contract, with a 20-tonne minimum.


02 July, 2003