The Canadian Wheat Board (CWB) will offer farmers a full portfolio of grain-marketing programs in the 2012-13 crop year, including pooling options, futures-based contracts and cash prices.
"The grain-marketing landscape is changing, but farmers' business needs are the same," said CWB president and CEO Ian White. "Farmers want good returns for their grain, solid risk management and timely cash flow. We're ready to deliver competitive alternatives that farmers can use with confidence as they build individual marketing strategies."
White said the CWB's new package of grain-marketing solutions, to be launched this year, is based on 75 years of experience against the toughest competition in the world.
"Our global reputation and customer network are unsurpassed," he said. "Our professional marketers and risk managers are the best in the business. Grain marketing is the CWB's entire focus. It's what we do. We've got the expertise and the experience to serve farmers really well in the new environment."
White noted that CWB finances continue to be backed by the full guarantee of the Government of Canada, which will provide security for farmers in the new open-market environment that begins August 1, 2012.
The CWB's decades-long connection with Prairie farmers gives it a unique farmer focus and reputation for fairness, White added.
"Our experts will assist farmers in building a solid marketing portfolio that will keep them ahead of the game, with whatever combination of programs makes the most sense for their own farm business plans."
Detailed program information will be announced throughout 2012. The attached summary provides a high-level description of CWB programs that farmers can expect.
A look ahead at CWB programs for farmers:
Price pooling: Pooling grain offers farmers the benefits of a cost-effective risk management strategy to stabilize price volatility and generate returns across markets, throughout the pool period. The CWB will offer short- and longer-term pool periods that enable farmers to choose the best match for their own price-risk tolerance and cash-flow needs. Payments will take the form of initial payments, followed by adjustment and final payments. Early Payment Options will be available. The shorter-term pool will create early delivery opportunities for farmers, while the longer-term pool will call deliveries throughout the pooling period.
Futures-based contracts: Farmers can take advantage of the CWB's extensive experience hedging wheat on the Minneapolis, Kansas City and Chicago grain exchanges. Under these contracts, farmers can protect an attractive price based on futures markets, as a highly effective way to manage risk. They will be able to lock in a price that takes care of futures values, foreign exchange and delivery with one decision. They will also have the flexibility to choose a base grade of wheat.
Cash contracts: Farmers can use CWB cash contracts to increase profitability and cash flow through upfront price certainty. Farmers choose when they price and sell, and receive full payment soon after delivery, with delivery opportunities offered in accordance with contract terms. The CWB's superior global reputation and customer network will give farmers access to the world's most quality-conscious markets. Customers continue to rely on the CWB as their preferred supplier, trusting in its long history of customer service and dependability.
Support for a marketing strategy: CWB experts will be available to assist farmers in building a solid marketing portfolio that serves their business needs. Frontline CWB staff can explain how CWB programs, used individually or in combination, will help them implement a grain-marketing plan that makes the most sense for their own farms, backed by experience, expertise, farmer connection and financial security.
Connected to farmers: Farmers can indicate their interest now by contacting their local CWB Farm Business Representative, calling the Farm Business Team at 1-800-275-4292 or e-mailing farmerservice@cwb.can. Farmers can also be directly alerted to new program announcements and updates by registering at cwb.ca/email.
