Canadian Wheat Board introduces new feed-wheat pricing program
Canadian farmers struggle with large supplies of lower-quality grain this year. In an effort to help the farmers the Canadian Wheat Board, or CWB, has introduced new pricing options 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. This has created a difficult situation for many farmers," CWB President and Chief Executive Ian White said in a press release. He said that "as much as a quarter of all wheat harvested this year could grade as feed."
The new pricing program gives farmers the choice of immediately locking in prices for Canada Western feed wheat, said the release.
"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 said.
"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, more than 70% of western Canadian spring wheat is in the top two grades.
This year, only 38% is expected to grade No. 1 or 2, leaving about 35% as No. 3 and 25% as feed.
Not since the cold summer and wet harvest of 2004 has the CWB expected such a high volume of feed wheat, said the release.
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