The Canadian Wheat Board is offering a new program that pays premiums for high-protein wheat.

The new Guaranteed Delivery Contract program is for Number 1 CWRS with 13.5 percent protein or higher. Farmers can sign-up and get a guaranteed delivery window. Premiums range from $6.50 to $16 per tonne, above the Pool Return Outlook.

The program was developed in response to this year's lower-quality wheat crop.

"What this program does is allow us to time deliveries from farmers with when customers need the grain," explains marketing manager Leif Carlson. "With some of what we've seen in Australia and their harvest problems, we feel the value of high protein has been increasing. This is a way to capture that value from customers and pay farmers for it."

He notes they're hoping the program will also help address some of the grain movement challenges facing the CWB.

"Grain movement, in particular for high quality, could be an issue throughout the year. So one aspect of this program is that we're looking for grain not only immediately, but all the way through to October of next year...this will help us execute on our sales program throughout 2011." he says.

~ Thursday, December 23, 2010 ~