The Canadian Wheat Board (CWB) is delivering more choice for durum producers through improvements to the Fixed Price Contract (FPC) for the 2004-05 crop year. Beginning today, farmers will be able to choose whether to lock-in a fixed price contract for their durum or to stay in the durum pool accounts.

Farmers have from today until October 31 to commit grain to a durum FPC. The deadline was extended from July 31 to the end of October so farmers can have their crop in the bin before signing a contract.

"Farmers recognize that real choice means real alternatives," said Ken Ritter, chair of the CWB's farmer-controlled board of directors. "The FPC, like the other Producer Payment Options offered by the CWB, gives farmers more control over the price they receive for their crops."

The FPC will enable farmers to lock in a price on a portion of the durum that they plan to commit to CWB delivery contracts in 2004-05. The FPC values for durum will be based on the Pool Return Outlook (PRO) less a discount for risk, time value of money and program administration costs. The fixed price will be available daily via the CWB Web site (www.cwb.ca), or by calling the CWB toll-free line at 1-800-275-4292. Fax on demand, a self-service option, is also available 24 hours a day at this number.

Farmers who want to take advantage of the FPC must commit at least 20 tonnes of durum, and there is a 100 000 tonne limit for the durum FPC program. There is also a guaranteed minimum delivery, which guarantees farmers will be able to deliver at least 65 per cent of the volumes they commit to Series A, B and C delivery contracts combined. The minimum delivery guarantee should be used as a guideline to determine the amount of durum to commit to the FPC prior to acceptance of durum for delivery.

Under the FPC, when farmers deliver durum to an elevator, they receive the initial payment. An additional payment, representing the difference between the initial payment and the fixed price is issued by the CWB within 10 business days. These deliveries will be outside the durum pool and therefore will not be eligible for adjustment, interim or final payments.

More information on the durum FPC and the other producer payment options is available on the CWB Web site or by calling the toll-free line.

Controlled by western Canadian farmers, the CWB is the largest wheat and barley marketer in the world. As one of Canada's biggest exporters, the Winnipeg-based organization sells grain to more than 70 countries and returns all sales revenue, less the costs of marketing, to Prairie farmers.