The Canadian Wheat Board's farmer-controlled board of directors has approved an enhanced set of choices for farmers who want to independently price their grain or receive payment in ways that suit their business needs.

"Since taking over the CWB in 1999, farmer-directors have made it a priority to respond to producers' need for flexibility and choice," said board chair Ken Ritter, a farmer from Kindersley, Saskatchewan. "The Producer Payment Options (PPOs) allow them to take direct control of their cash flow and grain pricing, if they wish."

PPOs were first introduced in 2000-01 and have been enhanced and expanded several times to suit farmers' needs. They now include Fixed Price and Basis Payment contract options, a Daily Price Contract option based on U.S. prices and Early Payment Options.

Enhancements approved by the board last week will include:

• Giving farmers the ability, as of Sept. 1, 2006, to lock in a futures price a full year before harvest. This will allow producers to take advantage of market rallies or favourable exchange rates.
• Developing a force majeure (Act of God) option that would release farmers from contracts if substantial production loss occurred from unforeseen events beyond their control.
• Providing greater clarity for farmers about the way basis values are calculated once the crop year has begun.
• Creating a full-scale Basis Payment Contract program for malting barley, beginning Feb. 27, 2006.
• Streamlining administration of the PPO delivery process to allow farmers to be paid more quickly.

Ritter said the changes -- suggested by farmers through focus groups, surveys and phone calls -- were made to improve services and expand producer choices, in recognition of their financial needs.

"Many producers are realizing that the availability of Producer Payment Options, in addition to the traditional CWB pool accounts, means they can take advantage of spot prices and futures markets without eroding the significant benefits they derive from pooled returns and single-desk selling," he said.

"As western Canadian farmers, this gives us the best of both worlds."

Producers can get more information about the PPOs by calling 1-800-ASK-4-CWB, contacting their local Farm Business Representative or checking the CWB Web site at www.cwb.ca.

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 to over 70 countries and returns all sales revenue, less marketing costs, to Prairie farmers.