A new program unveiled today by the Canadian Wheat Board (CWB) will create a flexible grain delivery system for farmers, enabling them to trade delivery periods among themselves to suit their business needs.

“Of all the things that the CWB can do to improve service to producers, delivery opportunity is where farmers want us to focus,” said Ken Ritter, chair of the CWB's farmer-controlled board of directors.

The Delivery Exchange Contract (DEC) pilot program is available for the 2006-07 crop year to farmers delivering CWRS in a region spanning most of southern Saskatchewan (rail zones CN #3 and CP #12). Adding to the array of marketing choices now available through the CWB, the program was designed after extensive consultation with producers, who have frequently and consistently indicated a desire for more flexibility, predictability and control over delivery.

According to the spring 2006 CWB Producer Survey, desire for control over delivery timing was a strong motivation for farmers to support marketing change. Of those who indicated a desire for change, 92 per cent agreed that they would like to choose when to deliver and get paid full value for their grain.

“The CWB is evolving to satisfy those concerns and offer farmers real choice,” Ritter said. “We're moving to address delivery issues. Combined with the full slate of Producer Payment Options -- which provide farmers flexibility to price and be paid for their grain the way they want – the choices for producers continue to expand.”

Beginning August 1, 2006, participating farmers will be able to exchange their delivery periods with other farmers in the program, allowing them to deliver more of their crop earlier or later in the marketing year, according to their own needs. They will commit tonnage, which will be assigned equally to four delivery exchange contract periods (August-October, November-January, February-April and May-July).

Farmers who are interested in trading delivery can access a listing of available opportunities through the CWB Web site or by calling the CWB Business Centre at 1-800-275-4292. They will then advise the CWB of their interest and be provided with a list of names in order to make private arrangements for trading their delivery periods with another participating farmer. The exchanges will be recorded by the CWB.

The DEC will have 100-per-cent acceptance, similar to Guaranteed Delivery Contracts. There will be a volume limit of approximately 10 to 15 per cent of CWRS production in the region. Sign-up will be on a first-come, first-served basis. The size and geographic scope of the program is being limited during the pilot period to ensure trading and delivery operate efficiently, while still providing a meaningful test of the program.

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.