Have you checked out initial payment levels?

As usual, initial payments for wheat, durum and barley are starting the new crop year at ugly levels. The government guaranteed initial payments on CWB grains have been set at less than 70 per cent of the total expected price. However, that’s 70 per cent of the total price at port position. After deductions, they look particularly dismal. On No. 1 CWRS wheat with 12.5 per cent protein, the initial payment after average Saskatchewan freight and handling is about $3.20 a bushel. No. 1 durum with 12.5 per cent protein has an initial payment of about $3.40 a bushel. Only a limited amount of feed barley is likely to be sold into the export market. That’s just as well when the initial payment is only about 70 cents a bushel after deductions. On two-row malting barley, the initial payment is right around $2 a bushel. Little wonder that many producers choose the CWB’s Early Payment Option and pay a discount so they can receive 80, 90 or 100 per cent of the Pool Return Outlook near the time of delivery. I’m Kevin Hursh.

www.hursh.ca

Kevin Hursh, PAg, CAC

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