The Canadian Wheat Board is offering premiums to wheat growers in the catchment area for the Hudson Bay grain port of Churchill, Man.
The board said Tuesday it will also offer wheat growers storage payments for wheat kept on-farm to be handled through the northern port.
“The timing of the Churchill shipping season requires a large volume of grain grown the previous summer to move out from the country as early as the beginning of July,” said Greg Arason, the CWB’s interim CEO, in a release.
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“This program is designed to ensure that grain is on hand so farmers can benefit from the freight savings that Churchill offers.”
Farmers who take part in the 2007-08 Churchill Corridor guaranteed delivery contract (GDC), beginning today, will receive a premium of $2.50 per tonne, plus monthly storage payments of $1 per tonne for Nos. 1, 2 and 3 Canada Western Red Spring (CWRS) wheat stored on-farm until it is called for shipment to the port.
The Churchill GDC will result in “significantly higher” payments to farmers than the Churchill freight advantage rebate (CFAR), which it replaces, the CWB said. Future Churchill GDCs could extend to grains other than CWRS, it added.
The board’s Churchill GDC sign-up application form includes a list of designated delivery points in the Churchill catchment area, which includes points in northern and eastern Saskatchewan and western Manitoba. The CWB said it guarantees it will call the tonnes for delivery by July 31.
