CFIA tackles reforms - The Western Producer

NEWS THE WESTERN PRODUCER | WWW.PRODUCER.COM | JUNE 7, 2012
With fewer than eight weeks remaining before the beginning of the 2012-13 crop year, the CWB has concluded grain handling agreements with only two companies, Cargill and the South
West Terminal near Gull Lake, Sask. | FILE PHOTO
CWB | CONTRACTS
Timing critical for new CWB agreements
Grain growers take wait-and-see approach | CWB was ‘optimistic’ in estimating grain handling
BY BRIAN CROSS
SASKATOON NEWSROOM
The CWB continues to negotiate
grain handling agreements with
major grain companies, CWB officials
said last week.
However, farmers and industry
insiders say that with less than two
months remaining before the beginning
of the new crop year, timing is
becoming critical.
Kevin Bender, president of the
Western Canadian Wheat Growers
Association, said grain growers are
interested in committing a portion of
their 2012-13 wheat crop to CWB
pools.
However, many are reluctant to
sign up until the CWB concludes
handling agreements with more
companies, he added.
“It is certainly a valid concern,” said
Bender.
“There are people that want to
sign a CWB contract but if they’re …
not near a Cargill or somebody that
has a grain handling agreement
with the CWB, what are they supposed
to do?
“They (the CWB) said they were
confident that they were going to
have handling contracts with all the
major handlers, but it hasn’t happened
yet.
“There is some concern because
farmers want to start signing up some
contracts for off-combine delivery or
harvest delivery.”
The CWB has concluded grain
handling agreements with only
CARGILL ELEVATOR SITES
1
16
Alberta:
❏ Lethbridge
❏ Rycroft
❏ Vegreville
❏ Vermilion
❏ Viking
Alta. Sask.
Man.
2
Edmonton
Calgary
two companies — Cargill and the
South West Terminal near Gull
Lake, Sask.
Cargill has primary elevators at 29
locations in Western Canada, including
seven in Manitoba, 12 in Saskatchewan
and 10 in Alberta.
It also owns grain export terminals
in Thunder Bay and Vancouver.
The CWB unveiled details of its new
pooling contracts in late March.
The harvest pool, which runs
from Aug. 1, 2012, to July 31, 2013, is
2
1
Saskatchewan:
❏ Antelope
❏ Balcarres
❏ Clavet
❏ Congress
❏ Kindersley
❏ Melfort
16
Prince Albert
Saskatoon
1
❏ Moose Jaw
❏ N. Battleford
❏ Raymore
❏ Rosetown
❏ Rowatt
❏ Yorkton
11
16
Regina
Manitoba:
❏ Dauphin
❏ Elm Creek
❏ Elva
❏ Morris
Winnipeg
❏ Nesbitt
❏ Oakner
❏ Swan River
❏ Winnipeg
Source: Staff research | MICHELLE
HOULDEN GRAPHIC / GOOGLE MAP
open to durum and malting barley,
as well as Canada Western Red
Spring, Canada Western Red Winter
and Canada Prairie Spring Red
wheat.
Signup for that pool ends Oct.31
and delivery is guaranteed by July 31.
The CWB’s other pooling option,
the early delivery pool, runs from
Aug. 1 to Jan. 31, 2013, and has a
signup deadline of Sept. 28.
In a recent interview with Reuters
News Agency, CWB president Ian
White declined to say how much
grain has been committed to the
CWB since details of the pool programs
were unveiled.
Earlier in the year, he estimated
that a voluntary CWB could handle
as much as one-third of the wheat
produced in Western Canada during
the 2012-13 campaign.
Bender said that appears to be optimistic.
“I’m not going to say he’s wrong …
but I wouldn’t have estimated it to be
that high,” he said.
“I would have thought 10 to 20 percent
… would have been more realistic.
Just from talking to farmers, I have
trouble thinking they’re going to get
that much grain.”
Ward Weisensel, the CWB’s chief
operating officer, said CWB officials
are mindful of the tight timelines.
“Discussions continue and we’re
hopeful that we will be able to make
announcements very soon.”
Wade Sobkowich, executive director
of the Western Grain Elevators
Association, said progress is being
made between the CWB and WGEA
members, which handle 90 percent
of Canadian wheat destined for
export markets.
However, negotiations are complex
and the process is taking more time
than anticipated, he added.
Sobkowich said the recent Canadian
Pacific Railway strike, which
caused logistical delays and delivery
disruptions, created extra work for
grain companies.
CHANGES TO CWB
PRODUCER CONTRACTS
3
The CWB has made changes to permit
and contract processes for the 2012-
13 crop year to align with new IT
system requirements:
• Landlords and interested parties
who share in returns can no longer
be included in the contract signed
by the actual producer. Separate
contracts must now be signed for
each landlord and interested party
sharing producer returns.
• Ten-digit CWB producer ID numbers
will become eight-digit customer
numbers. For existing producer
ID numbers, the customer
number will be the same as before,
minus the two-digit prefix (00- or
01-).
• A CWB delivery permit is no longer
required. Producers with existing
producer ID numbers are not
required to renew. New producers
can call the CWB at 800-275-4292
to be assigned a CWB customer
number.
• As of June 18, cancellations of cash
tickets will only be permitted within
15 calendar days of the issue
date. This also applies to replacement
cash tickets that change the
class, grade and/or protein on
previously issued cash tickets. Any
protein changes must be within
0.5 percent of the original protein
reported. These provisions apply
for the remainder of the crop year.
• As of Aug. 1, CWB will no longer
issue export licences for shipments
of wheat, durum and barley. All
special licences issued on an annual
basis will automatically expire
July 31. For the current crop year,
individual export licences will continue
to be issued until July 31.
Source: CWB | WP GRAPHIC