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Canadian Wheat Board
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In 1935 the Canadian Wheat Board (CWB) was established as an exclusive crown agency to export wheat. Today, the Canadian Wheat Board:

  • markets prairie grown wheat and barley for international export or domestic human consumption across provincial borders or for Canadian livestock consumption;

  • maintains the quota system and producer identification network;

  • coordinates rail movement of grain; and,

  • pools sales and returns all profits back to producers.

About 85% of the wheat and about 45% of the barley grown in western Canada is marketed through the Canadian Wheat Board. The Canadian Wheat Board buys the producers' wheat or barley and sells it to international or domestic clients. Because wheat and barley are sold through the Wheat Board, they are referred to as board grains. Other types of grain such as canola, flaxseed, oats and rye are called non­board grains.

In order to ensure the right grains and grades of grains are brought into the elevator system to meet customer requirements and to provide equal opportunity for all farmers to sell their grain, the Canadian Wheat Board sets delivery quotas. Farmers deliver their grain to local elevators and terminals according to these quotas.

Canadian grain producers who wish to sell through the Canadian Wheat Board are required to have a Delivery Permit Book and a Producer Identity Number. In this book each producer lists the number of cultivated acres and kinds of crops that will be seeded that year. The Canadian Wheat Board gathers this information to find out how best to establish quotas for each crop. The quota system gives all producers relatively equal opportunity to sell their Wheat Board grains.

A quota period is a set time when certain quantities of specific grains can be delivered to the local elevator. There may be up to a dozen quota periods in a year, depending on grain sales. During each quota period farmers are allowed to sell a certain number of bushels of a specific grain.

Grain producers selling through the Canadian Wheat Board receive an initial payment for their grain when it is delivered to the elevator. This part payment is established by the federal government prior to the start of the crop year. The crop year runs from August 1st of one year to July 31st of the next year.

The Canadian Wheat Board also coordinates the rail movement of grain from country points to port terminals for storage and export.

The Wheat Board sells the grain during the crop year, accumulating revenue. The price the wheat and barley is sold at depends on what is happening in the major wheat and barley importing and exporting countries of the world. Some factors affecting the price of wheat and barley are:

  • economic situation in these countries;

  • grain production in importing and exporting countries;

  • agricultural policies of foreign and Canadian governments;

  • grain stocks remaining from previous years (world supply); and,

  • export subsidies.

At the end of the crop year, the Canadian Wheat Board deducts its expenses and sends producers a final payment. If the price received from customers during the year is less than the initial payment, the federal government absorbs the loss. Adjustment payments may be made if prices increase significantly over initial payments levels.

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