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Farmers

2011-12 Fixed Price Contracts

Please ensure the tonnage you commit to this Producer Payment Option (PPO) program does not exceed your delivery contract tonnage. If you cannot deliver 100 per cent on this PPO contract, you will be subject to pricing damages.

User guide

What is it?

The Fixed Price Contract (FPC) is a pricing option that offers a flat price for wheat. The flat price incorporates wheat that has already been priced by the CWB and the current market value of wheat that the CWB has not yet priced.

FPCPlus is a pricing contract that offers a minimum flat price for durum. The price is calculated by deducting a discount for risk, administration and time value of money from the Pool Return Outlook (PRO). Producers are eligible for a rebate of any unused portion of the risk discount at the end of the crop year.

View our PPO programs at a glance (PDF) to help determine which choices are right for you.

The CWB reserves the right to withdraw these programs at any time, without notice, subject to market conditions.

Where do I find prices?

Prices are offered each business day from 3 p.m. to the expiry time posted on the daily pricing schedule

Prices offered are based on in store Vancouver or St. Lawrence values. You must deduct country handling and freight to determine your farmgate value.

Quoted prices are based on a reference grade.

Reference grades

Wheat
CWRS No. 1 CWRS 13.5
CWHWS No. 1 CWHWS 13.5
CWES No. 1 CWES
CPSR No. 1 CPSR
CPSW No. 1 CPSW
CWRW No. 1 CWRW 11.0
CWSWS No. 1 CWSWS
Durum
CWAD No. 1 CWAD 13.0

For your convenience, the CWB will e-mail you the prices for all programs. When you subscribe to this free service, you can choose to receive all prices or only those for the class or classes of wheat you grow.

Subscribe to the Daily PPO Prices bulletin

To help you make pricing decisions, we offer an online price pace calculator. The calculator gives you an estimate of the amount of wheat you've priced.

Pricing pace info

How do I get paid?

When you deliver your grain to the elevator you advise the agent to apply the tonnes to your FPC.

You will receive your payment in two parts:

  1. the initial price at the elevator for the grade you delivered and
  2. an additional payment from the CWB on any tonnes that are fully priced within 10 business days of the cash ticket being reported to the CWB. If you delivered more tonnes than you priced, you will receive the additional payment when you price them. The additional payment is always based on the reference grade initial price.

Additional payment calculation: FPC contract price – reference grade initial price + incremental payment value – feed spread adjustment (if applicable).

Once you’ve received your additional payment, you will have received the full value of your pricing contract. You are not eligible for any adjustment, interim or final payments.

When can I deliver against the contract?

You must sign a delivery contract with the CWB and wait for delivery calls.

What can I deliver?

All grades except sample and mixed grades can be delivered against your FPC. However, feed grades are subject to an additional feed spread adjustment.

What are my risks?

Quality risk: FPCs are for milling grades. You can apply feed grades but they are subject to an additional feed spread adjustment. Feed grades are: No. 4 CWRS, No. 4 CWHWS, No. 3 CWSWS, CW Feed and CW General Purpose.

The feed spread adjustment adjusts the value of your contract to reflect the current spread between milling quality and feed values. The feed spread adjustment is posted on the daily pricing schedule. It is locked in on the cash ticket settlement date.

Production risk: FPCs require 100 per cent delivery. If you are short on your contract, you have the option of assigning the contract to another producer or buying out the contract. The buyout cost is based on market conditions. We also offer force majeure on the FPC program to protect against production risk.

Who can help me if I require more information?

You can contact Program Service Representative:

Mavis Willson 204-250-4469

You can call 1-800-275-4292.

Historical price charts

There are charts on the Web site showing historical basis pricing information.

Terms and conditions

Please ensure you understand how the contracts work before you commit tonnage to a pricing contract.