Guelph, ON – June 26, 2019 – Grain Farmers of Ontario, the province’s largest commodity organization, representing Ontario’s 28,000 barley, corn, oat, soybean and wheat farmers, today announces the initial payment price amounts for the six wheat pools managed by Grain Farmers of Ontario.
The Grain Farmers of Ontario Wheat Pool markets wheat on behalf of its farmer-members throughout the year. Each year, Grain Farmers of Ontario announces an initial payment figure to help wheat farmers understand the starting point for the year if they take advantage of the Wheat Pool.
Grain Farmers of Ontario’s initial payments for the 2019 wheat marketing year are:
|Wheat Class /Initial Prices |
|Wheat Class/ Initial Prices|
|SWW (Pool A) $140||SWR (Pool E) $138|
|HRW (Pool B) $155||CER (Pool F) $138|
|HRS (Pool C) $166||Feed (Pool G) $125|
“Our Wheat Pool allows growers to diversify their risk. Farmers can move grain at harvest while taking advantage of post-harvest markets to spread out cash flow. Additionally, any proceeds, less expenses, go back to the pool participants,” says Todd Austin, Manager of Wheat Marketing, Grain Farmers of Ontario. “The Wheat Pool historically hits market average or better, so it can be an important component of a good marketing strategy.”
Grain Farmers of Ontario has also posted the Pool Return Outlook (PRO) at
https://gfo.ca/marketing/wheat-marketing/ . The initial prices act as an advanced payment on the PRO. This initial payment is typically estimated at 60 percent of the total net return to the farmer. The PRO is then updated throughout the harvest season based on market conditions before further payments are calculated and distributed.
Choose Pre-Pool or Post-Pool Contracts
Grain Farmers of Ontario offers pre-pool and post-pool contracts. Pre-pool contracts offer an advance above the initial price to bring the value closer to 70 per cent of the current cash price. Pre-pool contracts must be established with Grain Farmers of Ontario prior to delivery. Post-pool contracts allow for delivery into the pool after September and into the spring. Post pool contracts are established by September 30.
Markus Haerle, Chair
Victoria Berry, Communications
Grain Farmers of Ontario is the province’s largest commodity organization, representing Ontario’s 28,000 barley, corn, oat, soybean and wheat farmers. The crops they grow cover 6 million acres of farm land across the province, generate over $2.5 billion in farm gate receipts, result in over $9 billion in economic output and are responsible for over 40,000 jobs in the province.