GUELPH, ON – 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 payments and pool return outlook (PRO) for the six wheat pools managed by the Wheat Marketing department.
The initial prices act as an advanced payment on the PRO, estimated at 60 per cent of total value. The PRO estimation is based on current market conditions and how various classes of wheat should expect to perform in the marketplace. The number will change as the year progresses, but announcing an initial figure allows wheat farmers to understand the starting point for the year as they decide whether or not to take advantage of the Grain Farmers of Ontario wheat pool.
“The Pool allows growers to diversify their risk, while working with a pool that is dedicated to watching and monitoring the markets, and any proceeds, less expenses, go back to the pool participants. Farmers can move grain at harvest while taking advantage of post-harvest markets to spread out cash flow,” says Todd Austin, Manager of Wheat Marketing, Grain Farmers of Ontario. “The Pool historically hits market average or better, so it is a good insurance policy when combined with other marketing strategies.”
Grain Farmers of Ontario’s initial payments for the 2018 wheat marketing year are: