Faller and Prosper wheats are generally used for milling, but in Manitoba they’re still insured as feed wheats.
That means in the case of a crop insurance payout, a hit of $1.77 a bushel — the difference in the 2015 insured value of Red Spring wheat at $6.26 a bushel versus $4.49 for feed wheat.
But that’s likely to change if the Canadian Grain Commission creates a new permanent class for milling wheats with weaker gluten strengths, says David Van Deynze, the Manitoba Agricultural Service Corporation’s (MASC) claim services manager.
“Our rule of thumb is we will insure things the way the Canadian Grain Commission (CGC) considers them,” Van Deynze said in an interview May 21.
This spring the CGC announced a new interim wheat class for Faller and Prosper, two American Dark Northern Spring wheats, which recently received a three-year interim registration. That means they can be grown commercially in Western Canada.
The interim class, which could become permanent depending on the results of market demand, is intended for milling wheats with weaker gluten strength than most wheats in the Canada Western Red Spring (CWRS) class.
Faller has been grown and sold through identity-preserved contracts the past two years, usually earning close to CWRS prices, depending on demand for high-protein milling wheat. The price difference between Faller and CWRS wheats narrows when there are good supplies of high-protein wheat and widen when protein is short.
The CGC’s new interim class was announced after MASC issued its 2015 contracts.
“It’s pretty tough for use to make up a whole new category after the contract is signed,” Van Deynze said.
“We don’t have something called an ‘interim class,’ but having said that, once the CGC makes a decision we will definitely try and insure it properly,” he said. “That’s always our goal. I can’t promise where it will end up but the reality is we’re somewhat dependent on them making a decision in a permanent sense and we will react to that.”
Under the Canada Grain Act unregistered wheats must receive the lowest grain class they were intended for, which is feed in the CWRS class.
Although MASC’s categories are named slightly differently than the CGC’s main wheat classes, they match up and are as follows with the CGC classes in brackets: Red Spring (CWRS), Durum (Canada Western Amber durum), Prairie Spring (Canada Prairie Spring), Winter Wheat (Canada Western Red Winter), Hard White (Canada Western Hard White Spring), Extra Strong (Canada Western Extra Strong).