Thank you very much.
I appreciate all of the comments we've heard here this morning.
There are a couple of things I want to talk about. There has been some discussion on the advance payments program and on some of the other things I've heard today. One of the things I'm looking at and want to talk about is the importance of the advance payment. Last year, as we were going through the difficulties as far as rail transportation was concerned, the basis spread had been moved up because of the fact that grain companies just were not prepared to put any investment in grain that they were going to end up having to store. The advance payment of course became another tool that was able to be used. We've seen that this also changes it to make it even more flexible.
One thing that people have talked about is of course increasing it, pro-rating it from as far as 2006, I believe it was said, but up to $800,000. I think one of the questions is, how much is it being used? I believe we've had numbers that we've looked at, where from 6% to 10% actually are bumping up against the $400,000 level.
Of course the other statement, then, is how much should you be exposing on the other end when you have an interest-free amount on the first $100,000. I think that's kind of another aspect of it. I've heard people suggesting that we double it and make it $200,000, or $400,000, but I think people recognize just what the consequences of something like that would be versus having the ability to simply guarantee beyond a certain amount. I guess that's one of the things I would appreciate some comment on.
The other thing is that I look at the canola we've had over the last number of years, going from crops that were 25 or 30 bushels to the acre that are now 60 bushels to the acre, as far as the norm is concerned. People talk about the fact that we don't want to have investment into new varieties, or we're worried about it because someone might be making a profit on it. Well, there are farmers making a profit by being able to get 60 bushels to the acre off of that land versus 30. It's also the reason why the most expensive seed is the seed that is sold out first. I think the argument that says there will be this added cost and it will be difficult for farmers is perhaps not on the mark.
I'm wondering if perhaps you'd talk a little bit about the advance payment and perhaps what the significance would be of moving it up. As well, what can we expect with regard to new varieties, whether it be in the canolas or the barleys or the wheats? And also, what are the opportunities for our own plant breeders then to be able to sell our knowledge throughout the world with this opportunity?
Cam, perhaps you could start on some of that.