Effective on the April 2022 Quota exchange DFNB will distribute sold quota on the quota exchange by 100% iteration.

Producers were first made aware of this change during the fall of 2021. At the 2021 DFNB AGM producer delegates passed a resolution to delay the implementation of the change from January 1, 2022 until April 1, 2022 to provide for additional time for producers to review, discuss and understand the implications of the policy change. At the March DFNB Policy Session delegates were given this opportunity and the feedback provided following this discussion showed a level of comfort with the policy change.

The DFNB Board of Directors made the decision to switch the distribution of sold quota on the exchange from 50% proration and 50% iteration to 100% iteration as the lack of quota available through the quota exchange raised concerns of equity between producers bidding on the exchange. With 50% of the quota being distributed through proration producers may feel the need to inflate their bids to ensure they receive the largest portion possible through proration. Distributing by 100% iteration removes this incentive to show a true depiction of the demand of quota in the province.