The federal government is providing a one-time payment to the Wheat Board to help it transition to an open market on August 1st.

$349 million will help defray certain transition costs. These includes pension and post-employment benefits, severance, computer systems, decommissioning costs and winding up the final statuatory pool accounts.

"This one-time injection will put the CWB on stable footing as a competitive marketing option for Canadian farmers," said Federal Agriculture Minister Gerry Ritz.

The CWB is in the process of downsizing because it will not need as many employees without the single desk selling system.