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Canada's Western Grains Research Foundation explores new check-off options
Saskatoon, Saskatchewan
November 30, 2006

The Western Grains Research Foundation (WGRF) is evaluating options for broadening its research check-off on wheat and barley.

With the growing use of barley for the domestic livestock industry and with the growing use of wheat for the production of ethanol, the research check-off is leaving out a growing percentage of western Canadian wheat and barley production.

“At present, we are stretching the check-off dollars collected on export grains to fund research for domestic industrial uses such as ethanol, as well as for our livestock industries,” explains Lanette Kuchenski, WGRF Executive Director. “To fund plant breeding for those uses, we need to collect the check-off on those uses.”

Since its inception more than ten years ago, the WGRF check-off has been deducted from final payments issued by the Canadian Wheat Board for wheat (including durum) and barley. Alberta barley is not covered by the WGRF check-off, but it is covered by a separate check-off administered by the Alberta Barley Commission.

The WGRF check-off is $0.30 / tonne of wheat (less than one cent per bushel) and $0.50 / tonne of barley (just over one cent per bushel). The money collected is allocated to research institutions for use in wheat and barley breeding programs. The targeted benefits include higher yields, better quality, stronger disease and pest resistance, improved agronomic traits, and characteristics for new market opportunities.

An independent Return on Investment study in 2005 found that every dollar invested in wheat development by WGRF returns a minimum of $4 to farmers. Every dollar invested in barley returns a minimum of $12.

The producer money invested by WGRF draws additional provincial and federal contributions to plant breeding. One of the goals of the WGRF is to have wide producer access to publicly funded varieties.

“Broadening our check-off collection mechanism would substantially increase the research funds available,” notes Kuchenski. “We would anticipate a proportional increase in matching funds from government.”

For 2007, the WGRF check-off on wheat is expected to collect approximately $4.3 million. If non-CWB sales were included, estimates point to an additional $1.2 million that could be collected.

The 2007 check-off for barley is expected to collect about $830,000, while missing an estimated $1.1 million from domestic sales.

While deducting the check-off from Canadian Wheat Board final payments is an efficient collection mechanism for export wheat and barley, changes in the single desk mandate of the CWB are being debated. Changes at the CWB might also necessitate different mechanisms for check-off collection.

Representatives of 18 different farm organizations from across Western Canada govern the activities of the WGRF. Although many of these organizations have a policy position on the Canadian Wheat Board, the WGRF is neutral.

The WGRF is working to have proposals available by next summer for how the check-off collection could be broadened and the legislative changes that would be required. There will be extensive consultation with producer stakeholders.

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