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. |