Western Grains Research Foundation (WGRF) has received over $300,000 in excess railway revenue, the first allocated under new Canada Transportation Act legislation passed in 2001. The funds will be added to the principal of the WGRF-administered Endowment Fund, which supports a variety of crops research to benefit western Canadian farmers.

"The federal government, with input from the railways and various agriculture industry players, identified the WGRF Endowment Fund as a good place for these dollars, due to low administrative cost, strong impact and the ability to benefit all western Canadian crop producers equally," says Lanette Kuchenski, WGRF Executive Director. "The WGRF Board agreed to accept this arrangement and, as it does with all Endowment Fund investments, to invest the funds generated in crop research projects deemed of greatest investment value and benefit to crop producers."

Delivering excess railway funds directly back to individual producers was deemed unfeasible and, along with other options considered, was predicted to carry costs that would severely cut or eliminate entirely the funds available to benefit producers, says Kuchenski. "With the low-cost administration already in place for the Endowment Fund, railways can simply provide a direct payment to WGRF and ensure nearly the full amount is added to the Fund principal."

The Endowment Fund base of $9 million in producer funds was established in 1983, when these funds were transferred by the federal government from the discontinued Prairie Farm Assistance Act, a forerunner of today's crop insurance program. WGRF has allocated the annual interest generated by this Fund - $750,000 to $1 million in peak years - into crops research projects.

"This research investment often returns up to and sometimes greater than 10 to 1 producer benefit and by investing only the interest, this benefit occurs annually." says Dr. Keith Degenhardt, a Hughenden, Alta., producer and Chair of WGRF. "We see this as providing excellent investment value to farmers."

All funding decisions are made by the WGRF Board, which is made up of representatives of 18 diverse agricultural organizations representing the majority of producers across the Prairies, notes Degenhardt. This includes wheat, barley, oat, flax, pulse, canola and BC grain producer organizations; general farm organizations across all three Prairie Provinces; former co-op grain handlers and marketer. Funds are awarded to the projects viewed to represent the best combination of investment value and benefit to western Canadian crop producers.

"The Endowment Fund has filled an important niche by often supporting research of importance to farmers that wouldn't otherwise receive adequate funding," says Degenhardt. "Many Endowment Fund projects represent leading-edge research to help the industry understand and deal with major production issues that directly impact producer pocketbooks."