Western Grains Research Foundation (WGRF) has announced that rates for the Wheat and Barley Check-off have been increased effective for the 2005/06 crop year to provide additional research funding for the development of new wheat and barley varieties.

Since inception in the 1993/94 crop year, the WGRF-administered Check-off has been set at $0.20/tonne for wheat and $0.40/tonne for barley. It is deducted from the Canadian Wheat Board (CWB) final payment to producers and from producer payment option programs. The WGRF Check-off does not apply to barley produced in Alberta, where a separate check-off is administered by the Alberta Barley Commission.

The new rates for the WGRF Check-off will be $0.30/tonne (less than one cent per bushel) for wheat and $0.50/tonne (one cent per bushel) for barley, effective for the 2005/06 crop year. Old rates will still apply on remaining CWB final payments for grain delivered in the 2004/05 crop year.

With normal yields, the increase will mean approximately an additional $1.75 million collected annually for investment in wheat and barley breeding research.

"There hasn't been an increase to the Check-off rates since their inception 10 years ago and we need to keep up with inflationary costs to continue to turn out improved varieties," says Dr. Keith Degenhardt, a Hughenden, Alta., producer and WGRF Chair. "There's been strong farmer support for the research Check-off, with opt-outs typically at around only six percent. With the additional funds, we can concentrate on getting the best varieties out of farmers' investment, knowing our breeding capacity will remain strong."

As with all Check-off investment, the additional funding is also likely to result in further public investment in related research, points out Lanette Kuchenski, WGRF Executive Director. "Strong farmer support of research through the Check-off allows WGRF to leverage federal and provincial dollars to support further breeding and research activities that directly benefit Prairie growers."

The rate increase was backed by unanimous support by the 18 member organizations of WGRF, she notes. This included western Canadian producer groups representing wheat, barley, oat, flax, pulse and canola; general farm organizations; former co-op grain handlers; Agriculture and Agri-Food Canada and the Canadian Wheat Board. Input from the agriculture industry in general also aided the approval process.

The new rates were made effective by an Order in Council as prescribed by the Canadian Wheat Board Act, says Kuchenski. "We are appreciative of the government support and assistance in getting this change in place."

In the short term, the WGRF Board has decided to place funds derived from the increase into existing Reserve Funds for the Wheat and Barley Check-off. The Reserve Funds are in place to ensure sufficient cash flow in years of low tonnage due to poor crops. As reserves become sufficient, the Board will then allocate further funds derived from the increase to wheat and barley breeding programs, based on research priorities.

The new Check-off rates are part of a broader updating of the Check-off system, says Kuchenski. "We regularly review administrative approaches and research progress to meet the demands of rising global competition, evolving issues in genetics and the goals of efficient, equitable and effective research investment."

This spring, WGRF completed new long-term funding agreements with Agriculture and Agri-Food Canada (AAFC) and the University of Saskatchewan's Crop Development Centre (CDC). Those agreements, which cover the next five to 10 years, include updated funding allocations toward different wheat classes and barley types, including updated breeding targets for specific goals such as yield, quality, disease and pest resistance, maturity and adaptational needs. These funding agreements build on previous 10-year agreements with the institutions.

"The increased research funding doesn't necessarily have to follow the allocations outlined in the new agreements," explains Kuchenski. "There may be specific areas that would provide greater returns from additional funding or where the WGRF Board feels the dollars will best benefit farmers."

Part of the process toward new funding agreements were two independent reviews of the Check-off - one concentrating on wheat and one on barley - that provided analysis and recommendations for the future. A key recommendation of both reviews was to increase the Check-off rates to avoid a substantial drop in breeding capacity.

WGRF is also examining options for improving the Check-off mechanism to make it more equitable. For example, the current mechanism based on the CWB final payment does not capture a large portion of domestic feed grain.

Farmers are reminded that they are eligible for an income tax credit based upon their contributions to the Wheat and Barley Check-off. More information on the Wheat and Barley Check-off Funds, the tax credit, and the long-term funding agreements is available on the WGRF Web site, www.westerngrains.com.