The Western Grains Research Foundation is bracing for its annual
October assault.
Every year, in the last couple of weeks in October, thousands of faxes and letters arrive at the WGRF’s Saskatoon office from farmers opting out of the foundation’s research checkoff.
Between 8,000 and 9,000 producers usually opt out, and most of them wait until the last minute.
“Usually a majority come in the last week and a half before the Oct. 31 deadline,” said Lorence Peterson, the foundation’s executive director.
As of Oct. 3, about 4,300 farmers had notified the foundation they didn’t want to participate in the 2000-01 checkoff.
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“I would expect we’ll have around 8,000 or slightly more,” said Peterson, adding that represents only five percent of eligible farmers.
He said there is a core group of 6,000 farmers who opt out every year, while another 2,000 to 3,000 are in some years and out others.
The research checkoff, amounting to 20 cents a tonne on wheat and 40 cents a tonne on barley, is deducted from final payments issued by the Canadian Wheat Board.
The barley checkoff is not applied in Alberta, where the Alberta Barley Commission already administers a refundable checkoff.
Since its inception in 1993-94, the checkoff has raised an average of $3.4 million annually for wheat and $723,000 for barley for plant breeding programs at a number of research institutions across the Prairies. Spending is directed by farmers representing the foundation’s 18 member organizations.
Peterson expects the 2000-01 checkoff will raise about $3.3 million for wheat and $640,000 for barley. The foundation will get the money in February 2002.
This year’s smaller crop and resulting lower wheat board sales program will mean less money for the foundation for the 2001-02 crop year.
“What we receive in 2003 will be quite a bit smaller figure.”
The foundation has a reserve fund that it can draw on in years of low contributions to ensure research programs can carry on uninterrupted. While it drew on the fund in 1999 and 2000 for barley research, it won’t be necessary for 2001.
Research funded by the foundation has helped in the development of higher-yielding varieties, varieties resistant to disease and insects such as fusarium head blight and midge, and innovative quality types such as hard white spring wheat and hulless barley.
“We are now just beginning to see the full value of check-off investment, and our low opt-out rate … suggests farmers are seeing this value for themselves,” said Peterson.
Farmers can opt out anytime after making their first delivery of the crop year. The deadline will be moved up two months next year, to Aug. 31 from Oct. 31.
