Eleven years after Saskatchewan canola growers set up a research group, the province’s mustard growers have followed suit.
Last week the provincial government gave its formal approval to a producer-directed Saskatchewan Mustard Development Commission.
“We have established the commission at industry’s request in an effort to increase the profitability of producers through the introduction of new varieties, the creation of new mustard products and the development of new market opportunities,” said Saskatchewan agriculture minister Clay Serby.
Growers will be assessed a levy of half of one percent on any mustard they sell. The checkoff is mandatory but producers will have two opportunities a year to request a refund.
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The levy will be administered by the Saskatchewan Canola Development Commission. Executive director Roy Button applauds mustard producers for taking this step.
“It’s a good investment to maintain viability and stay competitive in the industry,” he said.
Saskatchewan produces more than 80 percent of Canada’s mustard crop.
Growers seeded 700,000 acres this year, which are expected to yield 172,000 tonnes of seed, down slightly from the 10-year average of 189,000 tonnes.
A much smaller crop in 2002 generated farm cash receipts of $47 million for the province’s growers.
Button expects the levy will raise $350,000-$380,000 a year from an estimated 3,000 growers. If it’s like the canola checkoff, only about four percent of farmers will ask for a refund.
“A lot of producers recognize the value of investing money in research,” he said.
Most of the money will fund Agriculture Canada projects related to agronomy, plant breeding and product development. There is potential to generate cost savings by operating joint research programs with the canola council.
The commission will charge an administration fee based on an hourly rate. Button isn’t sure what that fee will amount to, but producers should figure 15-20 percent of their levy dollars will pay administrative costs.
Looking forward
Shaunavon, Sask., grower Brett Meinert, interim chair of the commission’s board of directors, said he is pleased the province approved the industry’s request to establish a levy.
“We expect to have the new commission up and running in the near future. I look forward to working with the new board to take initial steps in defining research, development and extension priorities for our industry.”
The commission will hold a strategic planning meeting in the next few months. It wants to develop a list of possible spending priorities and get feedback on that list from mustard growers attending the 2004 Crop Production Week.
Spending priorities could include market development and extension programs.
“The other question is policy issues. Do you put any money into that?” said Button.
No date has been set for when crop buyers will start assessing the levy. They need at least one month’s notice to ensure proper procedures for collecting it are in place.
“It’s a matter of how quick we can get a letter out to the buyers,” said Button.
