SASKATOON – The canola growing boom is sparking a major increase in spending on canola research.
In Saskatchewan, as farmers sell more canola, the province’s canola commission takes in more money and that is fueling research projects.
The Saskatchewan Canola Development Commission will collect a projected $1.4 million in check-off revenue in 1994-95. That’s up from 1.1 million last year and nearly double the amount taken in two years ago.
The increase reflects the fact that farmers seeded about 6.5 million acres to canola in 1994, compared with four million acres a year earlier.
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Finding ways to spend all that new-found wealth is not a problem, says SCDC executive director John Christenson.
“Before we had a lot more projects than we had money,” he said. “Now they’re starting to meet.”
The commission has been able to budget for research and development spending of more than $850,000 this year, a whopping 216 percent increase over 1993-94.
“The good news is we can accelerate the (research) programs and get results for many of the problems more quickly,” said Christenson. “This will provide a significant benefit to Saskatchewan’s canola producers.”
The commission collects a 50 cent checkoff on every tonne of canola sold in the province. Farmers can ask for a refund, but few do. Last year, for example, refunds were requested by 1.3 percent of eligible producers, for a total of $14,413.
The commission’s 1994-95 budget projects total revenue of $1.36 million, made up of levy income of $1.35 million, investment income of $45,000 and refunds to farmers of $26,923.
Spending on research and demonstration projects is budgeted at $852,306, up from $269,304 the year before. Another $392,000 is earmarked for market development and consumer awareness projects, up from $115,796.
The increased spending on market promotion reflects the fact that some projects didn’t get off the ground as planned in 1993-94 and were rolled over into 1994-95.
When $150,000 for extension and member relations work and administration expenses of $152,465 are added in, the commission is projecting total 1994-95 expenditures of $1.55 million, which will produce a net loss for the year of $182,507.
Net assets at the end of the year (July 31, 1995) are projected to be $916,280, down slightly from $1.1 million a year earlier.
The commission’s financial goal is to stabilize its assets at around the $1 million mark so a sudden drop in revenue in one year won’t have an adverse effect on the research programs.
While levy income is bound to vary from year to year, Christenson said the commission’s five-year plan projects a stable level of funding.
“We should be able to maintain total revenue and development expenditures at close to $1.4 million annually,” he said.
The commission is currently helping to finance 27 research projects, including agronomic research, varietal development, consumer awareness projects and alternate utilization.
Director David Sefton said the commission is shifting its varietal research focus. Rather than actually developing full-fledged new varieties in competition with corporate breeders, the commission will try to develop strains with specific traits that can then be used to develop new varieties.
“By developing germplasm, we can steer breeding programs to develop varieties with the traits we want,” he said in the annual report.
The commission’s top research priority is improving canola meal quality, followed by improved insect and disease resistance and alternate uses for canola.
