The Canadian Seed Growers Association continues to operate in the red, which has drawn concern from members.
In 2009, the association ran an operating deficit of nearly $214,000, well above its projected shortfall of less than $100,000.
In 2010, CSGA members expect an deficit of $207,000.
Dale Adolphe, executive director with the CSGA, said the 2009 deficit was largely the result of poor investment income earnings.
Investment returns were disappointing last year and returns for the coming year are also uncertain, he said.
Capital normally held in investments is now being held back in low interest bearing cash accounts.
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In addition, the association was obligated to prop up an underfunded pension plan for CSGA employees.
Declining membership in the CSGA is also affecting the bottom line as is declining revenue from crop certificates issued for certified seed production.
The organization expects to earn less from those certificates again this year because of wet growing conditions in the West.
CSGA members at the group’s annual meeting in Kelowna suggested measures to bring the association’s budget back in the black:
• they passed a resolution to end research and development spending;
• a resolution suggesting that CSGA membership fees and acreage fees be adjusted to assist with budgetary shortfalls was approved;
• a resolution was approved recommending that the CSGA withhold field crop certificates unless the application is accompanied by the fees owing.
Adolphe said preliminary calculations suggest that overall pedigreed seed acreage could be down by 80,000 to 100,000 acres this year.
Most of that would take place in Saskatchewan, where excessive spring rain swamped millions of acres of farmland.
