Canadian wheat growers who planted Faller wheat from common seed now have a legal opportunity to sell their 2013 production as milling wheat south of the border.
Scott Nagel, president of ADM Benson-Quinn, said his company has acquired an exclusive licence to import Canadian-grown Faller into the United States.
Nagel said his company will accept deliveries of Canadian-grown Faller at three U.S. locations: Walsh Grain Terminal at Park River, North Dakota, Dakota Midland Grain at Voltaire, N.D., and Markit County Grain at Argyle, Minnesota.
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Canadian growers should call ahead for information on pricing and delivery opportunities and must declare the variety when they enter the U.S.
The grain must come through one of eight designated border crossings at Pembina, Dunseith, Portal and Neche in North Dakota or Roseau, Warroad, Baudette and Lancaster in Minnesota.
Nagel said prices will be comparable to those for similar milling wheat varieties grown in the U.S., although there will be a discount to cover the costs of seed royalties, which will be collected on behalf of the variety’s developer, North Dakota State University.
“There was a fair amount of Faller planted (in Canada) from common seed … and Faller is an unregistered variety in Canada, so it was basically being grown illegally,” said Nagel.
“What we’re doing is … providing a good legal opportunity for producers to receive a fair price for the grain that they produced … because technically, if they (grow it from common seed and) sell it in Canada, they need to sell it as feed wheat.”
Faller is a high-yielding spring wheat variety. Average Canadian yields in 2013 have been estimated at 90 bushels per acre, but protein is generally one or two percentage points below Canada Western Red Spring checks.
Faller is a popular variety among some growers in southern Manitoba, despite the fact that it has never been registered for commercial production.
An estimated 40,000 acres of the variety were planted in Canada this year, including 25,000 acres from common seed.
The remaining 15,000 acres were grown legally, using certified seed, under a closed loop production program that was launched earlier this year.
Total production has been estimated at 3.5 million bu. this year, but according to some industry sources, actual production, including grain from unreported acres, could easily be five to six million bu.
Seed Depot, a pedigreed seed company in Pilot Mound, Man., has commercial rights to sell certified Faller seed in Canada.
John Smith, chief executive officer of Seed Depot, said the arrangement allowing Canadian growers to sell illegal production in the U.S. was viewed as the best solution to a bad situation.
Smith said it is a one-time attempt to clear the system of illegal production.
The one-time program has been endorsed by North Dakota State University and facilitated by the Canadian Plant Technology Agency, which monitors the illegal sale of protected crop varieties in Canada.
“They’re not trying to legitimize the wheat that’s been produced (illegally),” said Smith.
“They’re just trying to work with producers and say, ‘look, we’ll do this one time, for this year only, but that’s it. In the future, it won’t be an option.’ ”
Lorne Hadley, executive director of the Canadian Plant Technology Agency (CPTA), offered a similar view, suggesting the ADM Benson-Quinnn program is a one-time opportunity for growers to get rid of illegally grown wheat.
“This is producers’ opportunity to get their Faller sold off their farms and … get an IP contract (next year) if they want to continue to produce Faller in 2014,” Hadley said.
“There’s no guarantee that this will ever be repeated.”
Hadley said Canadian farmers can sell their 2013 production in the U.S. without fear of legal repercussions. CPTA will not have access to the names of growers who sell Faller in the U.S., he added.
However, producers who retain common seed and replant it again next year shouldn’t expect a similar break.
“This is a program of getting this product out of the marketplace, off the farm and asking producers not to retain any Faller to plant again in 2014 as common seed. Just move it out,” he said.
“If they choose to retain seed that they purchased illegally … grow it again and try to find a market for it, then they’re on their own.… Producers in Manitoba … should appreciate that (Seed Depot), the NDSU and the grain companies have worked very hard together to work this grain through the system, this time. But I wouldn’t expect it to happen again, with this variety or any other.”
Smith said discussions have taken place to determine if Faller should be put forward early next year for commercial registration.
More likely, registration support won’t be sought in Canada until the spring of 2015, he added.
