At least two agricultural commissions in Alberta plan to ask their members for permission to return to a non-refundable checkoff now that the provincial government has announced it will give them the right to do so.
The Marketing of Agricultural Products Amendment Act 2017, or Bill 9, which was tabled in the Alberta legislature April 11, allows producer-run commissions to decide if their checkoffs should be refundable or non-refundable. These levies are either collected every time a product is sold or a base amount is charged to each member of the commission.
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However, no changes can be made until commissions take the question to producers in a vote.
“If a commission chooses to make a change to its service charge model, they must conduct a plebiscite to their members to ensure they are consulted,” said Agriculture Minister Oneil Carlier.
Commissions once had the right to make their checkoffs non-refundable, but the government changed the rules in 2009 so that all checkoffs were refundable by request. The money collected pays for promotion, trade missions, research and marketing.
Alberta Beef Producers is going to have a plebiscite, said chair Bob Lowe.
Resolutions have been passed at ABP annual meetings to restore the non-refundable checkoff, but Lowe said the logistics of running a vote could take some time. The association will also have to work with the Alberta Products Marketing Council to see how to proceed.
“It is not going to happen over night,” he said. “We are working with the (Alberta) cattle feeders and it is pretty hard to come to some sort of mutual agreement, but we can ask for a plebiscite together.”
ABP charges a $2 refundable levy and a non-refundable, mandatory $1 national checkoff.
The 2009 change took a large toll on ABP’s budget, cutting available funds in half once the association’s national commitments were made.
It collected more than $10 million last year and rebated $2.3 million with the lion’s share going back to feedlot operations and a smaller amount returned to cow-calf operations.
Alberta Pork is not likely to restore a mandatory checkoff, even though it had one before 2009.
“We will not be pursuing any changes because the levy refunds are very low,” said Charlotte Shipp of Alberta Pork.
Pork producers pay $1 plus GST for a market hog and 25 cents each for exported pigs.
Alberta Lamb Producers plans to take the question to producers to reinstate a mandatory checkoff. The levy is linked to the sale of electronic ear tags for identification.
About one percent reclaim the levy but many of those are large producers, so the organization experiences a seven to 10 percent budget shortfall.
“When you are a really small organization like we are, every dollar and cent counts,” said Darlene Stein, chair of Alberta Lamb.
“We have to use our money wisely, and we are always struggling to find the funds to promote our industry.”
Most producers claimed they asked for a refund for financial reasons rather than dissatisfaction with the organization, she said.
“When you make the checkoff non-refundable, it does take the voice away from producers to be able to issue a protest by collecting their checkoff back,” she said.
“On the other hand, those producers who remain pay for the services of those who chose to get their money back.”
The Alberta Marketing of Agricultural Products Act was established in 1965. It allows producers to create commissions to provide services and support promotion, research and trade. The act also governs the Alberta Agricultural Products Marketing Council, which oversees all marketing boards and commissions.
