Saskatchewan pulse farmers are paying double the checkoff they did in 2001, while research spending by their producer association has risen one-quarter of that amount.
More investment in research was the justification given by Saskatchewan Pulse Growers for the increase that has seen the provincial checkoff grow to one percent of producers’ cheques.
The association successfully convinced producers there was a “$20 million shortfall” in annual research funding for the pulse industry and growers overwhelmingly voted in favour of raising their checkoff.
Board members and executives told the province’s farmers it was necessary to increase spending to a level of $4 million, which would trigger a matching $4 million from the province and $12 million from the federal government.
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But while the pulse checkoff has risen 100 percent over the past two years, research spending has risen 25 percent. Audited financial statements show the group’s 2003 spending levels at $1.57 million, up from $1.26 million in 2001.
Association executive director Garth Patterson has an explanation.
“There’s always a lag in these things,” he said.
The levy increase happened in two stages. It moved from 0.5 to 0.75 percent in 2002, and from 0.75 to one percent at the end of fiscal 2003. As a result, the effect of the one percent checkoff won’t be felt until 2004.
Patterson assured growers the stated goal to increase the association’s research and development expenditures to $4 million by 2005 will be met.
“We’re on track,” he said.
The association has budgeted $2.85 million toward research and development expenditures in 2003-04. The following year it should hit the $4 million target.
Moose Jaw, Sask., pulse farmer Vaughn Crone was a vocal critic of the checkoff when it was first proposed.
“I sure hope to see that line in the research shortly, because it is what (the levy increase) was sold on.”
Crone wishes there was a better system for holding the pulse board accountable, such as a refundable checkoff, but for now he is willing to take Patterson at his word.
“It obviously takes some time to get the wheels in motion on some of these things,” Crone said.
While the producer association says it’s on track to meet its goals, there are concerns whether matching government investment will be as high as once hoped.
Patterson said there has been “really good leveraging of funds” from federal sources. Ottawa contributed as much as $4 for every producer dollar on some of last year’s quality analysis projects.
But there is a bleaker outlook for the provincial component.
“It appears that they can maintain their current coverage. But we haven’t received any signals that they’re going to be able to increase and continue to match,” said Patterson.
“I don’t think they’re going to have the gas in the tank to follow us as we accelerate.”
