Prairie farmers are getting their money’s worth from the research checkoff on wheat and barley, according to an independent study.
Every check-off dollar collected by the Western Grains Research Foundation and invested in wheat research generates a return of at least $4.40, according to the study.
For barley, the rate of return is $12.40 for every dollar invested through the checkoff, with the higher rate reflecting the lower barley acreage compared to wheat.
The study, commissioned by the WGRF, was jointly conducted by Tesco Consulting Ltd. of Regina and three agricultural economists from the University of Saskatchewan.
Read Also
Moe and Harrison tour Ag In Motion site
Ag in Motion 2025’s more than 560 exhibitors haven’t let the smoke blanketing the province dampen their enthusiasm as the Langham farm show got under way on Tuesday morning.
Hartley Furtan, one of those economists, said the actual return on investment is undoubtedly greater than the numbers produced by the study.
“These are strong returns,” he said. “But we were also conservative in the way we approached it.”
For example, the study calculated the value of new varieties produced as a result of WGRF by evaluating increased yields.
Researchers didn’t directly consider additional value created by improved agronomic traits such as higher protein, increased disease resistance, benefits to soil or drought resistance.
However, improved agronomic performance would result in increased acreage and that was factored into the analysis.
It takes six to 12 years to develop a new cereal crop variety, so the benefits from 10 years of WGRF-funded research are just now beginning to show up in farmers’ returns.
“The estimates should be considered as reflecting the minimum return producers can expect from checkoffs invested by WGRF on their behalf,” said Furtan.
During the period covered by the study, the checkoff was 20 cents a tonne for wheat and 40 cents a tonne for barley, deducted from CWB final and program payments.
The barley checkoff does not apply in Alberta.
The check-off rates were increased this year to 30 cents a tonne for wheat and 50 cents for barley, the first increase since it was introduced in 1993-94.
Furtan said the outcome of the study was consistent with results from similar studies in Australia, Europe and the United States.
