SASKATOON — Steady and strong acres and prices for pulses over the last few years have prompted to reduce the check-off levy from 0.67 per cent to 0.6 per cent of gross sales at the first point of sale.
The reduction applies to all pulses and soybeans across the province and will take effect Aug. 1 to align with the start of the new crop year.
“SPG acknowledges stable pulse acres and consistently strong pulse prices … which has led to SPG revenues exceeding expenses over the last number of years,” chair Winston van Staveren said in a June 11 press release.
Saskatchewan levies are in the middle when compared to other provinces. In Alberta, the pulse grower checkoff is 0.75 per cent and in Manitoba it’s 0.5 per cent.
The levy has been at 0.67 per cent since 2016, which was the last time there was a reduction. It’s reviewed periodically by the board, and this year it was decided that the rate could be reduced while still maintaining investments and expenses.
The decision was made with approval from the province’s .
“This year, we (the board) reviewed it, and we decided that the rate can be reduced,” van Staveren said in an interviewe.
“And we’ll still have enough funds to make investments in high priority research and farm market development and breeding and extension programs that’ll help farmers.”
High priority areas for research are root disease, weed management, key infrastructure and market development.
The organization has seen a significant increase in its unrestricted surplus, which totalled $12.6 million at the end of the last fiscal year.
This was much higher than previous years, even with stable and high market prices. The change is estimated to reduce revenues by about $1.5 million per year, and gradually lower the unrestricted surplus.
In addition to the surplus, SPG has a fully funded revenue variability reserve designed to support the commission if there’s unexpected tough times.
“We’re happy to make this change,” said van Staveren.
“We want to continue doing the good work that we do, but we don’t want to collect excess revenue, so we want to keep that where it should be: in farmers pockets. And we’ll still be financially secure enough, and we’ll be able to make great investments.”
SPG is working to ensure pulse buyer systems will be updated for this switch, and notes that any growers deducted 0.67 per cent after Aug. 1 should contact the organization to work out the refund.
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