Western Canadian Deduction Transition

The WCD, which currently funds wheat variety development research and the market development activities of the Canadian International Grains Institute (Cigi), will be ending on July 31, 2017.

Saskatchewan wheat producers approved a motion to assume the transitional Western Canadian Deduction (WCD) under the Sask Wheat check-off at the Sask Wheat Annual General Meeting on January 11, 2017.

The WCD was established in 2012 to provide financial capacity to support market development and research efforts until the newly established provincial grower commissions had the organizational capacity to assume the responsibilities. The WCD check off for wheat is $0.48 per tonne – $0.30 goes to the Western Grains Research Foundation (WGRF) to support research efforts while $0.15 goes to the Canadian International Grains Institute (Cigi) for market development. $0.03 are used for administrative expenses. The Sask Wheat check off is $0.52 per tonne; so collectively wheat growers pay an even $1.00 per tonne towards these efforts.

The Sask Wheat resolution emphasized that Saskatchewan wheat producers will face no net increase in check-offs. The amount will remain at $1.00/tonne.

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With the resolution ratified, Sask Wheat is now working with the Saskatchewan Agri-Food Council to ensure all provincial regulatory requirements are met to adjust the levy collection system and provide a seamless administrative transition on August 1, 2017.

The unanimous adoption of the resolution followed the announcement of a Memorandum of Understanding (MOU) signed by Sask Wheat, the Alberta Wheat Commission and the Manitoba Wheat and Barley Growers Association. This collaborative MOU will further support and strengthen variety development and market support initiatives with the goal of improving net returns for western Canadian wheat producers.

The MOU formally confirms the commitment and focus of the three wheat commissions to sustaining funding for the technical support and education services that Cigi provides to the wheat value chain and its customers, and core wheat breeding activities currently being funded through the WCD. The commissions will be working together to set collaborative research priorities for funding commitments at or above the current levels funded through the WCD.

For more information on the Western Canadian Deduction, please CLICK HERE.

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