Check-off Information

Why are there two check-offs deducted from my wheat cheque?

There have been significant changes in check-offs since the Canadian Wheat Board’s (CWB) single desk marketing system was disbanded in 2012. Currently there are two mandatory but refundable check-off systems in place for wheat, replacing the former, single deduction system that was in place through the CWB. Both check-offs are in place to ensure maximum value is achieved for producer investments.

Sask Wheat check-off

The Saskatchewan Wheat Development Commission (Sask Wheat) was established by the Saskatchewan Government in June of 2013 and collects a check-off of $0.52 per tonne, which became effective on August 1, 2013. This check-off will ensure there is funding in place for research, market development and promotion related to Saskatchewan-grown wheat. Through Sask Wheat’s elected Board of Directors, Saskatchewan producers will have a direct say in how these funds are invested.

Western Canadian Deduction for Wheat

The second check-off is the transitional Western Canadian Deduction for wheat. It is a transitional check-off of $0.48 per tonne that was implemented by the Federal Government in 2012 to ensure that funding for varietal research and marketing continues until the provincial commissions in Saskatchewan, Alberta and Manitoba are fully established and operational.

Of the $0.48-per-tonne transitional check-off collected through the Western Canadian Deduction on wheat, $0.30 goes to the Western Grains Research Foundation (WGRF), $0.15 goes to the Canadian International Grains Institute (CIGI), and the remaining $0.03 is used for administration.

The Western Canadian Deduction is set to expire on July 31, 2017. By then it is expected that a new or renewed funding model for research and market development will be established. In the interim, Sask Wheat will be working closely with other provincial commissions, WGRF and CIGI to ensure the benefits to producers from check-off investments are maximized.

Return on Investment for Check-Off

Producer investments in crop research have a proven track record of high return on investment. A study conducted by the University of Saskatchewan found that producer investments in varietal development research provide an average return on investment of 20 to 1 ($20.40 for every $1 invested) to producers.

In light of this information, we hope that you will choose to invest your wheat check-off dollars with the Saskatchewan Wheat Development Commission. Your support, along with that of the other wheat producers in Saskatchewan, will allow the important research and market development work that is underway to continue. You may also be eligible to claim a tax credit on your levy contributions.

 

Learn more about the SR&ED Investment
Tax Claim Program

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