Western Canadian Deduction Transition
Prior to August 1, 2017, Manitoba farmers saw two check-offs deducted on spring wheat and barley sold: (1) the Manitoba Wheat and Barley Growers Association (MWBGA) check-off of $0.52 per tonne for spring wheat and $0.50 per tonne for barley, and (2) the Western Canadian Deduction (WCD) of $0.48 per tonne on spring wheat and $0.56 per tonne on barley.
The WCD was established in 2012 by the federal government as a transitional program that ended July 31, 2017 to maintain support for research and market development that had previously been funded by the Canadian Wheat Board (CWB) while provincial wheat commissions were established. The WCD check-off investment was divided as follows:
- For wheat, $0.30 went towards the Western Grains Research Foundation (WGRF) to fund variety development, $0.15 to the Canadian International Grains Institute (Cigi) and $0.03 to cover administration costs.
- For barley, $0.50 went towards the WGRF, $0.03 to the Canadian Malting Barley Technical Centre (CMBTC) and $0.03 to cover administration costs.
At the 2016 Annual General Meeting of the MWBGA, a resolution was passed to ‘authorize the Board of Directors to proceed with the regulatory changes that would be required to complete the transition of WCD to the authority and the responsibility of MWBGA’. On May 1, 2017, the amendment to the Designation Regulation was approved (designation amendments).
Effective August 1, 2017, there is a single spring wheat check-off of $1.00 per tonne, and a single barley check-off of $1.06 per tonne. There was no net increase in check-offs Manitoba farmers saw deducted on spring wheat and barley sales.
The MWBGA assumed all of the funding obligations of the WCD, including core funding for the development of new wheat and barley varieties. The MWBGA is committed to ensuring continuity in Canada’s public breeding programs by providing financial support to breeding programs at AAFC and universities. The MWBGA will also continue to provide funding for the market support services provided by Cigi and the CMBTC to continue to meet the needs of Canada’s key customers. Our western Canadian sister organizations in wheat and barley are also well positioned to continue their work to support grower’s profitability and will also transition to a single check-off.
For more information, contact the MWBGA office.