proposed Alberta Wheat council Left meets Right

[gustgd]

Media Release

Group working to form an all-wheat commission in Alberta



(October 11, 2011)—Alberta wheat producers will be asked this fall and winter about their views on forming an all-wheat commission in the province. Their opinions will shape a proposed commission, which could be up and running by Aug. 1, 2012.

While current discussions about Western Canadian wheat are inevitably linked to the Canadian Wheat Board and the federal government’s plans to change the way the CWB operates, the proposed commission’s purpose would not be to replace any of the CWB’s or Western Grains Research Foundation’s current responsibilities and activities.

“We’re responding to a gap in Alberta’s crop sector and the need for greater investment in research for plant breeding and agronomics in wheat,” says Kent Erickson, the co-chairman of the steering committee for the proposed all-wheat commission.

“Wheat production has been losing acres in Alberta even though worldwide demand for wheat is growing,” says steering committee co-chair Lynn Jacobson. “One of the main purposes of the proposed commission would be to ensure wheat production is competitive, preferred and profitable.”

In 2008, the Alberta Winter Wheat Producers Commission resolved to look at producer interest in creating an all-wheat commission. After market research conducted on behalf of AWWPC found the majority of producers support forming an all-wheat commission, the steering committee was formed in December 2010. It has since developed preliminary plans to form the proposed commission.

“We will present our plans to producers, gauge their support and respond to feedback, then seek provincial government approval for the commission,” Erickson says.

Erickson and Jacobson say the proposed all-wheat commission is closely modelled after other provincial commissions. Producers would make up the organization’s membership and the commission would be funded through refundable check-off dollars, in this case a proposed 70¢/tonne.

Alberta’s existing winter wheat and soft white wheat commissions represent just five per cent of the province’s annual wheat production. Wheat, however, is one of the province’s most important crops, accounting for about 7.6 million tonnes of production on about 6.6 million acres over the past five years. Some 85 per cent of wheat produced in Alberta is Canadian Western Red Spring (CWRS) and Canadian Western Amber Durum (CWAD).

The steering committee will announce its consultation schedule later this fall.

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For media information see the attached background or contact:

Kent Erickson, Co-chair

Alberta Wheat Commission Steering Committee

780.842.8490 / tekfarms@mcsnet.ca

or

Lynn Jacobson, Co-chair

Alberta Wheat Commission Steering Committee

403.739.2153 / ljacob@shockware.com

[gustgd]

Backgrounder part 1

Background: October 11, 2011
Group working to form an all-wheat commission in Alberta
A group of Alberta wheat producers is working to launch an all-wheat commission in the province.
While current discussions about Western Canadian wheat are inevitably linked to the Canadian
Wheat Board and the federal government’s plans to change the way the CWB operates, the
proposed commission’s purpose would not be to replace any of the CWB’s or Western Grains
Research Foundation’s current responsibilities and activities.
“We’re responding to a gap in Alberta’s crop sector and the need for greater investment in research
for plant breeding and agronomics in wheat,” says Kent Erickson, the co-chairman of the steering
committee for the proposed all-wheat commission.
“Wheat production has been losing acres in Alberta even though worldwide demand for wheat is
growing,” says steering committee co-chair Lynn Jacobson. “One of the main purposes of the
proposed commission would be to ensure wheat production is competitive, preferred and
profitable.”
In 2008, the Alberta Winter Wheat Producers Commission resolved to look at producer interest in
creating an all-wheat commission. The next year, market research conducted among more than
300 diverse wheat producers found 58 per cent support for an all-wheat commission. The steering
committee was formed in December 2010 and has since developed preliminary plans to form the
proposed commission.
“We will meet with wheat producers in the coming months to present our plans, gauge their support
and respond to their feedback, then seek approval for the commission from the minister of
Agriculture, Food and Rural Development,” says Erickson, who is also chairman of the AWWPC
Jacobson, also chair of the Alberta Soft White Wheat Producers Commission, says the steering
committee has developed “strong and viable strategic business and startup plans that pave the way
to having an all-wheat commission up and running on Aug. 1, 2012.”
Other steering committee members include co-chair Lynn Jacobson of Vauxhall, Peter Pepneck
also of Vauxhall, Terry Young of Lacombe, Greg Porozni of Vegreville, Ron Heck of Fairview and
Ron Nerland of Morrin.
Alberta has 21 agricultural producer groups for everything from beef to barley—and including winter
wheat and soft white wheat—although it lacks a commission to represent the vast majority of wheat

[gustgd]

backgrounder part 2

producers. Collectively, winter wheat and soft white wheat account for just five per cent of the wheat
grown in the province each year.
Yet, wheat is one of the province’s most important crops, accounting for about 7.6 million tonnes of
production on about 6.6 million acres. Some 85 per cent of wheat produced in Alberta is Canadian
Western Red Spring (CWRS) and Canadian Western Amber Durum (CWAD).
“For several years, we’ve seen significant challenges in wheat production—across Western Canada
wheat production is declining while worldwide demand is growing,” Erickson says. “It’s crucial for
Alberta producers to be competitive if wheat is going to remain a profitable and preferred crop.”
He adds the proposed Alberta all-wheat commission would contribute to wheat’s competitiveness
by representing the interests of Alberta producers across all wheat classes. As well, the proposed
commission would provide leadership that improves the demand, agronomic competitiveness and
profitability of Alberta-produced wheat and contributes to policy development and advocacy
initiatives that strengthen capacity and encourage investment in the wheat industry.
Erickson says plans are to closely model the proposed commission after other provincial
commissions. Producers would make up the organization’s membership and would elect directors
and delegates to oversee the commission’s strategic plans. A CEO and staff with strong ties to
industry would carry out those plans.
Also like other existing producer organizations, the proposed commission would be funded
through refundable check-off dollars, in this case a proposed 70¢/tonne. This check-off would
replace the check-off AWWPC and ASWWPC members currently pay to their respective
organizations.
Jacobson says “our strategic plan conservatively forecasts revenues of about $3.5 million within
three years of startup. We estimate $3 million a year would be directly invested in strategic priorities
to provide substantial value to our producers.”
The steering committee for the proposed all-wheat commission is currently seeking funding from
various sources and in early November will announce its plans for a series of producer meetings
and workshops this winter.
—30—
For further information, contact:
Kent Erickson, Co-chairman
Alberta Wheat Commission Steering Committee
780.842.8490 / tekfarms@mcsnet.ca
or
Lynn Jacobson, Co-chairman
Alberta Wheat Commission Steering Committee
403.739.2153 / ljacob@shockware.com

[wd9]

At least ya know they aren't going to work to get rid of the CWB!

[ajl]

I can smell another check off coming.
Jacobson is one of those who has
campaigned to keep the noose of the CWB
around for us. The reason wheat is
declining is AB farmer too busy growing
canola. As well countries like Russia and
the Ukraine will continue to take market
share in wheat and another checkoff aint
going to help that.

[parsley]

The Central Planning Agency of Alberta have
polished their fingers with sticky again. Your cash
will stick easily to their fingers with that kind of
plot, advanced by civil servants. Tthey must be
Stalin's cousins boated to scandanavia, and then
headed for Canada, eying up somebody's cash.
The shortsighted Entitled...all they see is a wallet.
Pars

[malta]

I don't support this idea, especially with the present steering committee.

[wd9]

Kinda depends how much a tonne the checkoff would be but we all have been paying it thru CWB historically. A buck a tonne would be steep. What i don't understand is why not a cereals commission. Oats, barley, wheats, ad infinitum. ABC already exists, they could do it all for now and the next election would be interesting. Too many fricken directors in this business. Agree or disagree gusty? Or is this about a lot more people taking trips?

And yes by my response i agree with Parsely. Hey Parsely, do you know what the definition of blogging is?

[charliep]

Will leave the discussion to others. I might highlight the initial work on this project was initiated by the Alberta Winter Wheat Producers Commission as a Growing Forward Project. The proposal is now being moved forward. There is a process in place in Alberta to approve a new commission and this will involve lots of debate.

[charliep]

I will highlight again there are lots of r&d funding models around the world. gustgd - You have highlighted GRDC in Australia. Private sector approaches that parsley favors in Europe.

One of the challenges for WGRF moving ahead is that there is no federal legislation for a national commission/checkoff (could be wrong here so correct me). The processes are less defined in Saskatchewan and Manitoba than they are here in Alberta.

[parsley]

Charliep, you'd most likely advocate a
government agency for regulating daily-sex
checkoffs if it meant funding for govt depts.
What is blogging, wd, I'll bite. Pars

[charliep]

On the wheat commission side, it is industry that is asking - not government driving. There is a process for having a new commission established in Alberta. As indicated, will be lots of discussion.

[FarmRanger]

The GRDC Australian model isn't refundable. I
wouldn't be in favour of this. If it's refundable
(voluntary) it will be accountable.

Sure there is always the freeloader who will
benefit from the funding of others, but that is still
preferable to the development of bloated
unaccountable bureaucracies that inevitably
results from forced participation.

[rockpile]

I agree with Ranger, that to be legitimate, it should
be voluntary. But Charlie, I have a question. No
doubt farmers benefit from research and market
development. But from my many years of
observation, processors and consumers are the real
benefactors of this investment - better product,
cheaper ingredients, cheap, high quality products.
So why does the primary producer always pick up
the tab when the benefactors are many? And yes, I
know Govt invests as well but that commitment has
been shrinking every year for decades now.

[FarmRanger]

The GRDC Australian model isn't refundable. I
wouldn't be in favour of this. If it's refundable
(voluntary) it will be accountable.

Sure there is always the freeloader who will
benefit from the funding of others, but that is still
preferable to the development of bloated
unaccountable bureaucracies that inevitably
results from forced participation.