Alberta Canola Producers Commission members have voted to increase the commission’s producer levy to $1.75 per tonne of canola — the first such hike since it was raised to a dollar 22 years ago.
The vote — part of the commission’s annual general meeting Jan. 22 — tallied a total of 63 votes with 51 of those cast in the affirmative. The new levy amount will come into effect Aug. 1. The service charge comprises 90 per cent of Alberta Canola’s revenue each year.
Alberta Canola has run a budget deficit six of the past seven years. During those six years the commission has drawn on reserve funds built from surpluses accumulated between 2004 and 2017.
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Early in 2024, canola producers were offered two choices to increase revenue: service cuts or a levy increase. Many members had already shown support for a levy increase prior to the proposal.
In a video shown at a grower engagement meeting in December, Rick Taillieu, Alberta Canola’s director of engagement and analytics, said the rate hike would allow the commission to balance the budget, increase research investment and allow the building of reserves “so that we can absorb any future shocks due to crop failures or dramatic drops in acreage.”
Over the past year Alberta Canola engaged extensively with members and consultancy firms to arrive at the final service charge amount.
Consultants Hyde Management from Winnipeg found Alberta Canola to be in the most financially precarious position of all the Alberta crop commissions studied.
