Alberta Canola Producers Commission members will vote on an increase to the organization’s levy at the annual general meeting in January.
The organization is proposing to raise that rate to $1.75 per tonne and taking it to a January 22 vote. If approved the new rate will represent the first bump in the levy since it was increased to $1 in 2003.
Research and consultation with producers on the increase has been going on for most of 2024. Its most recent round has been through grower engagement meetings throughout the province and on the web, where it was discussed in a video by Rick Taillieu, Alberta Canola’s director of engagement and analytics.
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A consultancy firm from Manitoba found the commission to be in the most financially precarious position of all the Alberta crop commissions studied. It also has some of the lowest service fees, which make up 90 per cent of the commission’s operating revenue each year.
Taillieu pointed out that Alberta Canola’s 2023 revenue was just over $5 million — far less than similiar ag commissions in the province — on expenditures of just under $6 million.
“Increasing to $1.75 would move us from $4.9 to the $8.5 million range for service charge revenue, which is more than Alberta Pulse but less than Alberta Grains, in the $12 million range,” Taillieu said.
The consultants presented four levy scenarios: the current service charge, $1.50 per tonne, $1.75 per tonne and $2 per tonne. The first would see a cut to member services of at least 20 per cent. The second would balance the budget but would result in little new spending.
“But rebuilding reserves or taking on any new investments would require absolutely no crop failures in the next 10 years, and it would require one of those higher-growth scenarios that we don’t feel is realistic,” he said.
A $2 per tonne levy raise the possibility of having too much grower money in reserve.
“So therefore (the board) backed away from the $2 per tonne, which took us to $1.75 which is the sweet spot,” Tallieu said.
Taillieu said that rate will allow Alberta Canola 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.”
Charles Simoneau, Alberta Canola vice-chair, said farmer support for an increased levy has been in play since the commission’s 2023 AGM where a motion to do so was set before the floor.
However, the commission board wanted to make sure it arrived at a number that would cover its bills with some left over.
“It became pretty clear that a 50 cent increase wasn’t even going to get us back to a 2003 level. We’d be negative,” said Simoneau. “So 75 cents (increase) was a good ending position for us.”
Alberta Canola’s AGM will take place January 22-23, 2025 at the Red Deer Resort and Casino. Members can also vote online.
