The Manitoba government is going to change the Keystone Agricultural Producers’ (KAP) refundable funding checkoff, Agriculture Minister Ralph Eichler announced at Ag Days Jan. 17.
“The current funding structure creates needless and excessive administration costs for farmers and KAP and purchasers of agricultural products,” Eichler said. “A review of the system is something that the industry has been requesting for a long time. This government is committed to doing just that. Consultations will begin immediately on how to implement those changes to what the government considers a more efficient alternative system.”
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KAP president Dan Mazier welcomed Eichler’s announcement. KAP has long complained about the current system that collects a membership checkoff from Manitoba farmers when they sell products, such as a grain to an elevator.
While grain companies are obliged by law to collect the refundable checkoff, some aren’t doing it, KAP general manager James Battershill said in a telephone interview.
The current checkoff is an administrative headache in different ways, he said. Some farmers pay upfront, but pay the checkoff when they sell produce and then have to seek a refund, Battershill said. Sometimes buyers collect more than KAP’s annual membership fee of $200 and farmers have to seek a refund.
It all costs KAP money, which could be better spent working for farmers, Battershill said.
The current system is also often frustrating for farmers and the companies that buy their produce, he said.
KAP will consult with members on alternatives. British Columbia’s approach might work here, Battershill said. In B.C. farmers are encouraged to submit their general farm organization membership fee directly by tying it to a government service to farmers. Farmers who don’t want to belong can still get a refund.
Ian Robson, a National Farmers Union (NFU) member, said Manitoba should adopt Ontario’s plan. There farmers can select one of three general farm organizations to support through a checkoff, including the NFU.
That would require changes to Manitoba’s legislation, which designates one group as Manitoba’s general farm organization. That’s currently KAP.
