Canada’s grain industry needs a new and better way to fund plant breeding, says the chair of Canterra Seeds.
It’s unfortunate that Agriculture and Agri-Food Canada is cutting its budget and reducing public investment in research, but people in the grain sector must adapt and move forward, says Jim Wilson.
“We can’t do things the same way that we have,” said Wilson, who farms near Darlingford, Man.
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“There are solutions out there … to increase the amount of funding that’s available for plant breeding.”
WHY IT MATTERS: Public plant breeding programs generate $20 in returns for every $1 invested, but the federal government is cutting its budget for agricultural research.
Wilson made his comments at the Manitoba Crop Alliance annual general meeting in mid-February in Winnipeg. Producers at the event discussed the federal research cuts that had been announced earlier.
Many growers and farm groups are urging the federal government to reconsider its decision and restore funding for agricultural research.
However, Wilson said that instead of grieving the loss, farmers should see it as an opportunity to rethink how crop breeding and development is funded in Canada.
Other countries, such as Australia, have funding models that generate way more money for plant breeding and research.
To keep pace, Canadian farmers may need to contribute more dollars from their pockets, Wilson said.
“What kind of levies? Is it levies to producer organizations? Is it an end-point royalty? A variety use agreement?” Wilson said.
“We’re going to have to put more money in.”
Eric Fridfinnson, who farms in Manitoba’s Interlake, is open to paying more towards research.
He pointed out the obvious at the Manitoba Crop Alliance meeting in Winnipeg — nobody enjoys paying a levy per tonne of production.
“But the reality is that any industry invests a lot (in research),” Fridfinnson said.
“As a farmer, my research budget is very small.”
In an interview, Wilson said only a fraction of grain farmers buy certified seed and pay annual royalties to the developers of that variety. For spring wheat, about 25 per cent of the market is certified seed. Durum is much lower and malting barley is higher, he added.
Levies on grain: Australia vs. Canada
In Australia, farmers pay levies of 1.02 per cent on the production value of their grains, oilseeds and pulse crops. The money goes to the Grains Research and Development Corporation and other organizations.
In Western Canada, levies are paid per tonne of production and vary by crop. The money goes to a provincial commodity group.
SaskWheat, for instance, charges a levy of $1 per tonne for wheat production.
Assuming a farmer in both countries produced 2,000 tonnes of spring wheat and the price at the elevator was C$300 per tonne:
- The levy on the Canadian farmer would be $2,000
- The levy on the Australian farmer would be $6,000.
Source: SaskWheat, Australian Department of Agriculture, Fisheries and Forestry
“On average, you could say 20 to 22 per cent. … The rest of the farmers are using the technology for free, or they bought it once,” Wilson said.
“If we’re going to compete, we need to generate more (plant breeding and research) money from (all) the grain that is grown.”
Canadian grain farmers and the seed industry went down this road in 2018 and 2019, when they tried to develop a new system for royalties on seed.
That road went nowhere. Farmers rebelled against the proposed funding models and nothing changed.
Going down this path again could get nasty, said Nick Matheson, who runs a cattle and grain operation near Stonewall, Man.
“There will be lots of stories (about) royalties, saved seed, trailing rights. It kind of went away, and I think it (the discussion) will be coming back,” he said.
“It’s going to be very divisive.”
