Pulse Growers Extend Temporary Levy Reduction

August 03, 2017

Saskatchewan Pulse Growers (SPG) is extending its temporary reduction of levy collected on pulses and soybeans grown in Saskatchewan for another year.

The reduction, which saw the levy decrease from 1 to 0.67%, went into effect on August 1, 2016 and was set for a one-year period. SPG has now extended the 0.67% levy rate until July 31, 2018.

SPG’s decision to temporarily reduce the levy, and now to extend that reduction, were made in large part due to record acres and strong prices in recent years, and an interest to draw down SPG’s surplus, which was accumulated during a period of strong growth.

“By temporarily reducing the levy to 0.67%, SPG is looking to bring levy revenue closer in line with the organization’s operating expenses and to reduce the accumulated surplus,” says Corey Loessin, SPG’s Chair. “The level of pulse acres planted in Saskatchewan this year is second only to last years record acres. We recognized that we were still in a situation where a 1% levy rate may result in SPG adding to its accumulated surplus. Based on that, we have chosen to extend the reduced 0.67% levy rate for an additional year.”

The SPG levy is collected based on a percentage of gross sales (plus GST), and is deducted at the first point of sale. SPG’s levy revenue has increased with expanding acres and high market prices for pulses, moving from $13 million in levy revenue in 2013/14 to $22 million in 2015/16. With the reduced levy rate, SPG is estimating 2016/17 levy revenue to be $16.5 million, which will result in a reduction of its accumulated surplus.

“Even with a temporarily reduced levy, SPG will continue to make strategic investments and capitalize on opportunities that enhance the profitability of pulse growers,” says Carl Potts, Executive Director of SPG. “SPG continues to fund areas of research and development that deliver improved varieties and address agronomic limitations facing pulse crops in Saskatchewan, while also investing in processing and utilization research. This work, in conjunction with our pulse and lentil promotional programs, and the strong focus on market access and transportation by our national associations, will allow us to continue to develop the pulse and soybean industry and create new market demand.”

Accountable to and funded by growers, SPG’s strategic direction is guided by a seven member, grower-elected, Board of Directors. SPG’s mission is to provide leadership for profitable growth for Saskatchewan pulses.

For more information please contact:

Rachel Kehrig                   
Director of Communications & Market Promotion 
Saskatchewan Pulse Growers             
Cell: (306) 230-6488                                          
Email: rkehrig@saskpulse.com                                

Andrea Lauder                   
Communications Manager
Saskatchewan Pulse Growers                                                        
Cell: (306) 250-6858
Email: alauder@saskpulse.com

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