Pulse Growers Reduce Levy Effective August 1, 2016
July 04, 2016
Saskatchewan Pulse Growers (SPG) is reducing the levy collected on pulse and soybean crops grown in Saskatchewan from 1% to 0.67% for a one year period effective August 1, 2016.
The decision to reduce the levy, made by SPG with approval from the Agri-Food Council, was driven by record acres and prices in the pulse industry in recent years and a significant accumulated reserve. “At SPG, we recognize that increased pulse acres and growing market demand has led to higher profitability for pulses,” says Tim Wiens, Chair of Saskatchewan Pulse Growers’ Board of Directors. “As the Saskatchewan pulse industry has succeeded in reaching new levels, SPG levy revenue has grown with it. We have reached a point where the revenue SPG has collected from the levy is currently exceeding the organization’s operating expenses. It was with this in mind that we at SPG felt it was time to make a change that would reflect the organization’s current financial needs and allow us to keep more money in the pockets of growers.”
The pulse 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 the market prices for pulses, moving from $13 million in levy revenue for the organization in 2013/14 to an anticipated levy revenue of $25 million in 2015/16.
“We are working with pulse buyers who collect the levy on SPG’s behalf to ensure their systems are set to switch to 0.67% from 1% effective August 1, 2016,” says Carl Potts, Executive Director of Saskatchewan Pulse Growers. “We want to make this change as seamless as possible for growers and pulse buyers.” SPG will consult with growers to get their views regarding the size of the levy beyond July 31, 2017.
If growers are deducted 1% for levy after July 31. 2016, they should contact SPG at 306-668-0350 or firstname.lastname@example.org and SPG will make necessary adjustments.
SPG will continue to utilize levy funding to make significant investments that benefit pulse growers. “SPG believes that we have the ability to continue to deliver significant value to growers,” explains Wiens. The organization will continue to provide funding in research to address production opportunities and agronomic challenges, such as its recent investment of $23 million to the pulse-breeding program at the Crop Development Centre. Investments into market development to establish new demand for Saskatchewan pulse crops will also continue.
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 the Saskatchewan pulse industry.
For more information please contact:
Director of Communications & Market Promotion
Saskatchewan Pulse Growers
Cell: (306) 230-6488
Saskatchewan Pulse Growers
Cell: (306) 250-6858