Value Capture/Value Creation
Sask Wheat is committed to being a part of a system that will maintain and grow funding for wheat research in Canada. This system needs to include a strong continued research effort by the public sector and producers have a strong history of funding public research efforts. Maintaining producer involvement and influence in the direction of research efforts is critically important.
Sask Wheat is a member of the Wheat and Barley Variety Development Working Group, who commissioned a study in 2015 to identify and evaluate options for producer involvement in wheat and barley development.
Sask Wheat is supportive of public plant breeding and farmer directed research and varietal development.
Producers have historically been important funders of wheat research and varietal development and this will continue going forward.
Producers have provided variety development capacity funding through Core Breeding Agreements with AAFC, and the western universities (U of S - CDC, U of A, U of M), as well as research project funding through the Canadian National Wheat Cluster, Genome Canada, and provincial funding intakes.
Producers have also partnered with both public and private sectors for wheat research. For example, Sask Wheat is involved in a public, private, producer partnership with the Crop Development Centre and SeCan to provide funding towards the durum program at the CDC.
In 2017, Sask Wheat, the Alberta Wheat Commission and the Manitoba Wheat and Barley Growers formed the Canadian Wheat Research Coalition (CWRC). The CWRC will facilitate a collaborative approach to producer funding of regional and national research projects including the Canadian National Wheat Cluster and core wheat breeding agreements with AAFC and western universities. The CWRC will be an important vehicle to maintain producer involvement and influence in research and varietal development.
Producers have benefited greatly from contributing to check-off levies that fund varietal development. Research by Gray, Nagy & Guzel found the benefits for western Canadian farmers to be 20 times larger than the total costs of the check-off levy paid by producers.
Sask Wheat does not believe the current federal consultation on Value Capture mechanisms such as end point royalty (EPR) and trailing royalty models have provided sufficient opportunity for producer discussion and input. The options being presented in this consultation are too limiting.
Sask Wheat has not supported either of the options being presented in the federal government consultation. Clearly, most producers are unaware of the discussion taking place around value creation/value capture and the promotion of these two models has not resonated with producers.
Sask Wheat is supportive of farmers’ right to use farm saved seed (FSS). There must be a full discussion with producers and producers must be in full support before making changes that may impact the use of FSS.
Development of additional options is needed. There are other options available to producers to support varietal development efforts, and these need to be explored through further consultation with producers.
The critical feature of any system is the creation of value to producers. If any researcher (federal, university, or private) can develop a new variety with significantly increased value to producers, that variety will be adopted rapidly and there are mechanisms currently in place (contracts) that will allow value capture.
Transforming Canada’s cereals sector through value creation (presentation from Carla St. Croix, Director, Innovation and Growth Policy Division, Strategic Policy Branch, Agriculture and Agri-Food Canada)
Value Creation in Cereal Crop Breeding (presentation of Erin Armstrong of Canterra Seeds, Tom Steve of the Alberta Wheat Commission, and Harvey Brooks of the Saskatchewan Wheat Development Commission at CropSphere 2018)
Returns to Research - Wheat and Barley Variety Development (prepared by Richard Gray, Cecil Nagy, and Alper Guzel for the Western Grains Research Foundation)