Promoting Canadian Oats

Movement to our neighbours needs priority

The challenges faced by Canadian oats serves as an example of agriculture’s difficulties shipping to our closest customers.

Making our morning oatmeal is a North American ritual. Canadian oats supply companies in Canada, the U.S. and Mexico with great product. Indeed many Canadian crops are integrated into the milling, malting and processing businesses right across the continent. Surprisingly then, for a country so heavily dependent on trade with the U.S., our grain transportation system continues to struggle to make our only neighbour a priority, despite the demand from both America and Mexico.

Increasing Dairy Cows Milk Production by Feeding Oats
Increasing Dairy Cows Milk
Production by Feeding Oats
POGA is seeking proposals for qualified firms to provide comprehensive facilitation management (including locating a dairy where this research will be undertaken) for the following project:

The Scientific Research and Experimental Development (SR&ED) Program is a federal government program that encourages research and development by providing tax-based incentives.

By using levy contributions to finance research and development work that benefits Western Canada oat producers, the SODC, MOGA, and AOGC are able to participate in this program and distribute these tax-based incentives to producers.

The program gives registered oat producers access to investment tax credits (by means of cash refunds and/or reduction to taxes payable) for their levy contributions that are spent on qualifying research.

  • For 2014, Saskatchewan producers may claim 20.2% of their levy contributions as a qualifying SR&ED expenditure on their federal tax return.
  • For 2014, Manitoba producers may claim 29.5% of their levy contributions as a qualifying SR&ED expenditure on their federal tax return.
  • For 2014, Alberta producers may claim 14.5% of their levy contributions as a qualifying SR&ED expenditure on their federal tax return.

Investment tax credits may be claimed by filing form T2038(IND) for farm individuals or T2SCH31 for farm corporations.

POGA is happy to see the continued expansion of the monitoring efforts on grain transportation.  The government announced that it will continue to closely monitor grain transportation levels and lift penalties for mandatory movement at this time.  Consistent with the recommendations of the Crop Logisitics Work Group, of which POGA is a member, this change is appropriate only with the commitment to closely monitor developments.  Movement to southern corridors has not improved as much as other aspects of the system and we hope the railways will continue to make strides in this area in particular.  

You can read the Government's press release here.

Industry has heard from our customers that recent transportation challenges have resulted in negative impacts to Canada’s reputation as a reliable shipper of quality grains, oilseeds, and pulses. These negative impacts would be very detrimental if they occur again and become a regular occurrence. There is a need for the entire sector to ensure that the challenges with grain shipments do not happen again. The Order in Council (OIC), which establishes minimum grain volume shipments, is scheduled to expire on March 28, 2015, and consideration should be given to whether a renewed OIC would help prevent these negative impacts.

The grains, oilseeds, and pulse sector has seen tremendous growth over the last number of years. The size of last year’s crop was approximately 76.1 million metric tonnes (MMT). This is significantly less than the 97.1 MMT seen in the 2013-14 crop year but also significantly higher than the 21 year average of 68.2 MMT. Productivity and crop evolution will continue to boost yield , despite annual fluctuations. A renewed OIC should support a sector that continues to provide growth opportunities and contributes to the growing Canadian economy. This will demonstrate to our customers and to investors that Canada is committed to the agriculture sector’s growth and to creating an investment climate that is positive for the entire value chain.

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