Promoting Canadian Oats

but Rail Service Must Respond to Market Demand

Our reputation as a global supplier of food and feed products is at stake.
The market for Canadian grains, oilseeds and special crops is global. The domestic market is not large enough to consume the majority of Canada’s agricultural production; we must export. Our consistent high quality, assured safety, and trusted Western Canadian Grain and Oilseeds Exportsreputation sets the benchmark that our competitors strive for. Transporting our product from farm to customer requires a complex supply chain with multiple actors to operate in a timely, efficient and cost effective way. Unfortunately, Canada’s trading partners and competitors have taken notice of our transportation challenges. When grains and oilseeds are not delivered in full quantities on time, it means lost sales domestically and internationally. To safeguard Canada’s reputation into the future, we must ensure our global customers that our domestic supply chain can deliver on time, every time.

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.

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