Saskatchewan Pulse Growers (SPG) is reducing the levy collected on pulse and soybean crops grown in the province.
Effective Aug. 1, 2016, the levy will be reduced for a one-year period to 0.67 per cent from the current 1.0 per cent.
READ MORE: Big jump in lentil crops seeded in Saskatchewan for 2016
SPG said the decision to reduce the levy has been driven by record acres and prices in recent years, resulting in the accumulate reserve growing significantly.
“At SPG, we recognize that increased pulse acres and growing market demand has led to higher profitability for our pulses,” said Tim Wiens, SPG board chair.
“We have reached a point where the revenue SPG has collected from the levy is currently exceeding the organization’s operating expenses.”
In 2013-14, SPG collected $13 million in levy revenue. The anticipated revenue for 2015-16 is $25 million.
READ MORE: Crops in good to excellent condition across Saskatchewan
The pulse levy is based on a percentage of gross sales (plus GST) that is collected at the first point of sale.
Wiens said the change will better reflect the organization’s needs while putting more money in the pockets of producers.
Money collected from the levy is used by the SPG to make investments in the industry, including research and market development.
READ MORE: FCC report projects farm equipment sales will grow
SPG said any growers who are deducted a 1.0 per cent levy after July 31, 2016 should contact them at 1-306-668-0350 or via email.
The organization said it will consult with producers regarding the ongoing size of the levy beyond July 31, 2017.