Saskatchewan Pulse Growers (SPG) is extending its temporary reduction of levy collected on pulses and soybeans grown in Saskatchewan for another year.
The reduction, which saw the levy decrease from 1 to 0.67%, went into effect on August 1, 2016 and was set for a one-year period. SPG has now extended the 0.67% levy rate until July 31, 2018. SPG's decision to temporarily reduce the levy, and now to extend that reduction, were made in large part due to record acres and strong prices in recent years, and an interest to draw down SPG's surplus, which was accumulated during a period of strong growth. The SPG 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 expanding acres and high market prices for pulses, moving from $13 million in levy revenue in 2013/14 to $22 million in 2015/16. With the reduced levy rate, SPG is estimating 2016/17 levy revenue to be $16.5 million, which will result in a reduction of its accumulated surplus.