Letter to Alberta Canola Growers

To my fellow Alberta Canola growers:

As we look toward the upcoming Alberta Canola Annual General Meeting this January, I want to personally address an important decision we’re asking you to consider. We are asking you, the growers, to support a modest but necessary increase in the refundable canola service charge from $1.00/tonne to $1.75/tonne.

We don’t make this ask lightly; the decision was made after very thorough analysis, including consultation with financial experts, forecasting five-year financial and production outlooks, and projecting various operating scenarios. Your Alberta Canola board — myself included — believes this increase is essential for Alberta Canola to continue our efforts to benefit all Albertan canola farmers.

Alberta Canola has not raised its service charge since 2003. Over the past 20 years, every cost in our industry has surged, while public funds for research have plummeted and the pressure on the industry — from regulatory burden to consumer demands to sustainability expectations — has skyrocketed.
Simultaneously, Alberta’s canola production has declined by nearly 25% from a high of 7 million tonnes in 2017. These factors have resulted in Alberta Canola operating in deficit for five of the last six years. As fellow farmers, we understand the financial pressures you face. Our ask is not just about keeping Alberta Canola running—it’s about ensuring the continued growth and success of Alberta’s canola industry.

Increasing the service charge would allow Alberta Canola to rebalance our budget and restore financial reserves that would give the organization long-term sustainability. It would also enable us to strategically enhance initiatives that support grower success. Farmers need sharp financial pencils to be successful on their own farms, and they should expect the same from their commissions.

Let me be very clear: long before even considering asking for additional funds, we at Alberta Canola conducted a comprehensive review of our operations, tightening our operating budget in every way possible. Then we looked at our mandate and the services our growers expect from us to determine if we could reduce deliverables while still maintaining the programs and efforts you expect from Alberta Canola.

The reality is that if Alberta Canola were to reduce its budget by 20%, it would severely compromise our ability to deliver what you’ve told us you need. Yet even a cut of that size — which would demand eliminating one or more of our key operational pillars — would not put the organization back onto firm financial footing.

This ask won’t come as a surprise for many. Over the last couple years, we’ve reached out regularly to our growers to talk about our efforts, celebrate our wins, and collect perspectives on a path forward. We have spoken openly about our financial challenges at all our regional Grower Engagement Meetings (GEMs) throughout 2023, at our 2024 AGM, and in various articles in our newsletters and websites. I’m proud and pleased to say the feedback we’ve received to date on the concept of a service charge increase has been resoundingly positive.

Repeatedly, we’ve heard “Keep doing what you’re doing. Farmers need someone working on these tough issues on our behalf,” and “We support you. What do you need to regain financial stability?”

In early 2024, we contracted a certified management consultant to conduct an independent review of our financial position and options moving forward. They confirmed that Alberta Canola will not be operational going forward without a service charge increase. They presented financial projections for service charge increase options that would take the charge up to a total of either $1.50 or $2.00/tonne. At a $0.50/tonne increase (to a total charge of $1.50/ tonne), the financial projections were poor. Modelling cashflow out five years shows we would not be able to balance the budget or build the contingency fund we need to help weather near-term uncertainty.

As a non-profit, it is important that grower dollars work hard on today’s challenges. A doubling of the current service charge to $2.00/tonne would build up our resiliency more quickly, but we are uncomfortable asking for more than we feel we need. After careful analysis, the Alberta Canola Board was unanimous in supporting a $0.75/tonne increase, which would bring the total service charge to $1.75/tonne. We believe this ‘middle route’ is a sustainable and fiscally responsible decision that continues to allow us to meet grower needs.

While we appreciate the support of those who have provided feedback so far, our goal is to hear from as many canola growers from across Alberta as possible. I encourage you to join us at one of our upcoming Grower Engagement Meetings to learn more. And I encourage all growers to attend and vote at our Annual General Meeting on January 22, 2025, either in person in Red Deer or by joining online. The official resolution to be presented at the AGM will be published on our website in early January. All eligible producers in attendance at the AGM, both in person and online, will have an opportunity to vote on this resolution.

I am the chair of your Alberta Canola board and I am farmer. As a canola grower, I see the proposed increase as a good investment to help ensure the long-term success of all canola farmers in Alberta. I hope you agree.

With appreciation,
Roger Chevraux,
Alberta Canola Chair & Region 11 Director

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