OAT INDUSTRY TO BENEFIT FROM NEW COMMISSION

Oat producers can look forward to new technologies, market opportunities and products from the newly established, producer-directed Saskatchewan Oat Development Commission.

"We have established the Commission at the industry's request, in an effort to increase the profitability of producers through the development of new market opportunities, improved production practices, and improved varieties," Agriculture and Food Minister Mark Wartman said.

The Commission will be financed through a mandatory refundable check-off following the success of models established for alfalfa seed, flax, canola and mustard. The check-off is set at $0.50 per tonne of oats sold at the first point of sale. A check-off is a mandatory deduction from the price received at the first point of sale, but producers may request a refund twice per year.

"We are pleased that the Government of Saskatchewan has approved our request for a producer-operated development commission," Saskatchewan Oat Development Commission Interim Chair Dwayne Anderson said. "I would like to thank the oat producers and buyers in advance for their support in the establishment of the Commission. This new Development Commission will enable Saskatchewan oat producers to invest in their own solutions to low commodity prices, and therefore, in the future of their own farms. With stable funding in place, we hope to advocate for a strong and profitable future for the industry."

The Saskatchewan oat industry consists of 14,000 producers seeding an estimated two million acres annually. The check-off will be applied to all Saskatchewan-grown oats, excluding oats grown and consumed on a producer's farm, and is expected to generate estimated revenue of $350,000 per year for research, market development and extension.

The Commission will begin collecting the check-off on August 1st, 2006.

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For More Information, Contact:

Scott Brown Agriculture and Food Regina Phone: (306) 787-4031