The Western Grains Research Foundation pledges to make good use of the approximately $4.4 million it will be receiving from Canadian National and Canadian Pacific Railway. WGRF received official notification on January 3 that it would be receiving the money due to the two railway companies exceeding their grain revenue caps for the 2005-06 crop year.

"For the past two years, we've received funding through this provision of the Canada Transportation Act," notes Lanette Kuchenski, WGRF Executive Director. "However, this is the first time both railway companies have exceeded their revenue cap in the same year and the amount this year is much larger."

In 2006, WGRF received $124,650 from CN, while in 2005 the payment was $338,008 from CPR. For 2007, the Canadian Transportation Agency has determined that CN exceeded its revenue cap by $2.7 million and CPR was over by nearly $1.5 million. In addition, the regulations apply a five per cent penalty bringing the total to approximately $4.4 million.

The WGRF administers an Endowment Fund that it received from a discontinued federal farm program, which was the forerunner of crop insurance. Since 1983, almost $19 million in interest earned from the Endowment Fund has been used to fund more than 200 crop-related projects to benefit all producers in Western Canada.

WGRF is also known for the check-off it collects on wheat and barley, which is deducted from Canadian Wheat Board final payments. This funding is used to fund wheat and barley breeding at locations across Western Canada.

The $4.4 million from CN and CPR will be added to the approximately $9.5 million currently in the Endowment Fund. The additional interest earned will mean the ability to fund more research projects in the years ahead.

Producers representing a broad cross-section of farm organizations serve on the 18-member board of WGRF. The chair is Dr. Keith Degenhardt, a producer from Hughenden, Alta.

"The money coming to us from the railway companies belongs to farmers," Degenhardt notes. "It would be an administrative nightmare to try and return the money to individual producers on an equitable basis. Producers can be assured that we will invest the interest from these funds in projects aimed at making a tangible difference to farm profitability."

Past projects have supported a wealth of crop knowledge, technology and innovation to benefit the western grain industry.