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Organic Check-off
What is the Manitoba Organic Development Fund (MODF)?
The Manitoba Organic Development Fund (MODF) is a committee elected by organic grain producers in Manitoba and a subcommittee of Manitoba Organics. The MODF is leading Canada’s first organic grain check-off program, which has come into effect August 12th, 2021. This regulation, authorized under the Agriculture Producers’ Organization Funding Act, directs buyers of Manitoba-grown organic cereals, oilseeds and pulses to collect and remit 0.5% of gross sales on a quarterly basis to the Manitoba Organics.
The regulation can be found here: https://web2.gov.mb.ca/laws/regs/current/_pdf-regs.php?reg=62/2021
The role of the MODF is to manage check-off funds remitted by organic buyers. Proceeds of the check-off will be used to support organic research, extension, and market development initiatives, along with specific organic sector development activities. Funds from this regulation will also help support research and education to build resilience on organic farms on years like this with drought and climate variations.
Apply to MODF for Funding
MODF’s priorities are to support organic agricultural extension, research, and market development initiatives, along with specific organic sector development activities. MODF’s goals are to support research and education to build resilience on organic farms. Its specific interests currently relate to:
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Cover cropping
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Fertility
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Weed control
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Livestock integration
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Resilience
MODF currently has one intake for funding applications a year. The deadline for applications is January 31st, but applicants may submit at any time. We encourage applicants to indicate your interest in applying by November 1st as applicants will be invited to MODF’s annual November meeting to present proposals and speak with the committee about their projects. The committee will determine which projects will be funded at their annual February meeting.
Reach out to us or submit your completed application, including the proposed budget (use budget template), to modf@manitobaorganics.com.
Information for Buyers
While the Law applies to all designated organic grains grown in MB, it has no jurisdiction over buyers that do not have offices in the province. Therefore, Manitoba Organics is asking these buyers to voluntarily collect and remit the fees according to the regulatory schedule.
Purchasers who buy a regulated product directly from a producer must calculate and deduct 0.5 percent of gross sales at the time of purchase and remit these fees quarterly to Manitoba Organics according to the schedule in Table 1.Please refer to the table below for the quarterly collection and fee remittance schedule.
Time Period of Purchase
January 1 to March 31
April 1 to June 30
July 1 to September 30
October 1 to December 31
Deadline to Remit Collected Fees to MOA
April 30
July 31
October 31
January 31 of the following year
Buyers must ensure that check-off fees are collected only from producers with a valid organic certificate for that product. Buyers must not charge administrative fees to producers related to collecting and administering the check-off. When remitting fees, a purchaser must provide Manitoba Organics with the following information about each producer from whom the regulated product was purchased:
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The name, mailing address and e-mail address of the producer.
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The total amount of the fees being remitted on the producer’s behalf.
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The quantity, price and type of regulated product purchased from the producer.
A purchaser of a regulated product must keep and maintain complete and accurate books and records respecting the purchase of the product and provide copies of them when requested to do so by The Farm Products Marketing Council.
How this Regulation Came to be
Manitoba Organics was incorporated in 2009 by members of Manitoba’s organic community to become a voice for organics in Manitoba. We are a membership driven, non-profit organization representing organic associations, farmers, processors, buyers, aggregators, retailers and researchers in Manitoba.
The Manitoba Organics Board of Directors (BOD) is drawn from the organic value chain in Manitoba and includes livestock, grain, forage, dairy, poultry and horticulture farmers, organic certification agencies, the research community, buyers, restaurants, retailers, consumers and organic processors. Manitoba Organics does not currently receive check off fees and the organization does not have a membership fee. Membership is free to all certified organic growers that farm in the province.
For the past three years, Manitoba Organics has been receiving a small amount of core funding from the Prairie Organic Development Fund (PODF). This fund is supported by organic grain buyers across the Prairie region on a voluntary basis. Designating Manitoba Organics as the representative organization for certified organic grain production in Manitoba under the Agricultural Producers’ Organization Funding Act (APOFA) gives Manitoba Organics the financial capacity to support activities that will build the organic industry in Manitoba. While the funds are welcome, they have not been sufficient to enable the organization to support the following strategic priorities for MO:
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Increase knowledge sharing between organic producers, including peer-to-peer networks to
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share information and resources
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Partner with extension providers and universities to increase available resources and extension activities
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Enhance the capacity of researchers to respond to the research priorities of organic producers
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Advocate for improved organic crop insurance
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Respond to emerging regulatory issues that impact organics
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With this, there was a need to increase funds to support the organic industry including organic research, extension, and market development initiatives along with specific organic sector development activities. With a need for increased funds to support these goals and expand the organic industry, MO came up with the idea to start Canada’s first ever organic grain check-off fee.
In the summer of 2019, MO and Manitoba Agriculture ran two facilitated consultations. About 35 producers attended each consultation. The first consultation was broader in scope and was designed to probe producer opinions about the need/desire for a specialized organic check off, the crops that producers wanted to include, the amount of the check off, how check off fees would be collected, which organization should collect the fees and what the fees should be spent on. The second consultation focused almost completely on who should manage the check off and how administration should be structured. This consultation also probed the activities that should be funded in more detail.
In general, there was overwhelming support amongst producers for a specialized organic check off. Producers agreed on the need for a specific organic check off, on targeted funds for industry development – particularly for research and extension and that the Manitoba Organics was best positioned to manage the fund. Producers wanted to focus the fund on organic grains since there was no obvious market mechanism to collect fees for other crops and livestock. The vegetable and livestock sectors are also very small. The most contentious issue was marketing. Some producers believed that the sector should not spread funds too thin – i.e. away from research and training while others felt strongly that marketing should be included in the check off. When the facilitator probed into the reasons for the disagreement, most producers were interested in spending money on marketing initiatives that would directly help producers to market their grains – for example business-to-business meetings, trade missions, buyer and price lists etc. The split in opinion was related to broader marketing initiatives designed to build consumer support for organic food.
With the need for this regulation being addressed, the process of starting an organic grain check-off regulation in Manitoba began. After two years of consultations and planning, Canada’s very first organic grain check regulation was approved by the Manitoba Government and came into effect on August 12, 2021.
Producer Refunds
Manitoba Organics [referred to as Manitoba Organic Alliance (MOA)] is the designated association in Regulation 62/2021 registered August 12, 2021 https://web2.gov.mb.ca/laws/regs/current/_pdf-regs.php?reg=62/2021. The regulation, registered under the Agricultural Producers Association Funding Act, enables MO to collect a 0.5% check-off on designated organic cereals, oilseeds and pulses grown in Manitoba. The regulation requires buyers of these grains with offices in Manitoba to collect check-off fees. Buyers that do not have offices in Manitoba are requested to voluntarily collect and remit the check-off. The regulation applies to all designated organic products grown in Manitoba. If a buyer does not collect the check-off, producers must remit the check-off themselves. The check‐off is made at source by your buyer and the deduction rate is 0.5% of gross organic grain sales.
Producers requesting a refund from the Manitoba Organic Development Fund (MODF) must complete the form and mail or email the form and any relevant attachments to MODF. Check-off fees cannot be refunded until MODF receives the funds, along with details about the seller from your buyer.
The refund request must be completed using the name recorded by the buyer. A separate refund request must be completed for each producer or business name used. If the check-off was deducted under an alternate address, please ensure all possible addresses under which check-off could be deducted are included on your form.
According to Regulation [section 7(2)]: To apply for a refund of fees collected during a period described in Column 1 of the following table, a producer must submit an application for those fees on or before the date set out in Column 2. If the application meets the requirements (subsection (3) of the regulation), the association must provide the producer with the refund on or before the date set out opposite in Column 3:
COLUMN 1
Refund Period
January 1 – June 30
July 1 – December 31
COLUMN 2
Application Date
August 1
February 1 of the following year
COLUMN 3
Refund Date
September 30
March 31 of the following year
Frequently Asked Questions (FAQs)
Why is Manitoba one of the only provinces to collect a specific check-off on organic grains?
Quebec also has a check-off on organic grains. Other provinces have tried to get their governments to implement an organic check-off, but they have not yet been successful. Saskatchewan has implemented a voluntary organic check-off, which means that buyers must voluntarily agree to collect the fully refundable check-off.
How do I benefit from an organic grain check-off?
Mainstream commodity organizations undertake policy, advocacy, research, and market development work on behalf of the producers who pay their check-off fees. This results in new and improved varieties, better access to markets and a higher profile within Government, which in turn means more commodity-specific programs such as risk management and other funding programs. In organic, associations across the country are strapped for money as they have limited access to private money. They tend to rely on Government grants that typically require 50% private matches. Organic associations are not able to fully capitalize on these funds as they do not usually have the private match. Commodity associations do. While mainstream commodity groups do some great things that benefit you, they typically do not have specific programs designed to address the needs of organic producers. For instance, they do not do research on crop varieties that thrive under organic management or intercropping, they do not advocate for organic insurance or funding programs, they do not undertake extension programs for organic producers, nor do they undertake specific market development activities for organic producers.
When did the check-off come into force?
The organic check-off became law on August 12, 2021. Regulation 62/2021, the Manitoba Organic Alliance Designation Regulation falls under the Agricultural Producers Organization Funding Act. Designated organic grains sold after that date are subject to the check-off.
Are crops destined for all end uses such as feed, food, and seed subject to the check-off?
Seeds grown for green manure or animal forage are not subject to the check-off unless sold as seed.
How is the check-off fee calculated?
The check-off is 0.5% of gross sales. For example, if you sell a super B load of spring wheat (~1,654 bu) @ $14/bu, your sale price would be $23,156 (assuming no dockage) and your checkoff would be $116. For a super B of flax (~1,772 bu) that you sell for $34/bu for $60,234, the check-off would be $301. If you opt to pay the conventional and organic check-offs for these grains (i.e. you do not request a refund from the associations that collect the check-offs), your total check-off for these quantities of grain would be $161 for wheat and $602 for flax.
How does the check-off amount compare to other check-offs?
Conventional barley grown in MB: $1.06/MT Conventional spring wheat grown in MB: $1.00/MT Conventional winter wheat grown in MB: $0.98/MT Conventional oats grown in MB: $0.50/MT Conventional oats grown in MB: $1.00/MT Conventional flax grown in MB: 0.5% of gross sales Conventional sunflowers grown in MB: 0.5% of gross sales The organic voluntary check-off in Saskatchewan and the mandatory check-off in Quebec is 0.5%/MT
Can I get a refund on my organic check-off?
Yes, you can ask for all or part of your 0.5% checkoff back. To get your fee, or part of the fee back, please complete the form on the Manitoba Organics website. You’ll find it under the MODF tab in our website menu.
Why do I pay two check-off fees for some crops?
There are several reasons for this. First, when MOA first discussed the regulation with Government officials, the association was not given a choice of an organic-priority check-off (i.e. a single check-off for organic growers). Second, MOA did not want to deprive existing commodity associations of this revenue stream. These associations use check-off money for research and other projects that benefit all growers, including organic producers. Finally, organic growers have the final say about which associations they want to support with their check-off dollars. They can choose to get a refund from any or all associations or they can choose to remit only part of their check-off dollars to MODF.
Who manages check-off funds?
The Manitoba Organic Development Fund is a subcommittee of organic grain growers elected annually at the Manitoba Organics AGM. Only organic grain growers have a vote. Funds will be spent on projects that advance the organic sector in Manitoba, including on research, extension, market development and strategic projects.