Federal Tax Credit for Farmers on Check-off Investments

The federal government annually provides a Scientific Research and Experimental Development (SR&ED) tax credit to producers offering them money back on their check-off investments.

The tax credit percentage for producers who contributed to the Wheat and Barley Check-off (administered by the Western Grains Research Foundation) in 2011 are 84% for wheat and 83% for barley.

It should be noted that the check-off on barley in Alberta is collected by the Alberta Barley Commission and will be subject to a different tax credit rate.

The percentages above are calculated by looking at the amount of the check-off dollars spent directly on research, this is then determined to be the eligible portion. Each check-off organization may vary, as they will have their own eligible percentage.

The tax credit is earned at a rate of 20% for individuals and 35% for corporate producers that are Canadian controlled private corporations (CCPC).Producers who choose to opt-out of the program are not eligible for the tax credit.

For more information on claiming your SR&ED tax credit, please consult your accountant or visit the Canada Revenue Agency website.

For further information, contact:

Mike Espeseth
Communications Manager
Western Grains Research Foundation
(306) 975-0365


WGRF Backgrounder

Western Grains Research Foundation (WGRF) is a farmer funded and directed non-profit organization investing primarily in wheat and barley variety development to benefit western Canadian producers. Through investments of over $57 million WGRF has assisted in the development and release of more than 100 new wheat and barley varieties over the past decade and a half, many of which are today seeded to large portions of the cropland in Western Canada. WGRF also invests in research on other western Canadian crops through the Endowment fund. Since 1981 the Endowment Fund has supported a wealth of innovation across Western Canada providing over $26 million in funding for over 230 research projects.