Notice to Members: Proposed CSGA Inflationary Service Fee Adjustment – Vote at 2025 AGM
To maintain high-quality, member-focused services and ensure long-term financial health, CSGA is proposing a 4.63% inflationary adjustment to all service fees, effective February 1, 2026. Members will vote on this proposal at the 2025 AGM, July 4–5 in Victoria, BC.
Why This Adjustment?
Over the past three years, the cost of delivering certification and member services has steadily increased. CSGA has held fees flat since 2022 and reduced internal expenses wherever possible, but further cuts risk compromising core services. This adjustment allows us to:
- Sustain strong, reliable services
- Manage rising costs due to inflation
- Support ongoing compliance and certification standards
- Ensure financial stability during sector-wide transformation
The proposed 4.63% adjustment is based on the average Canadian Consumer Price Index from 2022 to 2024—6.7% (2022), 4.3% (2023), and 2.9% (2024)—and follows a method used by federal regulators. It offers a balanced, data-driven approach without annual fluctuations.
Financial Impact
If approved, the adjustment is expected to generate $125,000 annually, helping maintain service levels and support CSGA’s mandate. Even with this change, CSGA expects to run deficit budgets in the short term and will rely on reserves to manage through this period.
Why Now, If CSGA Had Surpluses?
Recent surpluses were driven by temporary, external sources like government funding, investment gains, and consulting revenue—not ongoing operations. Meanwhile, core certification revenues continue to decline due to reduced acreage and membership.
This proposal is about long-term sustainability, not short-term surplus. It ensures we can continue delivering high-quality services despite rising costs and structural revenue challenges.
Over the past four years, CSGA has also rebuilt reserves that were previously drawn down to support national seed sector initiatives. Now back in line with policy, these reserves will help manage short-term deficits as we adjust to inflationary pressures.
Transparency & Member Accountability
CSGA is one of the few associations where members vote directly on fee changes. To ensure full transparency, we also publish audited financial statements annually.
Key FAQs
- When was the last fee adjustment?
The last fee review took place in 2021, with changes effective in 2022. - What cost-saving steps has CSGA taken?
Between 2021 and 2023, CSGA reduced annual operating expenses by over $660K, or nearly 20%. These savings were achieved without compromising service quality — during this time, we expanded member services, launched strategic initiatives (e.g., Choose Certified Seed, Membership Review), modernized digital certification, and led national dialogue on Seed Regulatory Modernization (SRM). We’ve also cut rent, equipment, and IT costs, eliminated governance expenses, and adopted new budgeting frameworks. While some cost increases returned in fiscal year 2024–2025 due to inflation, overall expenditures remain below 2021 levels. This track record demonstrates CSGA’s strong financial discipline and commitment to fiduciary responsibility.
- Why not do a full fee review?
A full review is time- and resource-intensive. An inflationary adjustment is the most practical way to address immediate cost pressures without disrupting strategic priorities. - Didn’t CSGA post surpluses recently?
Yes—but those were due to one-time sources like government funding and investments. Core revenues continue to decline. This proposal ensures future sustainability. - Why use CPI from 2022–2024?
That was the most current data available at the time of review. A rolling average may be used for future adjustments if needed.
Have Your Say
Your vote matters. We encourage all members to attend the AGM, ask questions, and participate in this important decision.
Questions? Please email us, we’re happy to help.
