E-Delivery

ROYALTIES SEED ROYALTIES SUPPORT BREEDING PROGRAMS Seed royal es support the development of new varie es, but most producers don't know how royalty programs work. "This is how the breeding ins tu ons are going to keep going," said Ward Oatway, President of Alberta Seed Growers. "I don't want producers to think this is just another way of taking money out of their pocket. Growers are paying this much for the seed, yet a percentage of it is going back to the breeding ins tu on to develop new varie es." Under the current seed royalty system, Alberta producers don't see a breakdown of the fee. That would change if an End Point Royalty (EPR) system is adopted. "I know that there has been talk for years of moving to a value capture system," Oatway said. "The collec on points (elevators) aren't really keen on the administra on factor and a lot of people don't necessarily want to see it taken off at that end either. It would be like a check-off." He explained that under an EPR system, seed growers wouldn't charge as much for seed because they wouldn't have to pay the royalty on it up front. It would also benefit the breeding ins tu on because right now, they only collect royal es on cer fied seed. Oatway said that the current seed royalty system is difficult to explain because there are many different ways in which it can be handled. "Generally, it is a contractual agreement between the distributor/ retailer and the breeding ins tu on," he said. "Typically, the royalty is a percentage of what the cer fied seed price would be. As the variety matures and demand goes down, the retail price goes down. O en mes, the royalty will go down as well." The royal es are collected by the seed grower on behalf of the seed company or owner of the variety, which then pays a percentage back to the ins tu on. Oatway said that a less common op on is for the breeding ins tu on to charge a set or lump sum royalty fee up front, and there are also some other alterna ve prac ces. He added that Canada's adop on of revised Plant Breeders' Rights legisla on (UPOV'91) provided more defined rules regarding cer fied seed and common seed. The Alberta Seed Growers is one of seven branches of the Canadian Seed Growers' Associa on (CSGA). The CSGA is the sole seed pedigree agency for most agricultural crops in Canada. Canada's seed system ensures mechanical purity, while providing an audit trail that guarantees varietal iden ty and purity. For more informa on, visit www.seedalberta.ca. 1 6

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