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Controversial seed royalty program survey favours public funding

A 2019 online survey of 877 Prairie farmers showed support for producer funding of wheat research, but none for royalties on farm-saved seed
shutterstock survey
(Shutterstock)

With reduced government funding for grains research across the globe, an international treaty in 1991 saw countries approve plant breeders’ rights and royalty collections.

But the method of assuring plant breeders’ rights and royalty collection has varied.

Both Canada and the United States signed the treaty, with the U.S. having no plan, and Canada now considering one with Bill C-18.

Consultations with stakeholders were held last year and again this year for the controversial program.

A 2019 online survey of 877 Prairie farmers showed support for producer funding of wheat research, but none for royalties on farm-saved seed.

The survey found the most acceptable farmer funding was an increase of the producer check-off to $2 a tonne from $1.

“Eighty per cent of them didn’t want a refundable check-off,” said survey manager Vikoriya Gulushko of the University of Regina.

“They didn’t think anybody should get a free ride.”

Under voluntary check-offs producers can request refunds.

Least acceptable was an end product royalty on all wheat sales, although favourable farmers were three times as great if universities, not private companies, performed the research.

“It seems producers have developed trust in universities.

“Some producers may not want private plant breeder research because of the experience with canola seed breeding.

Gulushko said farmers should be educated more on the issue and favourable responses to royalties should increase.

An amazing 20 per cent of farmers didn’t know the $1 a tonne check-off fee is being collected.

Favouring research depended on the type of research with disease-resistant wheat getting the highest rating.

Chaplin farmer Ron Gleim said some farmers in his district question the value of plant breeding. 

“When they got 20 bushels an acre, land was $500 an acre. Now they get 60 bushels an acre and land is $2,000 an acre. Where is the benefit?”

University of Saskatchewan ag economics professor Richard Gray said not resolving the royalty issue risks less future research and lower returns to farmers.

Investment in agricultural research returns 37.5 per cent annually on a global basis.

Various systems for plant breeders rights work differently.

The European Union has a 50 per cent royalty on farm saved seed.

Australia and the United Kingdom have good returns with private plant breeding organizations.

France supports public research with private operators while Germany has farm organizations negotiate royalties and do collections.

German farmers were upset at farm saved seed royalties with only 30 per cent paying the fees while the U.K. collects royalties on 70 per cent of farm saved seed.

Unless Canada establishes a royalty fee system within a year Gray predicted nothing will change and Canada will lose out on development of wheat strains.

The Canadian government should “commit to continued public funding” of research.

Ron Walter can be reached at ronjoy@sasktel.net

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