Agriculture and Agri-Food Canada (AAFC) and the Canadian Food Inspection Agency (CFIA) are currently conducting engagement sessions around “Value Creation” to discuss changes to the way new varieties of wheat, barley and other Canadian crops are developed in Canada. These consultations are currently underway and they are asking for producer input.
Variety development (breeding) programs across Canada are supported mostly (72%) by government, or public, funding. The balance of the funding for these programs comes from producer check-off via farm commissions. There is also a small amount that comes from the private sector, however this remains a small portion of overall investment. Under the current system, approximately $56 million is invested annually in wheat and barley breeding programs
Under this consultation, AAFC and CFIA have proposed two models for evaluation.
End Point Royalties
Royalty Collection Enabled Via Contracts
• A Plant Breeders’ Rights Act
(PBRA) underpinned national non-refundable royalty payable on all harvested material (i.e., grain)
• Leverages the exiting provincial check-offs system to collect the non-refundable royalty
• Royalties to be distributed to breeders based on their respective market share
• Need for a mechanism to provide rebates/exemptions, ensuring royalties not collected on production from certified seed
• A Plant Breeders’ Rights Act (PBRA) underpinned mechanism allowing for contracts where producers agree to farm saved seed conditions
• Purchasers of certified seed for eligible varieties agree to extended contract on farm saved seed use (e.g., agreeing to a “trailing” royalty on farm saved seed)
• Participating producers report on their annual use of farm-saved as part of their contractual obligation
• Will require at least some degree of centralization in royalty collection and distribution
Both these proposed models have the potential to have a large financial impact on producers. Given the lack of detail presented by AAFC and CFIA it is impossible to quantify the impact to producers at this point. It is important to note that these models are not the only options for future funding of variety development.
What can you do as a producer?
- Provide feedback to the government directly. Comments can be submitted to:
- Learn more about the potential changes. Continue to check back to our website for more information as it becomes available. Some information is available at: https://seedinnovation.ca/wp-content/uploads/2018/11/Government-Value-Creation-Consultation-Deck-1-.pdf
- Provide feedback to any farm commissions you are a member of (contact information listed below).
- Raise awareness about these proposed changes and their potential impact on producers amongst your family, friends and neighbours about this