Producers open to idea of seed royalties

Jan 14, 2019

More information is necessary before anyone can make a proper decision

By Diego Flammini
Staff Writer
Farms.com

Some Western Canadian grain farmers aren’t opposed to directing some money towards variety development.

But all the cards need to be on the table before growers can make informed decisions, said Fred Greig, chair of the Manitoba Wheat and Barley Growers Association.

“I think the knee-jerk reaction is usually we can’t afford to pay anything more, especially when margins are tight,” he told Farms.com. “But I think once everybody is made aware of the situation and receives the information on what our competing countries are spending, then some good conversations can happen.”

Agriculture and Agri-Food Canada is holding consultations on potential changes to the way research and variety development is funded.

One option, end-point royalties, would see farmers charged a certain non-refundable amount on harvested grain at the elevator.

The other, called trailing contracts, would mean farmers pay a royalty when the buy seed and pay a royalty on any saved seed used for future planting.

Either scenario could benefit farmers if the numbers add up, Greig said.

“Farmers are no different than other business owners,” he said. “If you give us all the information, we’ll make the right decision. The majority of producers are supportive we need to do more, but nobody wants to write a blank check. Let’s find the number (of dollars) and then we’ll figure it out.”

Seed companies support the royalty programs.

Alliance Seed, CANTERRA SEEDS, FP Genetics and SeCan are united in their endorsement of the proposed investment streams.

Putting money back into variety development will help farmers in the long run, said Todd Hyra, business manager, Western Canada with SeCan and president of the Canadian Seed Trade Association.

“We need to act quickly because anything we do or don’t do now will have repercussions down the road when products come or don’t come,” he told Farms.com. “The studies we’ve done show that for every dollar invested there’s a return of between seven and $11 to the producer in research and development.”

Video: Evolution of Beef Cattle Farming

The Clear Conversations podcast took to the road for a special episode recorded in Nashville during CattleCon, bringing listeners straight into the heart of the cattle industry. Host Tracy Sellers welcomed rancher Steve Wooten of Beatty Canyon Ranch in Colorado for a wide-ranging discussion that blended family history and sustainability, particularly as it relates to the future of beef production.

Sustainability emerged as a central theme of the conversation, a word that Wooten acknowledges can mean very different things depending on who you ask. For him, sustainability starts with the soil. Healthy soil produces healthy grass, which supports efficient cattle capable of producing year after year with minimal external inputs. It’s an approach that equally considers vegetation, animal efficiency, and long-term profitability.

That philosophy aligned naturally with Wooten’s involvement in the U.S. Roundtable for Sustainable Beef, where he served as a representative for the Colorado Cattlemen’s Association. The roundtable brings together the entire beef supply chain—from producers to retailers—along with universities, NGOs, and allied industries. Its goal is not regulation, Wooten emphasized, but collaboration, shared learning, and continuous improvement.