The long-debated farm-saved seed royalties system is ready for wheat and barley growers.
Launched at the annual New Zealand Grain and Seed Trade Association (NZGSTA) industry grains and pulses forum in Ashburton, the project is “set to fly”, association general manager Thomas Chin told farmers.
“We are calling in all wheat and barley growers to the online declaration form now available for cereal growers to record their use of farm-saved seed.”
Chin said the system, administered by the seed industry office and found on the farm-saved seed system site www.farmsavedseed.co.nz, aims to collect royalties on plant variety rights (PVR) protected seeds that have been saved and replanted during the current production year.
The system is built on new provision in the Plant Variety Rights Act 2022 to ensure fair returns to plant breeders.
Varieties in application for and granted PVR will automatically enter the eligibility list.
Under a voluntary declaration, farmers who save and replant PVR-protected seed pay the rights holder an annual royalty based on usage per calendar year.
The royalties framework, collaboratively designed and supported by NZ’s seed sector partners, including arable farmer representatives, seed companies and plant breeders, will be overseen by an advisory committee made up of the partners.
The online declaration form aligns with the updated Plant Variety Rights Act.
“It incentivises plant breeders to develop the best varieties for local growers and the end user community such as millers, bakers and food manufacturers, enhancing their agronomic productivity and profitability.”
The digital platform will seek information on the quantity of PVR-protected seed saved and replanted on farms.
Growers can then make royalty payments based on their saved seed.
Similar farm-saved seed royalty collection systems have been successfully implemented in Australia, the United Kingdom, Ireland, Denmark, France and Argentina.
Federated Farmers grains chair Andrew Darling said farmers generally understand the concept and the need to pay royalties on specified seed varieties.
“We have acknowledged that royalties support breeding and varietal improvement.
“It’s going to be time now for growers to fully understand the process and the use of the digital platform.
“I don’t think there’s any farmers really averse to it, we all want research and development to continue for new varieties to come on board as we look for higher yielding, higher returning seed varieties in the future.
“This is change that just needs time now to cement in.”
While it is voluntary, Darling expressed confidence that farmers will record their use of farm-saved seed and pay their appropriate dues.
Given the complexities involved in the collection mechanism, it is not feasible at this stage to mandate compulsory recording for seed royalties payment.
Nor is it deemed necessary as there is industry-wide confidence that growers understand the project and will endeavour to follow the required processes for protected seed varieties.
PVR owner Glen Jarvis said the ability to collect royalties is an important part of ensuring incentives for research and development in plant breeding.
In return, NZ farmers receive improved yields and quality for new barley and wheat varieties.
Forum chair Ed Luisetti clarified that growers can save seed from wheat and barley crops they harvest for future planting without royalty payment, so long as they have not saved a variety on the eligible list and protected by law.
Growers have until the end of November to file their online declarations for the first year of the royalties project.
