Value Creation

Background

Agriculture and Agri-Food Canada (AAFC) and the Canadian Food Inspection Agency (CFIA) g conducted engagement sessions in 2018 and 2019 around “Value Creation” to discuss changes to the way new varieties of wheat, barley and other Canadian crops are developed in Canada. Below are various presentations that have been made at various consultations.
  • View the ‘Value Creation Stakeholder Engagement Meeting’ presentation made in Winnipeg on November 16, 2018 here.
  • View the ‘Transforming Canada’s Cereals Sector Through Value Creation’ presentation made at CropSphere 2019 here.
  • View the ‘Transforming Canada’s Cereals Sector Through Value Creation’ presentation made at Ag Days 2019 here.

At the Grains Roundtable meeting in March 2020, a decision was made by AAFC and CFIA to end the formal consultation surrounding value creation.

Value Creation

Proposed Changes

Under this consultation, AAFC and CFIA have proposed two models for evaluation.

End Point Royalties

  • 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

Royalty Collection Enabled Via Contracts

  • 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

Additional Background/Information

In 2012, producers commissioned a study with Garven and Associates on producer involvement in variety finishing and funding mechanisms. View the report: Garven Report

In fall of 2014, a producer working group facilitated by Western Grains Research Foundation was formed to investigate options for producer involvement in wheat and barley variety development.

The following reports were generated.

In fall of 2018, Canadian Seed Trade Association voices support of a trailing royalty system enabled by “Seed Variety Use Agreements”. In February 2020, the Canadian Plant Technology Agency (CPTA) launched the SVUA pilot project to evaluate how the seed variety use agreement (SVUA) could potentially work. More information on the SVUA pilot project and the varieties included in the program can be found at seedvaluecreation.ca.