Comments from seed royalty meeting

[farmaholic]

The largest beneficiaries will be the SeedCos....which will likely be the AgriChemCos.

Hybrid wheat seeds will have limited farm saved seed shelf life....enter seed growers. Bigger trickle down here for them than standard bred wheat, more certified hybrid wheat will be bought if the wheat loses its vigor in subsequent years of continual use. Or does closed/self pollinating wheat not lose it's vigor like open pollinated canola?

A message to seed breeders....go to Russia or better yet, Africa!!! That's where all the future Ag growth opportunity is supposedly going to be. Oh!....you don't like the political environment? Gold ****en bricks are being laid for them to walk on here!

[farmaholic]

"As for overall costs of the seed royalty numbers were suggested based on acres of wheat, but no final cost estimates were presented. Nor were current fund spent on certified seed presented."

Interesting.

Take the yearly average wheat acres and multiply them by what ever Ransom the decide to impose.

How much do they think they need? What do they actually need? What will actually be levied?

What are we competing against? Russian wheat? General purpose American wheat? Low cost low quality wheat? High quality wheat prices get dragged down closer to low quality prices , I doubt it happens the other way.

If canola seed costs are 13-15% of gross per acre returns....15% of wheat at 50 bpa @ $6.50/bu = $48.75/ac seed costs. No way.... How much will they want? Who will be monitoring the sodomy?

[ajl]

There have been a lot of new seed varieties released in the past couple of years. Many of them cousins if not brother and sister and not significantly different. This is without end point royalties. Markets are saturated with surplus production. How much more investment can we stand? The seed industry is already over investing so why even more investment? I am not opposed to investment, just the fact that government is being used as a tool to force me to guarantee a return on all this investment. What we need is more markets and access to markets than seed investment.

[bucket]

Value has to be there for all players in this industry....growing more bushels without adequate infrastructure will result in a 2013 and 1997 incidents....and more recently what's going on in the oil industry...

There is no royalty on grain that can't be sold. ...is there?


I think seed growers have had their say in the process...sorry westernvicki....but it irritated me that seed growers had been speckled throughout this meeting....

I realize they are farmers but they are promoting a royalty system that will help them...not necessarily good for farmers...

[westernvicki]

The theme was value for investment.

2016 over 55.9% of farmers are 55 & over (1)
In 2016 farmers under 35 were only 9.7% (2) of the farm base, and as a prorated average in the room, the youngest voices were most concerned about the impact of increasing costs would have on farm profitability in the future.

Association representatives noted the concern about check off weariness, if a seed tax comes, in, as well as the carbon tax, will farmers want their check off money back? (3)


As for overall costs of the seed royalty numbers were suggested based on acres of wheat, but no final cost estimates were presented. Nor were current fund spent on certified seed presented.

2 models were promoted: Our table preferred EPR, End Point Royalty, over the concept of a production contract used to bill for seed use. Some preferred zero change.


CDC/ AAFC represented the public sector, & LIMAGRAIN a farmer owned global cooperative corporation spoke, all noted the need for funds to maintain rapidly changing innovation in plant breeding as a potential impact on future Canadian competitiveness. The Australian and French EPR were noted as examples.

The process which started in 2016, is for the next few months in the public consultation phase, a decision is expected to be implemented by 2020.

While most agreed we need seed innovation, the question of cost, competitiveness, efficiency and transparency & accountability of the process were words used a lot.







(1) Census
(2) Census
(3) 2016 33 million in check off dollars were collected by the commodity groups in Saskatchewan , not including WGRF funds.

[farmaholic]

Accidents happen!

[bucket]

And where does this end.....next over to the livestock industry to charge a royalty on the bulls or cows I use...right....

[Oliver88]

So there not releasing the "hostages"(new and improved varieties) until their "yearly ransom" can be collected?

Interesting that seed companies expect gullible farmers to line up to pay a seed tax.
Imagine volunteering to pay a tax “yearly ransom” without proof there will be an end benefit.

The varieties we have now already seem to congest our questionable railway and shipping service.

Craziness.

[bucket]

....at my table discussion I asked why Syngenta put their hybrid wheat on hold.....no answer ....but they don't think its for royalty reason......OK....I am just stupid then.

[TASFarms]

There is always new varieties coming out.