Wheat and barley commissions voice concerns over new seed industry pilot program
Wheat and barley commissions from the prairie provinces have voiced their concerns over a seed variety use agreement (SVUA) that is being launched by the Canadian Seed Trade Association and the Canadian Plant Technology Agency.
The two organizations made the announcement on Feb. 25.
The pilot program, similar to the federal government’s consultation on a royalty structure, aims to impose a trailing royalty collection system for farm-saved seed on three specific crop varieties.
According to a press release by five wheat and barley commissions (Alberta Wheat Commission, Alberta Barley, Saskatchewan Wheat Development Commission, Saskatchewan Barley Development Commission, and the Manitoba Wheat and Barley Growers Association) on Feb. 26, the federal government’s consultation process “which also includes the End Point Royalty (EPR) model in addition to the trailing royalty model, was initiated by the federal government to inform the value chain and attempt to work toward the best model for all involved including farmers. Further, the SVUAs are being implemented via contract law and not a regulatory change, resulting in significant concerns from the commissions about the future of the consultation process.”
The SVUA pilot program announced by the seed industry involves two varieties of wheat, CS Daybreak and CS Acccelerate, and a glyphosatetolerant soybean variety that has yet to be registered.
Tom Steve, general manager for the Alberta Wheat Commission said that farmers have always had to ability to re-use seed they had already purchased and the AWC does not want to see farmers having to pay multiple times for the same product.
“Now, when farmers buy wheat and barley seed they have the ability to reuse but not resell it and that has been a privilege for as long as there has been farming in Canada,” said Steve. “The proposal would place an additional royalty on re-using the seed.”
“We, as commissions have been major funders of the breeding programs at Swift Current, Lethbridge, the University of Alberta and the University of Saskatchewan. Already farmers’ money is going into the breeding programs. We want to make sure farmers aren’t paying two or three times,” he added.
“Wheat and barley commissions are major funders of variety development. Over five years, $50 million has been invested and that needs to be made aware, that farmers have already paid into these varieties.”
The pilot program is separate from announced by the federal government a number of years ago, a program that has seemingly fallen by the wayside.
“We don’t know if feds will continue with their consultation and it was delayed because of the federal election. Now the seed industry wants to roll out their own,” said Steve.
“There was supposed to be a government online survey, but that got delayed too. And, we asked them more than two years ago for the economic analysis and that still hasn’t been seen. It’s a very controversial issue and it seems like they want to wash their hands of it.”
Steve noted that the federal government’s economic analysis may finally be made available and is on the agenda at the Grains Roundtable taking place in Vancouver this week.
“Does the economic analysis mean anything if they (federal government) aren’t going to do anything?” he added.
Alberta Barley Commission said it is vital that the federal government complete their consultations.
“It is critical that the government complete their consultations with grain producers and put a transparent and accountable process in place to demonstrate that the extra money producers are paying is advancing varietal development,” said Dave Bishop, Alberta Barley chair.
Jock Airth, from Airth Farms at Brooks. Airth Farms has been growing pedigreed seed since 1971 and said the best way for the SVUA to work would be if it is done as a check-off at end use.
“This has been a hot potato for the last 10 years and the feds have been kicking it around for 10 years. It affects us as seed growers,” he said. “End point use is where it has to be done and done as a check-off. It will put more money in the hands of the seed growers. Right now, we end up paying for the whole thing. We make out some pretty big cheques every June.”
The Saskatchewan Barley Commission said in the press release that there needs to be proven value to the farmers before the pilot program gets expanded to other varieties.
“This program has the potential to create frustration for farmers,” said Jason Skotheim, SaskBarley chair. “There needs to be a clear demonstration of value to producers from this pilot program. Until that time, the pilot program should not expand to other crops such as barley, that already struggle with unique issues on variety uptake.”
The Saskatchewan Wheat Development Commission also wants to ensure that farmers and current programs are protected.
“Sask Wheat wants to ensure producers’ rights, such as the right to use farm-saved seed, are being protected in any pilot contracts and that producers clearly understand the impact of the contracts on their farms,” said Brett Halstead, Sask Wheat Chair. “We are concerned that the proposed trailing royalties could inhibit the adoption of midge tolerant varieties, should they be included as part of the pilot, which would have negative implications for the Midge Tolerant Wheat program.”
Steve noted that it is unlikely that seed being used for this year will be affected.
“Therein lies the confusion. Some farmers may think they’ll be paying the additional royalty. No, they won’t, but as more and more varieties are added, they will. The wheat varieties are completely new and developed by private companies and there has been no producer or government investment, they have been developed without subsidy,” said Steve.
“When it comes to public varieties, it’s a different story and we know they’ll be bringing more public varieties into the program. Right now, have the option of avoiding those varieties, but if the project becomes the norm, it will be hard to avoid.”