Cereal seed royalty system enters second year

Arable industry peak bodies are united in support of the voluntary royalty declaration and collection system for farm-saved seed (FSS).

Cereal breeder Sarah Whiteman.

New Zealand’s grain and seed industry, in collaboration with Federated Farmers Arable and United Wheat Growers, has introduced the royalty declaration and collection system for farm-saved seed.

The new Plant Variety Rights Act 2022 allows farmers to save seed of protected wheat and barley varieties yet provides a framework for fair recognition of plant breeder’s rights via the expectation that farmers declare and pay to the rights holder (breeder) for any seed saved of protected varieties.

First rolled out in 2024 and now entering its second year, the online payment portal is hosted by the NZ Plant Breeders Research Association (NZPBRA). Royalty collection is overseen by a governance group with balanced representation from farmers and breeding companies.

NZPBRA and the governance group ensure all declarations and payments received are paid to the respective breeders.

The scheme enables farmers who save and replant legally protected cereal varieties to declare their usage and pay a breeder royalty.

Sarah Clark, chief executive of NZPBRA, says it applies to all farmer-saved seed barley, and to farmer-saved wheat if the resultant wheat crop does not pass through an end-point royalty collection agent.

The initiative is built on shared understanding between breeders and growers that royalties are essential to fund ongoing research and development and the creation of future innovations — all of which help to maintain a viable industry long term through steady productivity gains.

Developing a new plant variety typically takes around 10 years and can cost over $1 million. New varieties bring increased yields, improved pest and disease resistance, and better crop quality.

Clark says by supporting breeders through payment of royalties, farmers help ensure continued access to improved varieties tailored to NZ growing conditions.

“Without payment of royalties on farm-saved seed, there’s a risk that the major breeding companies won’t bother continuing to breed cereal varieties suitable for NZ because of the inability to recover costs.

“Grains are a critical crop in the rotation for arable farmers and if breeders pull back from NZ, we’ll be stuck with untested varieties or old varieties that will eventually suffer from disease pressure, impacting input costs and yields for farmers – that would be a lose-lose scenario for everyone that we want to avoid.”

This approach with farmer-saved seed royalty collection brings NZ into line with international practice already established in countries such as Australia, the UK, France, and Denmark.

Importantly, the system does not prevent farmers from using saved seed. It simply ensures those using protected varieties can make a fair contribution towards the continuation of the innovation pipeline that sustains the arable sector.

The industry peak bodies encourage farmers who use FSS to regularly buy new seed to maintain genetic purity and variety benefits.