Value Creation

Background

Agriculture and Agri-Food Canada (AAFC) and the Canadian Food Inspection Agency (CFIA) are currently conducting engagement sessions around “Value Creation” to discuss changes to the way new varieties of wheat, barley and other Canadian crops are developed in Canada. These consultations are currently underway and they are asking for producer input. View the Value Creation Stakeholder Engagement Meeting Presentation made in Winnipeg on November 16th: Government-Value-Creation-Consultation-Deck.

Proposed changes

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

End Point Royalties Royalty Collection Enabled Via Contracts
 

• 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

 

• 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

What can you do as a producer?

  • Provide feedback to the government directly. Comments can be submitted to:
    AAFC – Carla St. Croix  stcroix@canada.ca or 613-773-1221
    CFIA – Anthony Parker parker@canada.ca or 613-773-7188
  • Learn more about the potential changes. Continue to check back to our website for more information as it becomes available.
  • Attend the MWBGA sponsored session as part of Ag Days 2019 on January 23, 2019. Anthony Parker & Carla St.Croix will be delivery a presentation at 1:45 pm in the FCC Theatre titled “Value Creation Consultations: What You Should Know“. More information at https://www.agdays.com/session/value-creation-consultations-what-you-should-know/
  • Attend CropConnect 2019 where Anthony Parker & Carla St. Croix will be delivering a presentation titled “Transforming Canada’s Cereal Sector Through Value Creation“. The presentation will be February 13th at 3:20 pm in Embassy Room D-F.  More information at https://cropconnectconference.ca/Agenda.pdf.

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”. Read more by visiting www.seedvaluecreation.ca. | Read the Seed Synergy Report: Seed Synergy Report | Read the Seed Synergy Green Paper that was released in fall of 2017: Green Paper on the Next Generation Seed System

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