Seed royalties at centre of Winnipeg consultation

It's being touted as a way to boost investment into research for cereal crops, but concerns are being raised about a proposal that could see farmers pay royalties on the grain seeds saved from their crops.

Consultations begin in Winnipeg on Friday — one of four consultations nationally — on the funding proposal between companies in the seed sector and the federal agriculture department. If implemented, it would see producers make royalty payments on seeds derived from the previous year's crops and distributed to plant developers or rights holders.

Todd Hyra is the president of the Canadian Seed Trade Association, one of the groups in favour of the royalty program. He said discussions on such a plan have been ongoing for about a decade.

"What it means for producers is innovation," he told CBC News on Thursday. "We've been very successful with public breeding programs [to date].  We want to shore those programs up and attract investment from other parts of the world."

However, the proposal isn't being met with enthusiasm by some farmers. James Melnick, who has farmed near Russell, Man., with his family for more than 20 years, worries about what paying additional royalties on cereal crops could mean for his bottom line.

Currently, he said cereal seeds purchased from a seed breeder or developer are planted by producers, and seeds derived from that crop are then used by the same farmer year after year, down the line. But, he said, royalties could mean he pays breeders or sellers for those same seeds, even though they came from his field, yearly.

They want to take this right away, and they want us to pay to seed our own seeds,- James Melnick, a farmer near Russell, Man.

"They want to take this right away, and they want us to pay to seed our own seeds," he said. "Pay a royalty back to them."

A farmer's 'fundamental rights'

"I think it's one of those fundamental rights as a farmer," Menick added.

He plans to voice his concerns at the Winnipeg hearing on Friday.

Hyra said most developed countries have some sort of royalty program for seeds — either an end-point or seed-based royalty, the two options being looked at for Canada.

"What it means for producers is innovation," he said, noting that a royalty program on cereals would bring Canada up to the same level as several other counties.

"For producers, it's about getting access to the best technologies possible."

Melnick said while he agrees more funding is needed for seed research, he believes this isn't the way to fund it.

"That could be handled in so many other ways without trampling on my right to grow my own feed," he said.

"You keep compiling these extra charges, and yes it has an effect on my bottom line, but I think it's more than that," Melnick said. "I think the only one that really benefits here are the seed breeders and the seed growers."

Hyra said much more discussion needs to be had before a proposal is recommended to the federal government.

Friday's consultation takes place at the Delta Hotel in downtown Winnipeg.

Other sessions are being held in Ottawa on Nov. 30, as well as in Saskatoon and Edmonton on Dec. 4 and 6, respectively.