THE MULTIPLE PATHS TO ROI
By: Lauren Comin, 
Director of Policy, 
Seeds Canada
SEEDS CANADA / SEEDS-CANADA.CA / A STRONG BREEDING SYSTEM PROVIDES CHOICE
Agreements supporting seed protected by PBR may 
require the user to commit to planting only certified 
seed. By purchasing and using the seed, a farmer is 
agreeing NOT to exercise the Farmer’s Privilege. These 
agreements may also include a requirement to sell the 
harvested grain to a specific authorized party.
Variety Use Agreement
Since 2020, PBR protected seed can also be cov­
ered under a Variety Use Agreement (VUA). Seeds 
Canada administers the contract-based VUA pro­
gram which facilitates royalty collection on farm-
saved seed. 
When farmers divert harvested grain of a VUA 
variety for farm-saved seed, they are invoiced a Variety 
Use Fee based on seeded acreage. This operates as a 
voluntary, contract-based system where farmers sign 
an agreement, declare their saved seed acreage, and 
pay a royalty to the plant breeder. The VUA platform 
is still in early days, but it has undergone several itera­
tions of improvement focused on user experience to 
ensure minimal administrative burden. 
Enforcing IP Rights
Seeds Canada supports and encourages protection of 
intellectual property, to ensure there is a level play­
ing field for those following the rules, and to ensure 
innovators see the return on investment. Beyond 
administering the VUA, Seeds Canada also advocates 
to ensure the Canadian policy environment supports 
innovation, has strong, fit-for-purpose tools to protect 
it, regardless of the tool used and whether they are 
supported by statute or contract. 
Canada’s IP protection framework still includes 
weaknesses that limit these returns. While a PBR 
regulatory amendment package which will increase 
the protection period of certain plant types and carve 
out certain exclusions to the Farmer’s Privilege is cur­
rently under consideration, more work is needed. 
Competitive jurisdictions with robust innova­
tion systems include a legislative requirement to 
compensate the breeder for the use of saved seed and 
report this use. Such requirements allow for balance 
between farmer choice and breeder ROI.  
Overall, a strong breeding ecosystem provides 
choice, and Seeds Canada works hard to ensure these 
choices are available to both our members and their 
customers. 
RESEARCH WITH THE goal of introducing innovation 
is hard work, and there needs to be a return on that 
investment. 
On average, it takes more than a decade to get a 
new variety to farmers, from first cross to the sale of 
certified seed. While the process to commercialize 
wheat, pulses, soybeans or canola may differ slightly, 
the key cost drivers are similar, including crossing 
nurseries and large-scale, multilocation field trials. All 
in all, estimates suggest it costs between $5 million 
and $50 million to launch a new variety. 
Canadian agriculture needs that investment in 
innovation to remain competitive. And to ensure we 
attract innovators to our country, we must create the 
conditions necessary for them to achieve a return on 
that investment. 
When it comes to creating the conditions for a 
return on investment (ROI), there are several pathways 
to success. 
Intellectual Property Protection
First, we need legal intellectual property (IP) pro­
tections supported by federal legislation. For seed, 
the most-used tools are patents and Plant Breeders’ 
Rights (PBR). In Canada, higher life forms, includ­
ing plants, cannot be patented but genes and genetic 
constructs may be.  
On one hand, patents prohibit farm saved seed use 
or use for further variety development by other par­
ties. PBR, on the other hand, is a framework specially 
designed for plants, which recognizes that breeding is 
constantly improving on previous varieties. 
In addition to providing exceptions for research 
and further breeding purposes, PBR in Canada also 
allows for “Farmer’s Privilege,” or the saving of seed 
by a farmer to be replanted on their own operation. 
While both patents and PBR can be used on their 
own, they can also be combined. 
Contractual Agreements
Second, breeders and seed distributors use contrac­
tual tools to complement the protection provided by 
statute (patent and PBR). And there are options avail­
able. Many patents are reinforced by technology use 
agreements or other on-package agreements. By using 
the seed, a farmer agrees to the terms and conditions, 
which vary based on situation, including restrictions 
on saving and replanting, as well as resale. 
36  SEEDWORLD.COM/CANADA JULY 2026

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