44 SEEDWORLD.COM/CANADA JULY 2026 And producers are understandably cautious about systems that introduce new costs. Farmers consistently ask valid questions, Hyra notes: Where does the money go? Who benefits? Will this improve varieties? Am I paying twice through levies and royalties? Those concerns surfaced repeatedly throughout the webinar discussion. “Grower levies and royalties serve funda mentally different purposes,” Potts says. Levies support broad industry activi ties like market development and public research. Royalties, meanwhile, compen sate the use of specific intellectual prop erty — namely the seed variety itself. Still, organizations recognize the transition creates overlap. Many producer groups continue investing levy dollars into breeding while royalties simulta neously begin flowing through VUA systems. To address that concern, some organizations are negotiating royalty- sharing arrangements tied to the varieties they helped fund. The long-term vision, supporters say, is not perpetual double payment. It’s a transition toward more self-sustaining breeding systems. Why Retailers Matter More Than Ever One theme emerged repeatedly through out the discussion: retailers and seed growers themselves may ultimately deter mine whether value creation succeeds in Canada, because when farmers decide whether to adopt a VUA variety, the con versation usually happens with someone they already trust. “The retailer is really the linchpin in this system,” Hyra says. That trust relationship becomes especially important because the VUA system itself is not purely transactional. It requires understanding of how the agree ment works and what benefits accompany participation. And perhaps most impor tantly, retailers must help producers con nect the royalty to actual on-farm value. “The issue becomes much less ideo logical when tied directly to agronomic performance,” Reinheimer notes. One subtle but important dynamic surfaced during the conversation: younger producers may view value creation through a different lens. For younger growers accustomed to invest ing in precision agriculture, software platforms, automation, and advanced equipment, the concept of paying for innovation feels less foreign. “New generations tend to embrace technology more readily,” Reinheimer says. “And seed is technology.” That generational shift may matter enormously over the next decade, especially as succession accelerates across Canadian farms. Canada’s Defining Choice The deeper question underlying the entire value creation debate is strategic: what kind of innovation ecosystem does Canada want to build? KWS Seeds Canada, Limagrain, and other multi national breeding companies already operate across dozens of countries. They continuously evaluate where investment makes sense. And according to multiple panelists, Canada currently trails com peting markets. That does not mean Canada lacks strengths. Far from it. But the global innovation race is accelerating. “Countries that solve funding chal lenges faster tend to attract more com petition, more breeding programs, and ultimately more innovation,” Reinheimer adds. SUPPORTED BY: ENDORSED BY: RETAIL STRATEGY Scan the QR code to watch our full-length webinar on this topic for even more insights Carl Potts, executive director for Saskatchewan Pulse Growers. Kenny Piecharka is country manager for KWS Seeds Canada. Trevor Sears is executive director for Western Crop Innovations.
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