W
hen Agriculture and Agri Food Canada (AAFC) announced 
its plans in January to close seven research stations and 
eliminate 665 staff positions, the news sent shockwaves through 
the agriculture community, and for good reason. It added urgency 
to a long-standing conversation: how do we sustainably support 
agriculture research, plant breeding and innovation in Canada?
Plant Breeders’ Rights (PBR) applications in the cereal sector 
have declined in recent years. Fewer applications mean fewer prod­
ucts entering the market and reduced R&D investment compared 
to some of our global competitors. For farmers, that means fewer 
options and less competitive varieties on the market.  
The current system has brought us a long way, but investment in 
developing new varieties hasn’t kept pace. There’s an opportunity to 
evolve, and the sooner we act, the better positioned farmers will be.
When we look specifically at Canada Western Red Spring 
(CWRS) wheat, the market is largely dominated by products from 
publicly funded AAFC breeding programs. These programs have 
been vital to Canadian agriculture, but when 90% of the market 
relies on one breeding program, we are vulnerable. Competition 
drives innovation, ultimately giving farmers access to the superior 
varieties they need to thrive on a global scale.
Today, breeding organizations primarily generate revenue 
through sales of certified seed, which averages around 29% across 
Western Canada. That’s not enough to sustain the millions of dollars 
in upfront investment and the average 13 years it takes to bring a 
new variety to market.
PARTNER CONTENT
Better Varieties Need Investment 
To Deliver Results
By Canterra Seeds 
In a highly functional market, breeding organizations rely on 
a predictable, sustainable return on investment (ROI) to continue 
developing new varieties. What we need is a comprehensive 
royalty collection system like the Variety Use Agreement (VUA). 
Without it, it becomes difficult to attract the investment, innovation 
and expertise needed to advance our breeding programs. We need 
a funding model that rewards the impact varieties have on farms 
while sustaining the investment behind them. VUA makes that con­
nection. 
Ultimately, farmers make crop decisions based on what’s good 
for their operation. Many older varieties still perform well, and 
since AAFC has not established a VUA, farmers see it as an added 
cost. That’s a fair concern. The cost is now, but the benefit is later, 
and farmers want to see clear value before they commit.
But when you run the numbers, the value becomes clear. If 
the VUA fee on farm-saved seed is two dollars per acre, a farmer 
needs just a 0.3 bushel per acre yield increase to break even. Two 
recently released CANTERRA SEEDS varieties bred by Limagrain 
Cereals Research Canada, CS Baker and CS Breadwinner, have 
shown increases of more than seven per cent against some leading 
varieties. Less than a one per cent yield increase is all it takes to 
come out ahead. The farmer wins, and so does the breeder who is 
directly compensated for developing a superior variety.
SEPTEMBER 2026  SEEDWORLD.COM/CANADA   25

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