56 GERMINATION.CA JANUARY 2019 IN LATE 2018, consultations were held across the country to get feedback on two models proposed to create fund- ing for plant breeding and varietal development in the cereals sector. The presentation Transforming Canada Cereals Sector Through Value Creation was given by Carla St. Croix, director of Innovation and Growth Policy for the Strategic Policy Branch of Agriculture and Agri-Food Canada, and Anthony Parker, commissioner for Canada’s Plant Breeders’ Rights Office. What follows is a brief run-down of the two options presented at the meetings and examples from other countries that have adopted value creation models of their own. Finally, we asked St. Croix and Parker for their take on what the big myths were surrounding value creation and what stakeholders can expect moving forward. Made-in-Canada Value Creation Funding Models: The Two Contenders End-Point Royalty: A national non-refundable royalty payable on all harvested material (ie. grain). Leverages the existing provincial check-off system to collect the non- refundable royalty. Royalties to be distributed to breeders based on their respective market share. Royalty Collection Enabled via Contracts: This option has been endorsed by the Seed Synergy partners and is the option that the Seed Value Use Agreement (see page 36) is based on. A mechanism allowing for contracts where produc- ers agree to diverted grain (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). What Have Other Countries Done? France: Royalties are collected on harvested grain through a national levy that is charged on the sale of wheat upon delivery to the buyer. Royalty rate is limited by legislation. System is efficient (only small amount of on-farm consumed grain and small farm exemptions escape) and is simple/inexpensive to administer. UK: Farmers are required to declare farm-saved seed use with royalties collected via contractual agreements between breeders/growers. Royalty rate is limited by leg- islation. While efficient (90 per cent of royalties collected), administrative costs are significant. Seed cleaners collect- ing and remitting royalties is less practical in a Canadian context. Australia: Rates are set by breeders, and royalties are collected at the point of delivery, with breeders being responsible for royalty collection. Most royalties are auto- matically deducted where grain is sold/delivered. Variable rates provide flexibility, but availability of older varieties kept rates low for up to 10-15 years and there is potential for mis-declaration. Public consultations show a need for producers to be informed. Compiled by Marc Zienkiewicz SEED SYNERGY: MOVING FORWARD VALUECREATION: MYTHSAND TRUTHS