50 GERMINATION.CA MARCH 2019 AS DISCUSSIONS SURROUNDING value creation continue, we thought it pertinent to take a look at how another country dealt with the issue of declining public invest- ment in cereals breeding. Australia now utilizes an end point royalty (EPR) system in cereals, pulses and spe- cialty crops. The following is based on information from Jason Reinheimer, senior breeder for Limagrain Cereals Research Canada based in Saskatoon. Reinheimer hails from Australia and had 12 years’ experience working in the post-EPR environment before moving to Canada. The land Down Under has had an end point royalty system for grain in place since the early 2000s. Here’s what that system looks like. Compiled by Marc Zienkiewicz VALUECREATION:ASSESSINGTHE AUSTRALIANEXPERIENCE HISTORY OF THE AUSTRALIAN WHEAT BREEDING INDUSTRY AND EPRS LATE 1800s Wheat breeding was largely publicly funded, a system that existed until the late 1990s 1990s Declining public investment in agriculture, little incentive for international investment/technology transfer 1994 Plant Breeders’ Rights Act enacted, enabling breeder to collect royalty on harvested material 1996 First EPRs introduced 1999 Grains Research and Development Corporation (GRDC) makes decision to create breeding companies and no longer fund wheat breeding TODAY Breeding in wide range of crops self-funded through EPR system WHEAT BREEDING COMPANY RETAIL OUTLET SALE INFO GROWER VARIETY INFO COLLECTION INFO TERMINAL/ ELEVATOR How does the Australian EPR work? An EPR is a fee paid on every tonne of grain produced (and sold as grain) by growers for each particular variety. The EPR amount is set by the variety owner (breeder) when the variety is released and may vary between varie- ties. A Variety License Agreement outlines the terms and conditions of sale of varieties to growers and the resulting EPR obligations. With every sale of seed, a Variety License Agreement must be provided to the grower by the retailer.