Grainswest - Spring 2025

Spring 2025 grainswest.com 35 DECLINING SUPPORT, TOUGH CONVERSATIONS Canada’s success in the global cereals market is largely due to its world-class breeding programs. For every dollar invested, barley and wheat farmers reap 26 and 33 times that in profits, respectively. Though public breeding programs do not require return on investment to continue their work, inconsistent and uncertain funding are problematic. New barley and wheat varieties take 10 to 15 years to develop, yet funding is delivered in five-year cycles during which time governments change and purse strings oen tighten. Lauren Comin, Seeds Canada director of policy, said the concerns of private breeders are valid and farmers should share them. In her judgment, the system has been broken for more than a decade. In 2013, Comin took on the role of research manager at the Alberta Wheat Commission. At that time, Agriculture and Agri-Food Canada (AAFC) signalled its intention to pull out of the pre-commercialization breeding stage. The government’s proposed solution was to transfer cereal germplasm to private sector partners for finishing, as it had done with canola. “Obviously producers got very upset,” she said. “Government eventually walked this messaging back, but they have not provided the financial and strategic support to the capacity needed to have a fully functioning, efficient program since then.” According to Comin, not much has changed since 2013. Government continues to pull back on funding and “send signals” that it wants to exit pre-commercialization entirely. She believes it’s not an idle threat, so she’s pushing industry to create a safety net that starts with building private sector capacity. “If we have a gap, we’re not going to notice it until the very end when nothing comes out of that pipeline for multiple years,” she said. “Given the competitive landscape we’re in, in terms of producing commodities, we can’t afford that.” BUILD PRIVATE SECTOR CAPACITY The first step to build private sector capacity is controversial but necessary, said Comin. She believes the seed sector must implement a universal royalty-based system to create fair treatment and equal opportunity for public and private players. This suggestion is not new. In 2018 and 2019, AAFC and the CFIA held consultations on the possible introduction of a royalty system on harvested grain (end-point royalty) or farm-saved seed (trailing royalty) on cereals. The consultation sought input from stakeholders about the placement of conditions on farmers’ privilege to pay fair compensation for saved and re-sowed seed. The consultation concluded with no consensus among stakeholders. In 2020, aer much deliberation, the sector finalized the Variety Use Agreement (VUA). The hope was that VUA would drive investment. Under VUA, farmers pay a fee each year they grow farm-saved seed of a protected variety. VUA now applies to just 27 varieties. Except for an oat variety grown in Eastern Canada, none are AAFC varieties. Given the choice between a VUA-protected private variety and an AAFC variety with no fee, it’s likely most farmers would choose the latter. “This creates a competition issue,” said Comin. Certified seed offers another means of financial support for breeders. Produced by dedicated seed growers, its production is bound by stringent requirements. Prior to commercialization, seed is carefully inspected for quality, varietal purity and germination. Just 20 per cent of western Canadian cereal farmers purchase certified seed. Most of the remaining 80 per cent use farm-saved seed without a VUA. Very little economic support trickles back to breeders. “When a farmer saves their “When a farmer saves their seed—and that privilege is enshrined in our Plant Breeders’ Rights legislation—they are generally not paying for the use of that innovation.” —Lauren Comin