Grainswest - Spring 2019

Spring 2019 grainswest.com 43 BY GEOFF GEDDES • PHOTO BY TWITCHY FINGER PHOTOGRAPHY “It had a Bill 6 feel to it with a lot of emotion and finger pointing. There was a real lack of communication both before and during the session on how and when the models would be rolled out.” —Jason Lenz would involve the collection of an endpoint royalty (EPR) when the grain is delivered to a buyer, whereas the other is a contractual system in which farmers agree to pay a trailing royalty if they save their seed in subsequent years. In November and December of 2018, AAFC and the Canadian Food Inspection Agency (CFIA) held four industry engagement sessions across Canada to gather feedback on the proposed models. “I attended the session in Edmonton and didn’t feel it was very productive,” said Jason Lenz, past chair of Alberta Barley. “It had a Bill 6 feel to it with a lot of emotion and finger pointing. There was a real lack of communication both before and during the session on how and when the models would be rolled out.” When stakes are high, emotions often follow suit, but Lenz sees a solution. “There needs to be an economic analysis of both models. At the end of the day, a model must provide some return on investment for producers, whether that is three-to- one or 10-to-one. A value proposition should be presented to farmers so they can make a decision on which one works better for them, and thus far that hasn’t happened.” Moving east, the Ottawa session may have been thousands of kilometres from Edmonton, but the results were largely the same. “I saw a lot of misunderstandings and lack of information for farmers in the whole process,” said Kevin Bender, past chair of the Alberta Wheat Commission (AWC). “Things are being pushed too quickly with little consultation or details on the benefits for farmers, and that is creating resistance and pushback.” As yet, AWC and Alberta Barley haven’t taken a position on any proposed models. Both support the right of farmers to use farm-saved seed and they will support a model only if it proves to provide a higher return for farmers. SEEDMONEY At the same time, the Seed Synergy Collaboration Project partners—the Canadian Seed Growers’ Association, CropLife Canada and four other seed organizations—have endorsed the contract royalty option. It’s one that they say will drive plant breeding investment and benefit everyone in the agricultural value chain. “A key reason for our endorsement is the range of crops covered by the contract royalty model,” said Todd Hyra, western business manager for SeCan. “Seed variety agreements under this model can apply to any crop where a breeder and distributor wish to use them. As well, the phase- in period for this model means you can ramp up gradually as customers see opportunities for a variety.” Also encouraging to Hyra was a consultant’s report showing greater returns to plant breeders from the contract royalty model versus an EPR system. Clearly, there is still much to be considered. The engagement sessions were the first step in a three-step plan. Online consultations were slated to begin in December 2018 followed by face-to-face, public sessions in early 2019 for the CFIA/AAFC to present results gleaned from stage one and two in support of a single model. As of mid-January, neither had been scheduled. However the process unfolds, those driving it are well advised to take their time. “The timeline they showed us was quite aggressive,” said Lenz. “AAFC and the seed industry need to regroup after the first round and perform some due diligence on the questions asked by producers before continuing. They also need to open up the process for broader consultation with grassroots farmers. They may not like what they hear, but if you’re wanting to implement a new model, you’d better listen to the people who are paying for it. Take your time, do it right and find a made-in-Canada solution.” This desire for a custom-made approach is shared by others in the industry. “We must have a model that is tailored to Canadian farmers,” said Bender. “Maybe it’s one of the two proposed, or maybe it’s another option entirely. What’s critical is that farmers are allowed to use their own seed and the approach improves cereal breeding in Western Canada. In the meantime, we’ll keep moving ahead, but how we do that, and what the final model looks like, remains to be seen.” Though much time and effort has been expended in finding a solution that works for all, it may prove to be just the start of the process.