Royalties on Farm Saved Seed explained

Members of the grain and seed and plant breeding industry and Federated Farmers Arable have worked together to introduce a voluntary system to collect royalties on farm saved seed.

The system is built on new provisions in the Plant Variety Rights Act 2022 to ensure fair returns to plant breeders.

Varieties in application for and granted PVR will automatically enter the eligibility list.

Under a voluntary declaration, farmers who save and replant PVR-protected seed pay the rights-holder an annual royalty based on usage per calendar year.

The parties have acknowledged that royalties support breeding and varietal improvement.

The ability to collect royalties is an important part of ensuring incentives for research and development in plant breeding. In return New Zealand farmers receive improved yields and quality from new barley and wheat varieties.

Royalties will only apply to those farmers who use saved seed varieties that are on the eligible list and protected by law.

A list of eligible varieties, updated annually, is available here.

Royalty rates, reviewed annually, are shown here.