FAQ

Why are royalties on farm-saved seed required?

The ability to collect royalties is important to ensure incentives for research and development in plant breeding. In return New Zealand farmers are benefiting from new varieties of barley and wheat that deliver higher yields, better productivity and quality.

It typically takes about 10 years to develop a new variety with desirable traits such as higher yields and better pest resistance. In terms of financial costs, it costs more than $1 million to bring a new product to market.

How does the farm-saved seed royalties system work?

Farmers who save and replant PVR-protected seed pay the rights-holder an annual flat royalty fee based on seed planted in the current production year.

Royalties will only be payable by those farmers who use saved seed varieties that have protection under the legislation and farmers are free to continue using common varieties without paying royalties.

When are farm-saved seed royalties payable?

The Farm Saved Seed System sends out an annual declaration form to farmers who saved and replanted PVR-protected seed varieties during the current calendar year.

What information will be sought from farmers?

Farmers are asked to supply the following details via an online declaration form to the Farm Saved Seed System, by 30 November:

  • Species saved
  • Variety name
  • Quantity saved – tonnes
  • Farmer details

On receipt of the above details the Farm Saved Seed System will calculate from the declaration form the royalty payable and enable the payment to be made on-line.

What happens if the farmer does not save non-protected seed?

A ‘nil’ declaration will also need to be submitted, but there will be no change to farmers’ ability to save and reuse non-protected seed varieties.

How are farm saved seed royalties handled?

Farmers pay the Farm Saved Seed System. The System will deduct an administration fee from the royalty paid and pass the remainder on to the breeder or appointed agent.

Who is the Farm Saved Seed System?

The FSSS has been tasked to collect royalties on farm saved seed and distribute the royalty payments to rights holders or their agents.

How will the Farm Saved Seed Royalties System be managed?

The Farm-Saved Seed Royalty System will be guided by a Board made up of representatives of breeders, seed merchants and seed growers or their industry groups.

The role of the Farm Saved Seed System is to oversee the administration, monitor the System’s financials, provide advice on potential changes and improvements to the collection system, confirm the annual cultivar list and work with the Plant Variety Rights Office (PVRO), as appropriate.