Breeding & Variety Commercialization

Breeding and variety commercialization is a key area of investment for SPG.

Putting better-performing varieties in the hands of growers is an important strategic priority to increase profitability while sustaining quality. SPG is targeting investments in multiple breeding programs, both private and public, to drive competitive variety advancements for pulses. 

Key priorities for breeding vary by crop but include:

Root rot resistance
Herbicide tolerance
Protein
Maturity
Adaptability
Drought tolerance

The Future of Pulse Breeding in Saskatchewan

Everything pulse growers need to know about breeding, variety commercialization, and royalties:

Background

The Crop Development Centre (CDC) and Saskatchewan Pulse Growers (SPG) had partnered on pulse breeding for 20 years.

Latest agreement ran from 2005–2020
SPG provided a large amount of funding and received exclusive access to varieties through the program
SPG commercialized those varieties royalty-free to Saskatchewan growers
SPG was interested in continuing with this model, while CDC was interested in moving to a different model with multiple funders and to generate revenue from the marketplace on the sale of their varieties

Why is SPG not able to provide new royalty-free varieties?

SPG was interested in continuing the royalty-free commercialization model for the future
The CDC chose to discontinue offering a royalty-free breeding and variety commercialization model for the future, therefore the previous royalty-free model that SPG was interested in was no longer available
SPG had to re-think its role in pulse breeding and landed on making breeding investments with multiple public and private partners, including with the CDC
SPG is led by farmers like you and did not take this direction lightly, but ultimately felt that a competitive breeding environment would provide the best chance to solve many of the current on-farm challenges and risks facing the industry

Why are royalties necessary to attract multiple breeders to work with pulses?

Given the comparatively small acreage of pulses in Saskatchewan and globally, investments in pulse variety development lags other commodity crops
Royalties are an important incentive to attract investment into new pulse breeding efforts and drive innovation
In order to attract breeders and demonstrate return on investment, there is an important need to capture value on seed. If not, no new investment will be realized and variety gains will be slower

Why is increased competition within pulse breeding positive for Saskatchewan growers?

The on-farm challenges, like root rot, that pulse growers are currently facing, are complex and require additional investment and expertise to deliver solutions
Multiple pulse breeders competing to bring to market the best-suited varieties for Saskatchewan growers will drive innovation and accelerate the release of new, better-performing varieties which must compete with existing royalty-free varieties
More competition helps keep price of seed and costs associated with royalty capture models, such as Variety Use Agreements (VUA), at acceptable levels

What will the royalty structure look like?

Royalty models and structures will vary on a variety-by-variety basis when new options become ready to be commercialized
Currently, the most popular royalty capture model is the Variety Use Agreement (VUA)
The most common VUA cost for Western Canadian varieties is $2–5/acre
Increased competition in pulse breeding will assist in keeping fees at an acceptable level
New varieties released with royalties attached will need to have higher yield or other valuable characteristics to justify the increased cost in order for farmers to adopt them

What is a Variety Use Agreement (VUA)?

VUA is one example of a royalty capture model and is a contractual agreement between the farmer and the seed distributor outlining the maximum fees associated with future farm-saved seed
The online system provides a mechanism for seed use declaration and collection of fees
The seed distributor collects fees through VUA and submits them back to the plant breeder

Will I still be able to use farm-saved seed?

Yes, you are permitted to continue using farm-saved seed
If a farmer chooses to grow existing royalty-free varieties, farm-saved seed use will continue to be permitted with no royalties
If a farmer chooses to grow a new royalty-bearing variety, and wishes to use farm-saved seed, there would be a per acre fee to do so

Will I continue to have access to royalty-free varieties?

Grower autonomy and the choice to grow new royalty-bearing varieties or existing royalty-free varieties will remain
SPG continues to have a say in the de-registration of any existing royalty-free varieties and has no plans to de-register varieties that farmers continue to grow
Scenarios where varieties could be supported for de-registration include if there are little to no acres grown or if negative quality issues arise

As a grower, I am paying a levy to SPG and could also be paying a royalty on new varieties in the future —why is that?

Investing in variety development is only one area in which growers’ levy dollars are invested by SPG. Other important areas that require funding include:

Other areas of research & development including work to reduce agronomic constraints while maximizing yield and sustainability

Market growth & diversification including work to expand markets and uses for pulses and pulse ingredients
Market access & advocacy including championing growers’ interests by actively engaging and collaborating with provincial and national partners
Grower engagement & extension including communicating important timely information to growers

Upfront grower investment in breeding is needed to help attract and retain public and private breeding programs in pulses
Royalties paid directly by farmers will ensure sustainable revenue for competitive breeding programs for the future
A portion of royalties will flow back to SPG to reinvest back into breeding programs and other priority areas

What are the new pulse breeding priorities?

As a grower-led organization, SPG, including grower representatives, has a seat at the table to drive growers’ greatest production challenges into the priorities of new breeding programs
SPG is connected to the growers in Saskatchewan and best aligned to convey the challenges and constraints to pulse production – these priorities will be at the forefront of this and other new breeding collaborations
Current grower-led breeding priorities for peas and lentils include: