E.Loop 2008

STATUS OF IMPLEMENTATION FOR FSS-ROYALTY IN THE UNITED KINGDOM

Dr. Ernst-Adolf LoopSAATEN-UNION GmbH, Hannover

Tallinn, 4th of March 2008

TAIEX –Meeting

E.Loop 2008

The Legislation

EC-Council Regulation No 2100/94EC – Commission Regulation No 1768/95

Farmers have to pay for the use of FSS

Amount per ha or % of normal royalty for FSS-royalty has to be fixed between the plant-breeders-associations and farmers-unions in the member states.

The amount of royalty for FSS has to be significant lower than the royalty for certified seed!

E.Loop 2008

Situation for Cereal and OSR Breeding in the UKThe part of FSS both for cereal and OSR more than doubled in UK during the last 10 years to about 50% in average.

UK is the only country in Europe with a ratio of nearly 50% FSS with OSR!!! (Only few hybrid varieties are used in UK)

Cost of breeding is increasing due to new technologies:DH, Marker-Techn., Cell-cultures, GMO (?), etc.

Royalty – income for cereal-breeding is decreasing.

Only one familiar owned breeding unit survived in UK(Elsoms) in 2008

95% of the seed market is in the hands of 4-5 multinationals(Syngenta, Monsanto, Limagrain, KWS, Pioneer)

E.Loop 2008

Collection off FSS-royalty in UK

All farmers, who purchased certified seed, have to answer questions regarding use of FSS

The FSS royalty is collected at t of used FSS

All processors of FSS for farmers like mobilecleaning contractors have to informs the BSPBabout processed volumes, names and addressof their clients

BSPB is sending invoices both to farmers answeringthemselves for use of FSS and to those, who usedcleaning and processing facilities for their FSS

The collected amount is about 50% of normal royaltyCosts for collection of FSS are about 20% of collected amount

E.Loop 2008

Problems with Collection off FSS-royalty in UK

Farmers use very different amounts of FSS per ha:a payment only at t of FSS is always causing many discussionsuse of seed per ha may be very different:

rye: 80-90 kg per ha spring wheat 200-240 kg per hadepending at sowing time amount of use from FSS for spring barleymay be very different: 75 kg at sowing in February with low TGWup to 160 kg for sowing in late April with high TGW

Processors of FSS for farmers like mobilecleaning contractors have to informs the BSPBonly about processed volumes, not about ha sownby farmers

E.Loop 2008

Collection off FSS-royalty in UK

All farmers, who purchased certified seed, have to answer questions regarding use of FSS

All processors of FSS for farmers like mobilecleaning contractors have to informs the BSPBabout processed volumes, names and addressof their clients

BSPB is sending invoices both to farmers answeringthemselves for use of FSS and to those, who usedcleaning and processing facilities for their FSS

Costs for collection of FSS are about 20% of collected amount

E.Loop 2008

Status of FSS-royalty implementation: France (>50% FSS wheat / < 10% FSS for barley)

for wheat an agreement between farmers, processors, collectors

and seed-producers has been officialized under a French Decre:

0,5 € per ton of collection wheat

has to be forwarded to the breeders.

Users of certified seed can apply to get back

the amount of payed royalty !

E.Loop 2008

Optimal implementation of FSS-Royalty:Finland (70% FSS)

System implemented since 2001 with a fixed amount per ha for the use of FSS (3,84 €/ha)

Agricultural authorities collect needed data for FSS-royalty from farmers as a part of their „IACS-data collection work system“.

98% of all FSS-royalty is collected!!

Costs of collection only about 4% of FSS-royalty!!!

E.Loop 2008

Normal implementation of FSS-Royalty: Sweden (15% FSS)

95% of FSS-royalty is collected

costs of collection is about 15% of FSS-royalty semilar systems are implemented in DK, NL, BE, IR, UK

part of FSS is 15 – 50%, costs of collection: about 20% in average

E.Loop 2008

Implementation in New EC-Countries

SL (60% FSS): private agreements between big farms and plant- breeders for FSS

SK (70% FSS): System has recently been implemented and starts to work

PL (90% FSS): a state law is under discussion to assure paymentof FSS-royalty to cereal breeders

CZ (40% FSS): certified seed get subvention from the CZ-agriculture ministery lower volumes of FSSSystem for FSS-royalty is under implementation

LT (90% FSS): seed multipliers are only allowed to sell seed of newvarities to farmers who agree to

1. pay 4 €/ha for use of FSS

2. allow inspection of fields and field maps

3. pay a penalty of 20.000 € if 1. or 2. are not fulfilled