1. What's the point of the FAIR PLAY campaign?
By tackling evasion of farm-saved seed payments, the FAIR PLAY campaign aims to create a level playing-field in which all farmers contribute fairly for the benefits of using farm-saved seed. This in turn will help safeguard continued investment by UK-based plant breeders in developing the new varieties farmers and their customers depend upon.
2. What does the FAIR PLAY campaign involve?
Communication is central to the campaign, involving a range of initiatives under the FAIR PLAY banner to raise awareness of the benefits of continued investment in plant breeding and the need to combat farm-saved seed evasion, as well as ensuring farmers are clear about their legal responsibilities on farm-saved seed payments.
In addition, plant breeders have introduced a number of practical measures to improve compliance, including major investment in a new farmer database, simpler forms and better intelligence about seed and variety use. This system will cover many more farmers than before, and will vastly improve the ability to identify and tackle noncompliance.
3. Who is behind the FAIR PLAY campaign?
The FAIR PLAY campaign has been developed as a joint initiative between the British Society of Plant Breeders (BSPB) and the major farming unions in the UK (NFU, NFU Scotland and Ulster Farmers Union), following an agreement to take action to combat farm-saved seed evasion.
Support for the campaign and its objectives has also been pledged by other organisations across the industry.
4. How is plant breeding funded?
In 1961, an international accord (known as the UPOV Convention) established a form of intellectual property protection on plant varieties, known as Plant Breeders' Rights. For the first time, this allowed plant breeders to collect a royalty on the production and/or sale of certified seed of protected varieties, similar to the intellectual property protection offered via copyright on books and CDs. This system provides plant breeders with an incentive to develop successful varieties, and also stimulates further research and innovation by ensuring that all protected varieties are freely available for use in future breeding programmes.
Until the early 1960s, plant breeding in Britain was largely confined to publicly funded research. This situation changed dramatically in the mid-1960s when Plant Breeders' Rights were introduced in the UK through the 1964 Plant Varieties and Seeds Act. This triggered a rapid expansion of plant breeding as a commercial enterprise in its own right, and paved the way for major advances in the performance, quality and diversity of crop production in Britain.
5. When was the requirement to pay for the use of farm-saved seed introduced?
The UPOV Convention was amended in 1991 to cover payments on farm-saved seed. This struck an important balance between farmers' longstanding tradition of saving seed, and the contribution of modern plant breeding to the significant genetic gains enjoyed by growers.
The right of plant breeders to charge a royalty on farm-saved seed became EU law in 1994 and was passed into UK law in 1998. Although farm-saved seed offers the same genetic advantage as certified seed, this legislation stipulated that royalty payments on farm-saved seed must be 'sensibly lower' than on certified seed.
6. Why should farmers pay for the use of farm-saved seed?
The income from farm-saved seed payments is needed to safeguard continued investment in improved varieties, bred for UK conditions.
Traditionally, the royalties paid on certified seed have been the lifeblood of the plant breeding industry, and remain the principal source of income today. With farm incomes under pressure, however, use of farm-saved seed has increased significantly in recent years. This has hit total income to plant breeders, highlighting the importance of farm-saved seed payments, which now make up around 20-25% of the income breeders depend on for future investment.
7. Why do we need continued investment in plant breeding?
Britain's plant breeders have delivered major advances in the yield, quality and performance of agricultural and horticultural crops. These achievements are highly valued by farmers and their customers. Last year, 98% of winter wheat varieties and 97% of spring barley varieties sold as certified seed came from UK breeders.
Plant breeding remains a vital industry to keep farmers competitive on world markets. The need for a broad range of new varieties, adapted to our unique growing conditions, is greater than ever as farmers strive to meet the challenges of new disease pressures, changing market requirements and shifts in agricultural and environmental policies.
8. How is farm-saved seed defined?
Farm-saved seed is legally defined as seed planted on a farmer's own holding using material harvested on his own holding. In this context, 'own holding' may relate to one or more farms, provided they are managed as the same business. By law, a farmer cannot purchase or otherwise transfer grain from another business for subsequent re-planting. Any farmers who are unsure of their individual circumstances can call BSPB on 01353 653209 to discuss their specific situation.
9. Who sets the payment rates on farm-saved seed?
Farm-saved seed payment rates for each crop species are calculated from the relevant weighted average certified royalty rates and published annually in accordance with an agreement between BSPB and the farming unions.
10. Are all varieties eligible for payment?
The original farm-saved seed legislation included a time-limited exemption allowing farmers to continue saving older varieties (known as 'zero-rated varieties') without payment for a period of seven years. Under both EU and UK legislation, this seven-year period has now expired.
However, BSPB has reached an agreement with the UK farming unions allowing genuine use of these older varieties as farm-saved seed to continue without payment.
To ensure this exemption applies only to genuine users of older varieties, BSPB and the farming unions have also agreed changes to the scheme's administration to discourage evasion of payment through false declarations.
Under the new agreement, previously zero-rated varieties will become eligible for farm-saved seed payment, but will attract a 100% instant refund applied by the seed processor or BSPB.
This refund system will be subject to random audit by BSPB to ensure proof of genuine use can be verified through certified seed invoice, seed sample or field inspection. A statement to this effect will appear on the processor or BSPB invoice.
Previously zero-rated varieties which now qualify for a 100% instant refund are as follows:
| Winter wheat |
Winter barley |
Spring barley |
| Fresco |
Halcyon |
Chariot |
| Haven |
Intro |
Dandy |
| Hereward |
Manitou |
Hart |
| Riband |
Pastoral |
Tyne |
| Soissons |
|
|
|
|
|
| Field peas |
Field beans |
|
| Princess |
Victor |
|
11. Who collects farm-saved seed payments and where does the money go?
BSPB collects farm-saved seed payments on behalf of plant breeders. Administration costs of the UK system amount to just 7p per £1 collected, significantly less than equivalent systems in other EU member states. The remaining income is disbursed to individual plant breeders.
12. How are farm-saved seed payments collected?
Two payment routes are available to farmers. Most payments (around 80% of the total) are collected via registered seed processors as a component of the processing invoice. In this instance, payments are calculated on a tonnage basis. Alternatively, farmers who have not paid through their seed processor must declare their use of farm-saved seed, and pay for the use of any eligible varieties, directly to BSPB. In this case, payments are calculated on a hectarage basis. Farmers who have their own seed processing machinery may be eligible to register with BSPB as a farmer processor and make payments directly to BSPB at a tonnage rate. Contact BSPB on 01353 653209 for further information. Both tonnage and hectarage rates are published annually by BSPB.
13. How do farmers ensure they have complied with the farm-saved seed rules?
BSPB is significantly increasingly the number of farmers who receive farm-saved seed declaration forms. Farmers are legally obliged to declare their use of farm-saved seed to BSPB.
Farmers who have used 100% certified seed should simply declare this, sign the form and return it to BSPB. They need take no further action.
Similarly, farmers who have had all their farm-saved seed processed via a registered seed processor, and have already made all their farm-saved seed payments to their processor, should declare this, provide the relevant details, sign the form and return it to BSPB. They need take no further action.
Farmers who have used farm-saved seed for which payment has not been made via a registered processor, for example if it has been self-processed or sown straight from the barn - as is often the case for crops such as field beans or cereals for on-farm feeding - must declare their use of that seed and make any payment due direct to BSPB.
The legal requirement to declare all use of farm-saved seed to BSPB, when requested, applies whether the seed has been processed or taken straight from the barn.
14. Are there any exemptions from the requirement to declare and pay for using farm-saved seed?
Small farmers, as defined under EU law, are exempt from the requirement to declare and pay for the use of farm-saved seed.
15. What will happen to farmers who continue to avoid payment?
While the FAIR PLAY campaign aims to raise awareness of the value of continued investment in plant breeding, and to ensure farmers are aware of their legal responsibilities on farm-saved seed payments, its central objective is to combat farm-saved seed evasion.
The FAIR PLAY campaign therefore includes a number of practical measures to improve compliance, including major investment in a new farmer database, a simplified farm-saved seed declaration form, and new arrangements to verify genuine use of previously zero-rated varieties. In future, the system will cover many more farmers than before, and will vastly improve the ability to identify and tackle non-compliance.
Individual farmers would not tolerate a situation in which 10% of their legitimate income is written off every year to bad debt. Plant breeders are no different, and BSPB will take legal action against farmers who persistently fail to comply with their obligations on farm-saved seed. If proven in Court, this may result in a criminal conviction and substantial financial penalties.
16. Where can I find more information?
Telephone BSPB's Farm-Saved Seed Helpline on 01353 653209.
