E.Loop 2008 STATUS OF IMPLEMENTATION FOR FSS-ROYALTY IN THE UNITED KINGDOM Dr. Ernst-Adolf Loop SAATEN-UNION GmbH, Hannover Tallinn, 4 th of March 2008 TAIEX –Meeting

E.Loop 2008 The Legislation  EC-Council Regulation N o 2100/94 EC – Commission Regulation N o 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 UK The 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 % 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 mobile cleaning contractors have to informs the BSPB about processed volumes, names and address of their clients BSPB is sending invoices both to farmers answering themselves for use of FSS and to those, who used cleaning and processing facilities for their FSS The collected amount is about 50% of normal royalty Costs 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 discussions use of seed per ha may be very different: rye: kg per ha  spring wheat kg per ha depending at sowing time amount of use from FSS for spring barley may be very different: 75 kg at sowing in February with low TGW up to 160 kg for sowing in late April with high TGW Processors of FSS for farmers like mobile cleaning contractors have to informs the BSPB only about processed volumes, not about ha sown by 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 mobile cleaning contractors have to informs the BSPB about processed volumes, names and address of their clients BSPB is sending invoices both to farmers answering themselves for use of FSS and to those, who used cleaning 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. U sers 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 payment of FSS-royalty to cereal breeders CZ (40% FSS):certified seed get subvention from the CZ-agriculture ministery  lower volumes of FSS System for FSS-royalty is under implementation LT (90% FSS):seed multipliers are only allowed to sell seed of new varities 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 € if 1. or 2. are not fulfilled