OP-ED: No Investment, No Innovation — What’s at Stake for Canadian Farmers

In an era where agricultural innovation is more critical than ever, the future of Canadian farming hinges on the investment in crop genetics. Failing to fund this area today could limit farm productivity and profitability tomorrow, as momentum builds behind new value capture tools. Innovation is undeniably important to Canadian agriculture. To remain competitive, farmers need access to a constant source of innovation through improved crop genetics.

Lauren Comin, the Seeds Canada policy director, emphasizes that this is perhaps the number one priority for Seeds Canada and their members. With this at the top of the agenda, Seeds Canada hosted a meeting of more than 70 stakeholders, including members of the seed industry, farmers, government, public and private scientists, and experienced experts, following the annual meeting of the Prairie Grains Development Committee in Banff, Alta. earlier this month.

The discussion highlighted that the Canadian variety development system is in a delicate and precarious position. Current policies do not encourage optimal investment, and with cuts to public breeding capacity, the weaknesses in our policy environment become even more glaring. Industry leaders identified the issue years ago and, with widespread input, came to a uniquely Canadian solution, the Variety Use Agreement (VUA). Launched in 2020, the VUA allows investors in variety development to see a return on investment with each use of the genetics and makes enforcing their intellectual property rights more efficient.

The value capture system has proven to drive investment. When public funding crises drove the introduction of systems to capture royalties on all use of seed in Europe and Australia, Dr. Jason Reinheimer, Head of Cereals and Pulses Research for Limagrain, witnessed a surge of private investment and a shift of public sector research from commercial to pre-competitive, which allowed for genetic gains to increase. In Australia, yield gains achieved from the transition to semi-dwarf varieties grew further with increased investment, going from 0.41% gain in yield per year to 1.74%, he says.

While Canadian wheat yield gains have been impressive, the potential for further growth remains significant. The VUA and similar value capture mechanisms are crucial for ensuring that the investment in crop genetics is sustainable and that the innovations developed are accessible to farmers. By fostering a policy environment that encourages investment and innovation, Canada can continue to lead in agricultural productivity and profitability.

The meeting concluded with a renewed commitment to strengthening the Canadian variety development system. Stakeholders agreed on the need for continued collaboration between the seed industry, farmers, and government to address the challenges facing the sector. The VUA serves as a model for how value capture can drive investment and innovation, ensuring that Canadian agriculture remains competitive on a global scale.

In conclusion, the future of Canadian farming is closely tied to the investment in crop genetics and innovation. By implementing policies that encourage value capture and investment, the sector can continue to thrive and adapt to the changing demands of the market. The meeting in Banff underscored the importance of collaboration and a forward-thinking approach to ensure that Canadian agriculture remains at the forefront of innovation.