Charging for the use of plant varieties
Document Type
Article
Publication Date
12-18-2002
Journal Title
Australian Journal of Agricultural and Resource Economics
ISSN
ISSN 1364-985X eISSN 1467-8489
Keywords
Plant breeding, Farm economics, Farmer charging (profit-based or ad valorem royalties), Risk adverse farmers, Seed varieties, Seed cost
Disciplines
Agribusiness | Agricultural and Resource Economics | Agricultural Economics | Agricultural Science | Agronomy and Crop Sciences | Natural Resource Economics | Natural Resources Management and Policy | Plant Biology | Plant Breeding and Genetics
Abstract
Private and many publicly funded plant breeding organisations charge farmers for use of varieties they develop. This article compares four alternative charging mechanisms and outlines responses to these alternatives by farmers and plant breeders. Risk-averse farmers and breeders are shown to have opposite preferences for charging mechanisms. Results suggest profit-based or ad valorem royalties are preferred by farmers whereas breeders prefer area or tonnage-based royalties. Risk-sharing arrangements between both parties could lead to an overall preference for profit-based or ad valorem royalties. However, this finding is subject to important caveats and practical limitations.
Recommended Citation
Kingwell, R. (2001), Charging for the use of plant varieties. Australian Journal of Agricultural and Resource Economics, 45: 291-305. https://doi.org/10.1111/1467-8489.00144
