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Charging for the use of plant varieties

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  • Kingwell, Ross S.

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 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 royalties. However, this finding is subject to important caveats and practical limitations.

Suggested Citation

  • Kingwell, Ross S., 2001. "Charging for the use of plant varieties," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 45(2), pages 1-15.
    • Handle: RePEc:ags:aareaj:117468
    DOI: 10.22004/ag.econ.117468
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    File URL: https://ageconsearch.umn.edu/record/117468/files/1467-8489.00144.pdf
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    References listed on IDEAS

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    Cited by:

    1. Pluske, Johanna M., 2003. "Economics in plant breeding: A case focusing on doubled haploid technology," 2003 Conference (47th), February 12-14, 2003, Fremantle, Australia 58199, Australian Agricultural and Resource Economics Society.
    2. Beard, Rodney, 2008. "End-Point versus Point of Sale Levying of Plant Breeding Royalties: An Economic Analysis using Optimal Control Theory," MPRA Paper 7178, University Library of Munich, Germany.
    3. Adrien Hervouet & Stéphane Lemarié, 2023. "The Economics of Royalty Rates in Plant Breeding," Working Papers 2023-03, Grenoble Applied Economics Laboratory (GAEL).
    4. Sekine, Hisako, 2021. "Wheat Grower Payments for Varietal Use：Comparison between Japan, Germany, and Australia," Japanese Journal of Agricultural Economics (formerly Japanese Journal of Rural Economics), Agricultural Economics Society of Japan (AESJ), vol. 23.
    5. Wright, Brian D. & Pardey, Philip G. & Nottenburg, Carol & Koo, Bonwoo, 2007. "Agricultural Innovation: Investments and Incentives," Handbook of Agricultural Economics, in: Robert Evenson & Prabhu Pingali (ed.), Handbook of Agricultural Economics, edition 1, volume 3, chapter 48, pages 2533-2603, Elsevier.
    6. Viktoriya Galushko & Monika Çule & Richard Gray, 2020. "Western Canadian producers’ attitudes towards wheat breeding funding," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 68(4), pages 461-487, December.

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