| End point royalties are payable on each tonne of grain produced by a grower, except for that retained for seed for sowing. Seed for sowing is exempt from a royalty under the provisions within the PBR Act for growers to retain seed. Growers are liable to payment of the royalty for all other grain produced, regardless of whether it is sold or retained by the grower for stock feed or processing purposes. |
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The system for collecting royalties is changing as the industry develops more experience in handling collection systems. There are processes in place to seek to harmonise the obligations on growers in relation to initial licences for growers to grow varieties and the collection of royalties. Grain traders have generally indicated agreement to collect royalties on behalf of owners of varieties as part of their transaction process when buying grain from growers. They have required the breeders to coordinate this whole process through one collection agency, to minimise the associated administration costs and the structure for undertaking this is currently being developed.
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Growers should make sure they understand the royalty rate that is applied to any variety of interest to them and make their own value judgement as to whether the variety is one that is worthwhile for them to grower, relative to other varieties.
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