End Point Royalties

 

 

 

 

 

 

 

 

 

 

 

 

Downlaod a copy of the Heritage Seeds Industry Seed Licence Agreement.

 

What are End Point Royalties?

 

End Point Royalties (EPR) are a type of levy on the total grain produced from the seed and replaces the seed royalty.

Traditionally royalties on most crops were collected at the point of seed sale, as part of the seed cost. Breeders now elect to apply EPR on newly released varieties as a more equitable mechanism for generating a revenue stream back to the breeder.

 

Heritage Seeds along with other seed companies have collaborated to try and simplify the EPR data collected from growers. The primary goal has been to increase the number of grain traders that are automatically deducting the EPR at the time of purchase or delivery.

 

Heritage Seeds currently manages EPR for a wide range of field crop varieties. Our staff administer the end point royalty collection and reconciliation process on behalf of breeders. Grower declarations, grain delivery information and contract auditing are all used to ensure appropriate EPR are being collected.

 

For growers: At the end of each season, The National Grower Register (NGR) is responsible for the distribution of the Combined Harvest Declaration. Growers are to complete and return a Combined Harvest Declaration back to NGR, who then collate the data and forward it to each End Point Royalty Manager to process and provide a tax invoice, if applicable.

 

Growers are responsible for keeping records regarding the tonnage of EPR grain either sold or retained and for the payment of any End Point Royalties.

 

For resellers: The Retail Seed Sales Advice form is for resellers to provide us with details of the varieties, tonnage and farmers' details they have sold seed to in a standard format. This can be done by completing a Retail Seed Sales Advice form and returning it samery@heritageseeds.com.au.

 

Please contact Steve Amery email samery@heritageseeds.com.au or call 1800 112 400 if you need any further assistance.

 

What are the benefits of End Point Royalties?

 

Traditional seed royalties increase the initial purchase price of the sowing seed, however End Point Royalties are calculated on the resultant grain produced from the purchased seed. Royalties based on production rather than seed purchase are considered the most equitable means of ensuring continued investment in plant breeding.

The Australian grain industry needs new varieties to remain competitive in world markets and the development of improved varieties through breeding is vital to future success. The End Point Royalty system a user pays system that enables the grower to produce the variety and contribute proportionately based on its success rather than increasing seed costs.

 

How do growers pay End Point Royalties?

 

If grain of the variety is delivered to selected grain buyers payment of the EPR will be automatically deducted from the grower payment.

 

If delivery is made to a grain buyer that does not automatically deduct the royalty then the grower is invoiced directly for the EPR. Grain that is consumed on farm for stockfeed is also EPR applicable. Grain that is retained for future planting however is exempt.

 

End Point Royalties are not restricted to PBR varieties and maybe used through a common law contract to generate a revenue stream on any variety.

 

Heritage Seeds role in End Point Royalties

 

Heritage Seeds currently manages the EPR for a wide range of field crop varieties. Our staff administer the end point royalty collection and reconciliation process on behalf of breeders. Grower declarations, grain delivery information and contract auditing are all used to ensure appropriate EPR's are being collected.

 

EPR data collection process

 

With the collaboration of the major EPR Managers and Plant Breeding Companies, an initiative has been put in place to improve the efficiency of the End Point Royalty (EPR) reporting process. The National Grower Register (NGR) is now responsible for the distribution of Harvest Declarations and collation of all data, on behalf of EPR Managers.

This season you will receive a single, combined Harvest Declaration Form, streamlining the entire collection process and reporting. This will allow growers to participate in a quick, easy and more secure production process; greatly cutting down the time required to complete the form.

 

The Harvest Declaration Form provides information by variety, including the volumes of grain produced, volumes sold to the grain traders/ end users (e.g. feedlots and millers); together with grain used on farm as stock feed, stored on farm (or in warehousing) for later sale, and also any grain retained for use as seed in the following sowing season.

 

Downlaod a copy of the Heritage Seeds Industry Seed Licence Agreement.

 

Frequently Asked Questions

 

How do I find out which varieties incur EPR? 

Where the buyer has not provided you with information on the EPR status of your particular variety in your paperwork, you may need to refer to your paddock or planting records. For a list of all the EPR varieties, visit www.varietycentral.com.au or contact Heritage Seeds Customer Service on 1800 112 400.

 

Who do I return my Harvest Declaration Form to? 

Your completed Harvest Declaration Form must be returned to NGR. NGR will collate your data and forward to Heritage Seeds for processing all information relating to Heritage Seeds growers and EPR varieties.

 

Do I need to write down all of my EPR varieties on the one form? 

Yes, you will need to write down and declare the harvest details for all EPR varieties grown for that season.

 

Why do I have to declare so much information on my form if I have already paid the EPR on the listed varieties? 

It is important that you record all Heritage Seeds EPR varieties grown for the current season on the Harvest Declaration Form, even if you have sold to a buyer who deducts EPR. This serves as a cross check for the Heritage Seeds EPR Administrator to ensure the buyers have paid correctly on your behalf. A list of participating Auto Deduct Traders is provided with the Harvest Declaration Form for your reference.

 

Note: You only need to list the sales of EPR varieties to those Grain Traders that have not auto deducted the applicable EPR. You will only be invoiced for sales that have been made to these Traders that have not auto deducted the EPR due.

 

Which varieties does Heritage Seeds collect for? 

Heritage Seeds collects the EPR’s (End Point Royalty) for a wide range of leading field crop varieties, the schedule below provides a list of the varieties and their respective agreements with the grain traders