51 



Mr. Newlin. Yes, my name is Owen Newlin with Pioneer Hi- 

 Bred in Des Moines. I am retired, but I am still doing some con- 

 sulting work for them, Mr. Chairman. 



Mr. Volkmer, I am pleased to say in the hybrid seed corn indus- 

 try that is not an issue. 



Mr. Volkmer. I am not — I agree with that. 



Mr. Newlin. It has not occurred, and it is not something we need 

 to deal with with respect to this particular act. So the seed corn 

 companies, fortunately, and when they make contracts with the 

 grower have paid, and there have been no defaults, and the seed 

 that they are producing they are producing under a service con- 

 tract probably, and the seed belongs then to the company, and they 

 are obligated to pay it. 



Mr. Volkmer. What is wrong with having it in the law if it 

 doesn't hurt anything? 



Mr. Newlin. Excuse me? 



Mr. Volkmer. It doesn't hurt anything then to have it in the 

 law? 



Mr. Newlin. If there has been no problem 



Mr. Stenholm. But there has been a problem in other seed vari- 

 eties. 



Mr. Newlin. I am talking now specifically about seed corn. 



Mr. Stenholm. But I guess the question Mr. Volkmer is asking 

 is generic. 



Mr. Volkmer. I was just using the corn because that is mostly 

 what I understand. We do have some clover seed produced in my 

 district also, but most of it is corn. 



Mr. Schmidt. Let me answer that question because it is in re- 

 gard to grasses specifically that we are talking about here, and this 

 has come up within the American Seed Trade Association mem- 

 bers. We had several discussions on this because several members 

 were very unhappy with the way some of the contracts were writ- 

 ten in the grass seed and I believe clover seed business up in the 

 Northwest. That is where it started. 



And they are probably correct that many contracts — I have 

 talked to many people — have not been completed, and breeders 

 have walked out from these contracts. It is my personal opinion, an 

 issue that I think belongs in contract law. It belongs in a State con- 

 tract law that exists or should exist in regards to contracts and 

 payments legislation. 



It is really not a plant variety protection issue here, but I would 

 further submit that if a grower finds himself in that situation, he 

 is then, based on what we have put into the law now as an amend- 

 ment, allowed to sell that seed specifically for grasses and clover 

 as VNS since the breeder refused to take that seed. There is cer- 

 tainly a market for VNS as it has been in the past, and that 

 doesn't change. 



Mr. Clemons. I would like to tell you that that is a brilliant idea 

 except that VNS is not worth what that seed is by variety, and so 

 what you are doing is allowing that plant breeder to take that seed 

 at VNS prices. In other words, his idea is not to price down. He 

 cares not who it hurts, what it hurts as long as he can get it for 

 a lesser price. And I know. I can give you shining examples. 



Mr. Volkmer. Let's hear it. Give me one example. 



