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5 

 the privilege of farmers to sell saved seed protected under 

 present law would not be diminished. Rather, sale of saved seed 

 would be subject to authorization by the breeder only for 

 varieties receiving protection after the date of enactment of 

 H.R. 2927. This change in the farmer's exemption is necessary to 

 comply with the 1991 Convention. 



I want to make it clear that this Administration wants to 

 continue helping farmers. However, beyond the original purchase 

 price of the seed, no payment is now made to the companies that 

 developed the varieties by those selling saved seed. While this 

 practice has been possible under the currant PVPA, it is not 

 compatible with the 1991 Act of the UPOV Convention. 



Prohibiting sales of saved seed for replanting is not, 

 however, simply a matter of protecting seed companies. Without 

 encouragement for investment in the development of new varieties, 

 the whole farming community will gradually be put at a 

 disadvantage. Fewer plant varieties with improved 

 characteristics will be developed, leaving farmers to plant 

 outmoded varieties which give lower yields and which succumb to 

 new strains of pests and diseases. Farmers in other countries 

 where investment in new varieties has continued will enjoy a 

 clear competitive advantage. 



Another major change to be made by these amendments is the 

 establishment of a category of "essentially derived varieties". 

 This change, which would be applicable only to varieties 

 protected under S. 1406 and would not apply retroactively, would 



