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purposes, on their own holdings, the product of the harvest 



for which they have obtained by planting, on their own 



holdings, the protected variety or an essentially derived 



variety. "Holdings" are considered to be land-owned, 



rented, or leased by a farmer. 



It should be noted, that the farm-saved seed provision in 

 the new Convention does not permit the selling of farm-saved 

 seed. In order to be in full compliance with the 

 Convention, S.1406 contains a provision that stipulates that 

 sales of protected varieties of seed are dependent on 

 permission granted by the owner of the protected variety. 



It has become increasingly apparent that of all the issues 

 before this subcommittee, the most widely discussed 

 component of H.R.2927 has centered on this provision. The 

 sale of farm-saved seed has led to the abandonment of 

 research programs on certain crops by seed companies because 

 of an inability to compete with their own varieties. Time 

 considerations preclude me from going into graphic detail of 

 the casualties resulting from farm 6aved sales. This 

 subcommittee, however, will be receiving and incorporating 

 into the official record documented cases of seed companies, 

 large and small alike that have restructured, curtailed, and 

 in the most drastic of examples, abandoned major research 

 programs. All of these actions illustrate a painful, but ' 

 necessary recognition of seed companies of an inability to 

 compete with farmers capitalizing off of substantial 

 financial, human, and research commitments. 



A surprising few believe that a variety granted a PVP 

 certificate is just that — a PVP certificate. The seed 

 industry, however, views the PVP certificate as a "patent 

 like" license that insures protection and a recognition of 

 development worthy of expected rights and privilege. The 

 NCCPB fully supports the tradition and spirit of the crop 

 exemption. He do not, however, believe that- breeders, 

 whether public or private, individual or university, has to 

 expect or accept anything less than full protection. The 

 UPOV Convention permits sales contingent on the permission 

 of the owner of the protected variety. This standard is in 

 keeping with the intent of the PVP certificate and is most 

 importantly, fair and consistent to those who assume the 

 risk and investment. 4 



While H.R.2927 will provide this much needed protection to 

 the developer, the benefit extends to the farmer. Farmers 

 need to know that the industry that provides them with the 

 single most important component in agriculture is firmly 

 committed to bringing to the market a steady stream of 

 improved and enhanced seed. Without newer and improved 

 varieties, American farmers cannot compete with our 

 competitors overseas. If our, competitors -recognize the 

 value and necessity of protecting breeder's rights and we. 



