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Mr. Chairman and Members of the Subcommittee, Pioneer Hi-Bred 

 International, Inc. commends you for holding this hearing on the 

 proposed amendments to the Plant Variety Protection (PVP) Act. We also 

 commend Congressmen de la Garza and Roberts for introducing this 

 much needed legislation. Pioneer is pleased to provide the Subcommittee 

 with its perspective on the need to update the PVP Act and offer our 

 suggestions to strengthen the legislation that has been introduced. 



Let me begin by telling you a little bit about Pioneer. 



Pioneer was founded in 1926 by Henry A. Wallace and a few of his 

 colleagues. He later went on to become U.S. Secretary of Agriculture and 

 Vice President. Today, Pioneer is one of the world's largest independent 

 agricultural genetic supply companies, doing business in more than 60 

 countries. 



Pioneer breeds, produces, markets and sells hybrid corn, hybrid 

 sorghum and hybrid sunflower seed, and pure-line varieties of soybean, 

 soft red winter wheat and alfalfa seed. We also market inoculants made 

 from naturally occurring organisms for crops and livestock, and we offer 

 a full line of business management services for farmers. Sales of all 

 products during the fiscal year that ended August 31, 1993, totaled over 

 $1.4 billion. 



Our research investment during fiscal year 1992-93 was over $105 

 million, which was over 7 percent of our sales. Every year we make this 

 research investment so we can continue to offer farmers the improved 

 genetics they need to increase their crop yields and to make their crops 

 more resistant to drought, diseases and insects. 



Pioneer's research is aimed at increasing the efficiency and profitability of 

 farmers. We have done that in the past, and we will continue to do that 

 in the future. However, we need compensation for our research 

 investment. 



Pioneer cannot make the research investment needed to provide farmers 

 with those improved genetic products unless we are paid for our effort 

 and receive a return on that research investment. The current Plant 

 Variety Protection Act does not always allow that to happen. 



The Plant Variety Protection Act is a cornerstone of the legal protection 

 provided to U.S. plant breeders. Strong protection is necessary to 

 encourage the level of research investment required to ensure a steady 

 stream of improved varieties. These improved varieties are essential for 

 U.S. farmers to remain competitive in world agricultural markets. 



