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Other studies cited by the World Bank Discussion paper, mentioned 

 earlier in this statement, suggest that privately developed varieties are 

 more productive than their publicly bred competitors. Our own study 

 supports the World Bank's conclusion that private sector research 

 increases crop yield potential. As you can see from the attached chart on 

 "Research & Development Expenditures By Crop," private company 

 investment in research on varietal crops has increased substantially 

 since the enactment of PVPA in 1970. 



Yields have also increased in those crops at a faster pace since 1970. 

 Using USDA yield data going back to 1960, we have prepared two charts, 

 which are also attached: U.S. Soybean Yields and U.S. Wheat Yields. 

 During the 1960s, the soybean yield trend was relatively flat. Since the 

 enactment of PVPA in 1970, the trend is toward higher soybean yields. 

 While not as dramatic, wheat yields have also increased. 



Induced by the benefits of plant variety protection, other countries are 

 also making significant strides in breeding of self-pollinated crops such 

 as soybeans. In Argentina, which is a competitor of the United States in 

 the international commodities market, plant variety protection has 

 stimulated investment in plant breeding research and opened that 

 market to introduction of varieties developed elsewhere. The result is 

 that Argentina will challenge us more in the future for a share of the 

 global market, not only in grain sales, but in research investment as well. 



Our best estimates are that the volume of brown-bag sales in the United 

 States is at least one to two times the volume of seed company sales. 

 When given a choice between selling to the U.S. market and selling to a 

 foreign market one-half or one-third the size, but in which brown-bag 

 sales are not allowed, the decision is not difficult. The resulting volume 

 of sales will be the same in both markets, but a seed company can get a 

 better price and make a better profit in a market where it does not have 

 to face unfair competition from brown-bag seed. 



American farmers cannot remain competitive when seed research 

 investment and seed research results are being funneled into markets in 

 other countries. Stated even more strongly, American farmers have high 

 costs for labor, land, and other inputs, and their foreign competitors are 

 often more highly subsidized. The best way American farmers can stay 

 ahead of their foreign competition is by continued heavy investment in • 

 the research needed to give them a technological lead. The way to 

 stimulate investment in research is not through continued 

 encouragement of farmer-to-farmer sales, but by supporting the rights of 

 seed companies to be the only sellers of the products their research has 



