End Point Royalties

What are End Point Royalties?

End Point Royalties are a type of levy on the total grain produced from the seed and replaces the seed royalty.

Traditionally royalties on most crops were collected at the point of seed sale as part of the seed cost. Breeders are now electing to apply End Point Royalties on newly released varieties as a more equitable mechanism for generating a revenue stream back to the breeder.

Growers are responsible for the payment of the End Point Royalty and are also responsible for keeping records regarding the tonnage of EPR grain either sold or retained. 

What are the benefits of End Point Royalties?

Traditional seed royalties increase the initial purchase price of the sowing seed, however End Point Royalties are calculated on the resultant grain produced from the purchased seed. Royalties based on production rather than seed purchase are considered the most equitable means of ensuring continued investment in plant breeding.

The Australian grain industry needs new varieties to remain competitive in world markets and the development of improved varieties through breeding is vital to future success. The End Point Royalty system a user pays system that enables the grower to produce the variety and contribute proportionately based on its success rather than increasing seed costs.

How do growers pay End Point Royalties?

If grain of the variety is delivered to selected grain buyers payment of the EPR will be automatically deducted from the grower payment.

If delivery is made to a grain buyer that does not automatically deduct the royalty then the grower is invoiced directly for the EPR. Grain that is consumed on farm for stockfeed is also EPR applicable. Grain that is retained for future planting however is exempt.

End Point Royalties are not restricted to PBR varieties and maybe used through a common law contract to generate a revenue stream on any variety.

Seedmarks role in End Point Royalties

Seedmark currently manages the EPR for a wide range of field crop varieties.  Our staff administer the end point royalty collection and reconciliation process on behalf of breeders.  Grower declarations, grain delivery information and contract auditing are all used to ensure appropriate EPR's are being collected.

What is the e.EPR system all about?

e.EPR is an online solution for the End Point Royalty (EPR) management system of Seedmark EPR varieties. It eliminates the need to fill in and sign a Seed License Agreement each time you purchase a Seedmark EPR variety. All growers of Seedmark EPR varieties must have an e.EPR number and you only need to register once.

How do I register for an e.EPR Grower Code?

e.EPR registration is simple; either ring Seedmark on 1800 112 400 or when purchasing a Seedmark EPR variety, ask your re-seller to register your details on your behalf. If you have a NGR number, please also provide this at the time. It is essential that you have read and agreed to the Terms and Conditions of the Seed License and Royalty Agreement (available from your re-seller or click here).  Once your details have been processed by the re-seller, they can advise you what your Grower Code is immediately. 

NEW EPR data collection process for the 2011 / 2012 Season

With the collaboration of the major EPR Managers and Plant Breeding Companies, an initiative has been put in place to improve the efficiency of the End Point Royalty (EPR) reporting process. The National Grower Register (NGR) is now responsible for the distribution of the 2011/2012 Harvest Declaration and collation of all data, on behalf of EPR Managers.

This season you will receive a single, combined Harvest Declaration Form, streamlining the entire collection process and reporting. This will allow growers to participate in a quick, easy and more secure production process; greatly cutting down the time required to complete the form.

The Harvest Declaration Form provides information by variety, including the volumes of grain produced, volumes sold to the grain traders/ end users (e.g. feedlots and millers); together with grain used on farm as stock feed, stored on farm (or in warehousing) for later sale, and also any grain retained for use as seed in the following sowing season.

Frequently Asked Questions

How do I find out which varieties incur EPR?

Where the buyer has not provided you with information on the EPR status of your particular variety in your paperwork, you may need to refer to your paddock or planting records. For a list of all the EPR varieties, visit www.varietycentral.com.au or contact Seedmark Customer Service on 1800 112 400.

Who do I return my Harvest Declaration Form to? 

Your completed Harvest Declaration Form for the 2011/2012 season must be returned to NGR. NGR will collate your data and forward to Seedmark for processing all information relating to Seedmark’s growers and EPR varieties.

Do I need to write down all of my EPR varieties on the one form? 

Yes, you will need to write down and declare the harvest details for all EPR varieties grown for the 2011/2012 season.  

Why do I have to declare so much information on my form if I have already paid the EPR on the listed varieties?

It is important that you record all Seedmark EPR varieties grown for the 2011/2012 season on the Harvest Declaration Form, even if you have sold to a buyer who deducts EPR.  This serves as a cross check for the Seedmark EPR Administrator to ensure the buyers have paid correctly on your behalf.  A list of participating Auto Deduct Traders is provided with the Harvest Declaration Form for your reference.

A significant change from last year is that you only need to list the sales of EPR varieties to those Grain Traders that have not auto deducted the applicable EPR.  You will only be invoiced for sales that have been made to these Traders that have not auto deducted the EPR due.

Which varieties does Seedmark collect for?

Seedmark collects the EPR’s (End Point Royalty) for a wide range of leading field crop varieties, the schedule below provides a list of the varieties and their respective agreements with the grain traders.

Seedmark wish to advise that this list is subject to change without any prior notification and is finalised by law.

Seedmark wish to advise that this list is subject to change without any prior notification and is finalised by law. 

Related Links

EPR seed licence and royalty agreement (PDF 148kb)Australia's End Point Royalty Collection System giving the Australian Grain Industry a Competitive Edge (PDF 57kb)

The Variety Central Website is now up and running!

Variety Central is an information source for Australian grain growers and industry, covering plant breeding, seed commercialization, varieties, royalties and other relevant information. It is a joint initiative, developed by the EPR steering committee. Click here to view the website.