The ability to plant a variety with an End Point Royalty (EPR) associated provides the grower with a number of important benefits, including increased flexibility and support of future breeding programs.
As an EPR is charged on a production basis, growers need only pay for the technology based on the performance of the variety. This means plant breeders are rewarded for producing the most successful varieties and encourages further innovation within the breeding industry. By continuing to produce the best varieties, plant breeders secure their return on investment and the grains industry continues to benefit from increased productivity.
EPRs also provide the grower with a risk management tool in relation to any adverse seasonal conditions experienced. In cases where seasonal conditions are detrimental to performance of a crop with an associated EPR, the royalty payable will be lower as a result of lower production. Royalties payable on production remove a degree of risk for growers, especially with climate conditions that have a negative impact on crop productivity.