Since their introduction in 1996, End Point Royalties (EPRs) have sparked debate. Many see them as cutting into farm gate profits while benefiting seed companies. But do they truly fund future variety development and research?
From RAGT’s perspective, EPRs are vital for developing high-performance varieties suited to Australian conditions.
Many of our wheat, barley, and canola have EPRs that support their trialling and adaptation. Our acquisition of our Longerenong Research Centre and specific white wheat breeding program in 2023 underscores our commitment to improving productivity for Australian growers.
Why the Focus on EPRs?
Many growers see EPRs as a financial burden at harvest rather than an investment in future yield improvements. However, the real cost often lies in the upfront expense of establishing a canola crop—especially for hybrids with inbred herbicide tolerance technology that have technology fees associated with them.
While EPRs are tied to actual yields, technology fees are based on potential outcomes. Choosing an expensive GM canola variety can push seed costs above $100/ha, affecting cash flow and increasing risk. In contrast, non-GM canola with traditional technology can nearly halve seed costs per hectare when agronomic circumstances provide the flexibility for it.
This season, RAGT’s non-GM hybrid TTs cost just over $60/ha, and include a free seed treatment, deferred payments, and an establishment guarantee under the SCORE MORE 2024-25 promotion. They do have a success fee (EPR) associated with them, but it’s often a lower financial burden. Plus, deferring costs until harvest preserves cash flow for other inputs during the season.
Recent data shows RAGT Hybrid TT yields are competitive with pricier technologies, making them a strong choice when assessed on cost per hectare and additional incentives.
Which fees cost more?
For a clearer comparison, refer to the following table:
The table highlights how non-GM canola with TT technology can be a strategic investment. It also illustrates how EPRs help avoid steep upfront costs while maintaining harvest profitability. Choosing technology wisely at the outset can impact returns and risk.
In this scenario, yields in excess of 2.81 mt/ha is where the technologies breakeven and the model inverts, however return on investment continues to be stronger as a multiple with the success fee versus technology fee option. Considering that in the majority of cases (see NVT trial tables above), the average canola yield per hectare in medium to high rainfall areas is less than than 2.81 mt/ha, adopting a success fee over technology fee strategy holds a lot of merit.
2024-25 Considerations
With climatic challenges ahead, investing heavily in GM technology means absorbing risk upfront and adopting a lower Return on Investment. A more cautious approach- opting for a TT variety with lower upfront costs and an EPR- may be a safer bet.
For seed selection advice, contact an RAGT Territory Business Manager to discuss the best options for your region and needs.
If you’d like to know more about RAGT’s hybrid canola range, contact your local RASGT Territory Business Manager
NB: This article does not factor in herbicide, insecticide, fungicide, fertiliser, or harvesting costs or specific in crop agronomic requirments Growers should seek independent agronomic and financial advice before making key farming decisions. While every effort has been made to ensure accuracy, RAGT is not responsible for purchasing decisions based on this information