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Charging for the use of plant varieties

Author

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  • Kingwell, Ross S.

Abstract

Private and many publicly funded plant breeding organisations charge farmers for use of varieties they develop. This article compares four alternative charging mechanisms and outlines responses to these alternatives by farmers and plant breeders. Risk‐averse farmers and breeders are shown to have opposite preferences for charging mechanisms. Results suggest profit‐based or royalties are preferred by farmers whereas breeders prefer area or tonnage‐based royalties. Risk‐sharing arrangements between both parties could lead to an overall preference for profit‐based or royalties. However, this finding is subject to important caveats and practical limitations.

Suggested Citation

  • Kingwell, Ross S., 2001. "Charging for the use of plant varieties," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 0(Issue 2), pages 1-15.
  • Handle: RePEc:ags:aareaj:117468
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    File URL: http://ageconsearch.umn.edu/record/117468/files/1467-8489.00144.pdf
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    References listed on IDEAS

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    1. Bardsley, Peter & Harris, Michael, 1987. "An Approach To The Econometric Estimation Of Attitudes To Risk In Agriculture," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 31(02), August.
    2. R.W. Fraser, 1991. "Price-Support Effects On Ec Producers," Journal of Agricultural Economics, Wiley Blackwell, vol. 42(1), pages 1-10.
    3. Fraser, Rob & Kingwell, Ross, 1997. "Can expected tax revenue be increased by an investment-preserving switch from ad valorem royalties to a resource rent tax?," Resources Policy, Elsevier, vol. 23(3), pages 103-108, September.
    4. Emerson, Craig & Lloyd, P J, 1983. "Improving Mineral Taxation Policy in Australia," The Economic Record, The Economic Society of Australia, vol. 59(166), pages 232-244, September.
    5. Fraser, Rob W., 1999. "An analysis of the Western Australian gold royalty," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 0(Issue 1), pages 1-16, March.
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    Cited by:

    1. Pluske, Johanna M., 2003. "Economics in plant breeding: A case focusing on doubled haploid technology," 2003 Conference (47th), February 12-14, 2003, Fremantle, Australia 58199, Australian Agricultural and Resource Economics Society.
    2. Beard, Rodney, 2008. "End-Point versus Point of Sale Levying of Plant Breeding Royalties: An Economic Analysis using Optimal Control Theory," MPRA Paper 7178, University Library of Munich, Germany.
    3. Wright, Brian D. & Pardey, Philip G. & Nottenburg, Carol & Koo, Bonwoo, 2007. "Agricultural Innovation: Investments and Incentives," Handbook of Agricultural Economics, Elsevier.

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