1. Public sector funds varietal development and agricultural extension

In even the most mature seed systems, the public sector plays a vital role in varietal development and agricultural extension. This is done sustainably through established and reliable funding sources such as recurring funds from government research institutions and universities, as well as competitive grants. Key operating costs funded by the public sector include researcher salaries and benefits, consumables, and facility upkeep such as office space, fields, labs, and acclimatized storage.

India rice example
In India, dedicated and reliable public sector funding exists for varietal development, commercially valued research, and seed production. Continuous, centrally coordinated, locally researched varietal development is conducted by the National Agriculture Research System (NARS)-ICAR, one of the world’s most well-funded ($890 million annually to ICAR) and trained agriculture research systems (approximately 7,000 scientists) in the world.

2. Breeding programs focus on the needs of farmers

In mature systems, breeding teams work closely with growers, seed companies, and industry to develop varieties with a differentiated value over saved seed, thereby increasing growers’ willingness to pay for improved seed. The commercial success of new varieties and breeding program longevity rely on continuous input and collaboration from industry and growers.

Mature breeding programs have deep empathy for farmers’ needs and evaluate thousands of lines annually for the agronomic and grain traits that matter most.

Farmer participatory breeding strengthens the relationship between breeders and growers, stretches public sector resources, hastens varietal speed to market, enables bulking prior to release, and stimulates the adoption of new varieties. The public sector leverages private sector feedback from on-field performance trials and grain testing to increase the efficiency of its resource allocation and to improve the commercial adoption of new varieties.

Brazil banana example
Embrapa’s participatory breeding program is a key part of its research and development program. Embrapa provides approximately 30 farmers across two key banana regions with region-specific hybrids to evaluate for two years. After this testing period, farmers share feedback with Embrapa on both agronomic characteristics and market/end user receptiveness.

3. Public sector organizations coordinate early generation seed production

Public sector organizations assume the responsibility and risk of parental seed demand planning and production. Attentive cost management and pre-ordering of EGS by commercial seed producers supports the organization’s ability to recover its operating costs.

Idaho potato example
The Nuclear Seed Potato Program (NSPP) operates on a yearly production planning cycle to ensure that supply meets demand. Growers typically place orders in December to receive mini-tubers or plantlets by the following fall. The program does not assume surplus demand, which encourages growers to plan for their planting needs well in advance. Instead of binding contracts, growers make informal agreements for picking up and paying for seed. Self-regulation in adhering to the informal agreements is made effective on the basis of grower reputation being dependent on following through on ordering commitments.

4. Stakeholders benefit from strong institutional and interpersonal linkages

Mature EGS systems are strengthened by long-standing interpersonal relationships and close geographic proximity of seed system actors, which enables a well-coordinated seed production planning process and helps reduce transaction costs.

Saskatchewan pulses example
Located in the heart of Saskatchewan’s main pulse-growing region, the University of Saskatchewan acts as a central hub for important actors in this EGS system. The main organization involved in new variety development and testing (Crop Development Centre), the provincial commodity association (Saskatchewan Pulse Growers), the key bridging organizations (Ag-West Bio and Food Centre), and national research organizations (The National Research Council, Agri-Food Canada) are all either on the university campus or within a 15-minute drive. A strong level of trust exists between these key system actors, which is aided by their close proximity and ability to meet in person, both formally and informally.

5. Quality assurance system adds value for farmers

The seed quality assurance system is fit-for-purpose, industry-respected, adequately resourced, efficiently managed, and adds more value to farmers than the costs it imposes. In mature systems, certification agencies are viewed as partners entrusted to be the custodian of the seed sector.

Michigan dry bean example
Production quality has differentiated Michigan farmers’ black beans and is a reason why they command a price premium in key export markets (e.g., Mexico). Michigan Crop Improvement Association (MCIA)’s strict seed certification process assures growers that the certified seed they purchase and the plant is true-to-type and disease-free. MCIA is unreserved in rejecting fields that do not meet the state’s seed certification requirements, as evidenced by the ~30% rejection rate of fields evaluated for certification.

6. Private sector funding motivates research and seed production activities

In mature seed systems, private and public sector stakeholders are jointly committed to funding the operations that enable varietal development, research programs, and bridging organizations. This level of alignment increases farmer profitability through methods such as sponsored grants and check-off fund allocations.

Arkansas rice example
Arkansas rice farmers’ desire for quality seed supply and improved varieties predates the required check-off programs started in 1985. Prior to 1985, growers voluntarily contributed to funds directed toward industry promotion and later, specifically toward the research of new rice varieties. Growers’ willingness to pay out of their own profits factored into the success of the breeding program and overall rice industry growth. Furthermore, robust grower interest in serving in leadership and committee roles of two voluntary funding groups has been central to continued success. These groups eventually merged to become the AR Rice Research and Promotion Board, which is still in place today.