Alliance to boost wheat competitiveness formed

By Larry Dreiling

Believing wheat research is at a crossroads in Kansas, six organizations have founded a non-profit business league to strengthen the competitiveness of the state's wheat industry.

Formation of the Kansas wheat Alliance (KWA) was finalized during the recent joint board meeting of the Kansas wheat Commission and the Kansas Association of wheat Growers, held at Hays.

Besides KWC and KAWG, other founding members of KWA are the Kansas Crop Improvement Association (KCIA), Kansas Seed Industry Association (KSIA), the Kansas State University Research Foundation (KSURF) and K-State Research & Extension.

KWA's main task will be to operate as a broker for the licensing and marketing of value-adding wheat technologies, according to Dr. Forrest Chumley, K-State associate director for research and technology transfer, who led the charge to put the alliance together.

"We've been talking about wheat variety release policies, licensing and the importance that this particular subject plays in determining access to new technology for wheat and the criticality it has for the future of the wheat industry in Kansas and elsewhere," Chumley said.

The reasons for the formation of the alliance date back more than 10 years, when many observers predicted that private sector releases would soon lead the way in all crops. Instead, many leading companies have abandoned their programs in wheat genetics and breeding, including Monsanto and Pioneer-DuPont, leaving public breeding programs to lead the wheat industry.

Supply chain rewards

According to a business plan mapped out by Chumley, there is hope the private sector will resume breeding programs, and KWA hopefully will put the industry on track for development and deployment of value-adding traits, with rewards across the entire value chain.

"One goal of KWA is deceptively simple, yet extremely important. That is, to make sure that Kansas wheat farmers continue to receive valuable new wheat varieties developed by the K-State wheat breeding program," the plan states.

"The costs of breeding new wheat varieties continue to increase, and public funds available to support the program have been level or declining for years. The risk is that decades of public investment in developing Kansas adapted wheat germplasm could become sidelined in the future. KWA offers a way for the wheat breeding program to receive additional support in proportion to the value it adds to the Kansas wheat industry."

KWA would function as a genetics wholesaler, Chumley said.

"It would receive genetics from an entity like K-State, then license them in appropriate ways to commercial seed companies and distribute these genetics out to farmers in a way you do a better job of trait and variety stewardship," Chumley said. "It would do it in a new way, a way that would generate new revenues in wheat research and education."

Colorado a model

The new entity would function in much the same way as the Colorado wheat Research Foundation (CRWF), Chumley said. In that system, CRWF acquires ownership of Colorado State University produced varieties and applies for plant variety protection. From there, CWRF coordinates distribution of foundation and registered seed to eligible certified seed growers while the Colorado Seed Growers Association provides seed certification and marketing services to its participating members.

CWRF collects fees and royalties (generally 30 to 60 cents per bushel) on certified seed sold by certified growers of wheat varieties included in the Colorado wheat Cultivar Program. After deducting its actual expenses, CWRF returns the remaining funds to CSU. The majority of those funds support wheat-related research programs at CSU and provide royalties to those researchers who developed the new protected varieties.

In the case of KWA, decisions about new wheat variety releases will continue to be made by the Kansas Variety Release Committee, as they have been made in the past. When new varieties are released, they will be managed like other intellectual property created by K-State scientists. That is, the varieties will be assigned to KSURF.

PVP permit role

KSURF will then offer the varieties for licensing by KWA. Although KWA will in-license varieties mainly from KSURF, KWA could in-license varieties from other providers of wheat genetics. It is anticipated that K-State will offer KWA first rights of refusal on an exclusive license to all future K-State wheat varieties. Responsibility for in-licensing will reside with the KWA Board of Directors.

"As necessary and appropriate, KWA will take responsibility for seeking protection of in-licensed varieties under the Plant Variety Protection Act. A role for KWA in seeking patent protection for some technologies may be appropriate. KWA will develop the competency for performing this function and managing PVP certificates," the plan states.

"It is anticipated that this will be a welcome service to KSU and KSURF, and perhaps to some other genetics providers. K-State wheat breeders will continue to play a key role in providing necessary scientific data and other information for completion of the PVP certificate."

KWA will negotiate terms for commercialization of all wheat varieties received from KSURF or other genetics providers. Such terms will include payment of royalties or other license fees to KSURF or other providers of genetics and technology. KWA will negotiate commercial licenses with the providers of any proprietary traits contained by in-licensed varieties. A first example of a commercial license that KWA will need to negotiate is BASF's Clearfield technology.

Membership levels

KWA, meanwhile, will be a membership organization. In addition to the six founding members, individuals, private corporations and public organizations with an interest in promoting the goals of KWA would be encouraged to become members.

Anticipated startup memberships would start with the six founding members contributing $10,000 and wend its way to $100 individual memberships with other levels of funding in between. The six founding members and a person representing all the other members would form a board of directors and hire one staffer, to be called the president.

"That person's job would be to negotiate the licenses, to monitor the provisions of the licenses," Chumley said. "Collectively the alliance would cover its debts and any revenue would become the Kansas wheat Research and Education Fund and the board would make decisions on how to invest that money in wheat research and education programs."

Tom Morton, a KWC member who was part of a group that examined the formation of KWA said the alliance is critical to continuing wheat research in the state.

"People will not invest in something when it's given away. The alliance will make certain these new technologies will be protected."

Chumley agreed.

"Wheat is definitely at a crossroads and how we manage our crop genetics is going to be one of the key factors in deciding how we are going to get through this point in our history as an industry and it's critical as we move forward."

Larry Dreiling can be reached by phone at 785-628-1117 or by e-mail at ldreiling@aol.com.

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6/11/07

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Date: 6/7/07

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