Why is seed so expensive? Has the ministry already taken or plans to take action to reduce the price difference between grain prices and seed prices? Will there be higher subsidies for qualification? – asks MP Jarosław Sachajko. Deputy Minister Michał Kołodziejczak replied.
MP Jarosław Sachajko (Kukiz’15) asked the Minister of Agriculture to take a position on the relationship between grain prices and seed prices.
– Currently, farmers selling grain, depending on its type and the region of Poland, receive amounts of PLN 680-850 per tonne. For comparison, seed prices are approximately PLN 2,500 per tonne. However, the subsidy for certified and elite seed material in the form of cereals, cereal and fodder mixtures in 2023 ranged from PLN 200 to 500 per hectare – the MP enumerates in the interpellation.
And he asks the Minister of Agriculture, among others: about why seed is so expensive, what is the reason for the discrepancy in grain prices compared to seed prices, whether the ministry has already taken or plans to take action to reduce the price difference between grain prices and seed prices and whether there will be higher subsidies to qualify?
Why is it so expensive?
Deputy Minister Michał Kołodziejczak noted in response to the interpellation that the higher price of cereal seed in relation to grain for consumption and feed results from the costs of producing such material. And he lists: in addition to the costs of sowing, harvesting, cultivation treatments, fertilizers and plant protection products borne by both seed producers and farmers conducting commercial crops, seed producers incur additional costs.
– The basic cost is the cost of seeds for sowing. The higher the degree of reproduction, the higher the quality requirements must be met by the seed material, which is reflected in its price. Moreover, in the case of seed material, not all collected seeds will reach the farmer – the material is sorted to reject fragments of grains, unfilled seeds or chaff. Another component is the cost of qualifying such material – field qualification is carried out at least twice, then the collected and cleaned material is assessed in the laboratory. Other costs affecting the final price of seed material include the costs of dressing or coating it, packaging, transport and distribution – informs the deputy minister.
What percentage of the seed price was the patent fee?
No. As Kołodziejczak reminds, in accordance with Art. 29 section 1 point 2 of the Industrial Property Law (Journal of Laws of 2023, item 1170), patents are not granted for plant varieties or animal breeds and purely biological methods of breeding plants or animals, as well as products obtained by such methods. Since plant varieties are not patented, the patent fee is not a component of the seed price.
Will there be higher surcharges?
– At the current stage of work, the Ministry is analyzing the situation. It should be emphasized that the possibility of increasing subsidies depends primarily on the availability of budget funds that could possibly be allocated for this purpose and the available limit of de minimis aid – noted Deputy Minister Kołodziejczak in response to MP Sachajka’s interpellation.
Answering the question whether the Ministry has already taken or plans to take action to reduce the price difference between grain prices and seed prices, the Deputy Minister of Agriculture stated that Ultimately, the price of seed is determined by the market. The ministry has nothing to do with it.
How much do farmers sow certified seed?
Kołodziejczak also provided in response what percentage of sowings in Poland were made using certified and elite seed material in 2014, 2015, 2022, 2023.
– It should be emphasized that the use of certified seed material (KMS) in individual species is different and depends on the specificity of a given species. A special case is sugar beet, where due to the biology of this species, technological processes in seed processing and contracting requirements, the use of KMS is estimated at 100%. Similarly, in species where hybrid varieties are mainly used, the use of KMS is 100% – e.g. in the case of maize and rapeseed – said the deputy minister.
And he added:
– In the case of cereals and potatoes, the estimated use of seed material in the sowing of these plants is lower – the table below shows estimates for selected species in the years in question.
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