CNA advocates adjustments to the current soybean royalty model

The Confederation of Agriculture and Livestock of Brazil (CNA) defended adjustments to the current royalty model in the country and pointed out operational problems that impact rural producers, during a public hearing held on Wednesday (8), in the Chamber of Deputies.

Tiago Pereira, technical advisor to the National Commission for Cereals, Fibers and Oilseeds of the CNA (National Confederation of Agriculture and Livestock), emphasized that the topic is relevant to the entity, since it has not caused isolated problems in the operation of the system, but rather problems of national scope.

"The CNA is not against innovation, nor against biotechnologies or the existence of royalties. In fact, we have always defended the producer's right to their own use of saved seeds, as it is a principle guaranteed in Brazilian legislation. The problem is that today there is uncertainty in the application of this right," he said. 

In his speech, Tiago stated that the Confederation created a Working Group to discuss the issue, following an increase in reports from soybean producers, mainly from Rio Grande do Sul, regarding the functioning of the current model and the lack of transparency, legal certainty, predictability, and contractual balance.

“The system is not user-friendly and doesn’t speak the producer’s language. The information is not freely accessible, and if an entity, such as the CNA, wants to see the system, it can’t, and that’s very serious. We only fulfill our role if the information is accessible, understandable, and used in a practical way,” he explained.

During the hearing, the technical advisor also highlighted that family farmers, even those not using soybeans with validated technology, are being forced to prove that they plant conventional cultivars. "In this case, the burden of proof has fallen on the producer."

Another point of concern for the CNA is the collection system and the price discount. Tiago Pereira clarified that in the case of producers who deliver soybeans with biotechnology, the discount is applied at the time of delivery, reducing the value of the product. Soybeans that would be worth R$ 100, for example, end up being worth 7,5% less. "The model has been confused with a commercial discount on the price of soybeans."

Finally, the Confederation representative reiterated that the organization does not deny biotechnology, but defends the need to restore transparency, predictability, proportionality, and legal certainty.

"The producer cannot bear the full burden of a model that he did not develop and did not participate in building. All issues of control and traceability fall on him."

The superintendent of the National Rural Learning Service (Senar) of Rio Grande do Sul, Eduardo Condorelli, also participated in the public hearing.