The 4-P Funding Model

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(Photo courtesy Harpinder S. Randhawa)

Taking a look at one very successful Alberta-based initiative.

The 4-P model (public/private/producer partnership) for crop R&D involves funding contributions from government, private companies and producers. This type of initiative is seen as an effective way to pool resources and ensure the growth of total overall investment in variety development in Canada – and according to those directly involved, the 4-P involving Agriculture and Agri-food Canada (AAFC), Canterra Seeds and the Alberta Wheat Commission (AWC) is no exception.

This particular 4-P started in 2014 and runs through to the end of 2018, but Tom Steve reports that discussions about renewal will begin in early 2018.

Tom Steve

“It’s the main CPSR (Canada Prairie Spring Red) wheat breeding program in Western Canada,” says Steve, general manager at the AWC. “Three-quarters of this wheat class is grown in Alberta as it’s well-suited to the climate. It goes into both feed and milling markets.”

The partnership’s main benefit for producers in his view is the continuation of a program that was in danger of being shut down. The main CPSR breeder at AAFC in Winnipeg had retired and the program was in jeopardy, he recalls. AAFC put out a request for partnership proposals in early 2014, and Canterra Seeds submitted one that was accepted in March. AAFC then held discussions with multiple grower groups that had expressed potential interest in participating, and by mid-2014, notes Canterra Seeds president and CEO David Hansen, AWC had joined the partnership with the full support of his company. All three parties are contributing $3.4 million in cash and in-kind items over the five-year timeline.

“It’s overall a great way to develop new varieties with higher yields and better disease resistance,” Steve notes. “Alberta farmers, through the AWC, will get a share of royalties on seed sales, likely starting with a variety called AAC Crossfield in the fall of 2018, and those royalties will go back into further research investments.”

Two other lines are already also approved for registration, and Hansen says there are many new candidates in the variety registration trials “that are showing amazing promise.”

Harpinder S. Randhawa

Dr. Harpinder Singh Randhawa, based at AAFC Lethbridge, is the partnership’s breeder behind these varieties. He notes the 4-P model is not just about funding, but about providing other resources critical to ensuring a strong breeding program moving forward.

“With AAFC sites that have closed, for example the Cereal Research Centre in Winnipeg around 2012, and also the downsizing of satellite research sites, there really was no room for my breeding work,” he explains. “Through this partnership, I have access to trial sites through Canterra and this is very important. Money is certainly needed for variety development, but you also need other resources. To have the increased research capacity over a greater geographic area in Saskatchewan, Manitoba and Alberta greatly benefits the research. Canterra is also providing evaluation work.”

Canterra Seeds is also providing insight into commercial opportunities, says Hansen, as well as the ability to use different production and commercialization models based on what is best for a particular variety to maximize its distribution and value. In addition, Canterra is providing links to end-users and an understanding of their requirements in Canada and the U.S. in order to help guide development of new varieties in the program.

Beyond all this, Steve lists another benefit of this arrangement for producers: AWC’s close relationship with Dr. Randhawa. “It’s a great exchange of information,” he says.

Hansen agrees. “The relationship among the three partners continues to grow,” he notes. “We are well-aligned, and with an effective governance model in place we are able to work well towards the objectives of the agreement. Partnerships make sense when you are able to bring various elements required to the table to further the advancement, versus everyone trying to do things on their own. Wheat is a very complex crop that requires a significant investment in order for it to remain a competitive option for the farmer. This may not apply for all crops, but for wheat and durum, this does seem to be true, and so the arrangement definitely makes sense.”

David Hansen

Hansen adds that Canterra Seeds’ interest in continuing the three-way relationship is strong, and that it fully intends to explore new opportunities, including perhaps the involvement of Limagrain Cereals Research Canada if it makes sense. Limagrain and Canterra Seeds have a partnership, and this relationship could provide opportunity for expanded future collaboration, including germplasm and breeding tools.

For his part, Steve notes that for AWC, the 4-P model for breeding Canada Prairie Spring Red wheat has been very successful and he looks forward to discussions on a renewal.

“We really like this model, and with it, we have the resources in place for a world-class program,” he says. “We look forward to more varieties over the next few years.”

Harpinder adds that from his perspective, it would be wonderful to continue on, and he looks forward to sitting down and discussing it early next year.

“It’s been wonderful,” he says, “to work both with Canterra and also the Alberta Wheat Commission.”

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