In South Africa, the Marketing of Agricultural Products Act (Act 47 of1996) provides for the application of a statutory levy. This gives substance to a levy/royalty within a legal framework and has the following benefits:

• It is a self-regulating system
• All grain of a specific crop is levied at the first point of sale
• All growers pay the same levy
• Farmers and breeders share the risk
• The royalty income is directly linked to the variety’s level of performance
• Should farmer income be low due to drought etc., levies are also lower.

The Marketing of Agricultural Products Act (Act 47 of1996) also provides strict guidelines as to what amount a levy can be, what the maximum rate of the administration can be, and for what period a levy can be imposed.