Over the last few years, however, the demand for UCB#1 seed has far outpaced the supply, says Coleman. As a result, growers typically receive only a fraction of the amount of the seed they order from FPS. Coleman says this shortfall has contributed to the increased number of unlicensed growers.

Last year, Coleman paid $250,000 for the UCB#1 seed purchased from FPS.

“It’s not fair for growers like me who pay for this UCB#1 seed or budwood when others don’t. And, it’s not fair to the industry.”

Coleman can understand why some growers may be tempted to avoid paying the licensing fee. However with the industry’s rapid growth in recent years, some newer growers may not be aware of the licensing fee rules.

“One grower even asked me if the fee for budwood was a requirement or a donation,” says Coleman.

This is why Coleman and a small group of other pistachio industry leaders are proposing a California marketing agreement designed to encourage more growers to pay the licensing fees to help fund UC’s development of improved varieties.

Coleman says, “A marketing agreement is a way to provide legal standing for this proposed program.”

The CPRB, for example, is a California state marketing order, authorized in December 2007 through a grower referendum. The order operates under the oversight of the California Department of Food and Agriculture.

The CPRB uses mandatory assessments, paid by pistachio growers, to fund research on pistachio propagation, production, harvesting, handling, and preparation for market, and to provide educational opportunities and materials for pistachio growers.

The marketing agreement Coleman and his colleagues propose would be similar to current marketing orders for California’s citrus, grape, and strawberry industries. These orders help control quality and disease resistance of plant parent material except that the agreements are voluntary but binding on the signatories.

Pistachio nurseries and commercial budders participating in the proposed pistachio marketing order would agree to use only UC-licensed rootstock and budwood and budwood with the exception of their own proprietary varieties.

“I could see members of this agreement assessing themselves a relatively small fee to pay for reviewing the records of each other to check for compliance with the UC licensing program,” Coleman says.

A listing of these licensed growers and budders would be available to the public.

“This way any grower buying foundation material from an unlicensed producer would risk buying seed, rootstock, or budwood that might not meet the quality and disease resistance standards of those developed by the University of California,” Coleman explains.

His group plans to put the proposed marketing agreement to a vote of pistachio nurseries and budders this fall.