Summary

In modern agriculture, farmers often opt for buying seeds each year from companies, instead of getting seeds out of their previous crops. This is often simpler and cheaper. In the case of patented GMO organisms, this is often mandatory (makes tracking the royalties due on the use of such plants easier).

Growing seeds for eventual planting benefits from year-round growing seasons, and from permissive regulatory environment. Tariffs on seeds are low, especially compared to general agricultural tariffs, so it is a viable export business.

Why do this in Próspera?

Próspera lets use Canada/US regulations (which are most GMO-friendly) and Honduras has a year-round growing season, which neither of these countries have except for Hawaii. Hawaii has had multiple attempts at banning the growing of GMO plants, which, if it happens at the state level, will create an opportunity for others to take up that production.

Downsides

• South America in general is already decently GMO-friendly, so the benefits of Próspera’s choose-your-own-rules approach is limited.
• Honduras and Roatán are very hilly, and this limits the contiguous flat acreage that can be farmed efficiently.
• Adding new empty farmland to Próspera won’t be easy given the new government’s relative hostility.

Open questions

Do the IP-owners even outsource their seed growing to third parties?

Growing someone else’s seeds would be a much easier way to get into the market than having to develop new variants from day one. AFAICT they normally don’t but this may just be a tendency rather than a hard rule.