(a) a person engaged in farming activities legitimately obtains propagating material of a plant variety covered by PBR either by purchase or by previous operation of this section, for use in such activities; and
(b) the plant variety is not included within a taxon declared under subsection (2) to be a taxon to which this subsection does not apply; and
(c) the person subsequently harvests further propagating material from plants grown from that first-mentioned propagating material;
the PBR is not infringed by:
(d) the conditioning of so much of that further propagating material as is required for the person's use for reproductive purposes; or
(e) the reproduction of that further propagating material.
(2) The regulations may declare a particular taxon to be a taxon to which subsection (1) does not apply.