3CS | Grower survey highlights pressure to revisit GRDC levy

A grower survey has been put forward as the basis for a proposal to review levy settings applied to the Grains Research and Development Corporation (GRDC), as reserves approach $1 billion.

Speaking on 3CS radio, Andrew Weidemann said Grain Producers Australia (GPA) submitted findings from an independent survey of growers to the Federal Agriculture Minister to test appetite for change.

“There was a 76% majority that wanted to see a change in the current levy rate because we are accumulating quite large cash reserves… which gets us pretty close to a billion dollars in total equity,” he said.

Mr Weidemann said while the survey included just under 400 participants and was a “small snapshot”, it reflected growing concern about the scale of reserves being built.

He pointed to ongoing increases in grain production as a key driver, with more land shifting into cropping and higher output continuing to add to levy receipts.

“We’re continuing to grow crops… and we’re seeing a lot more paddock being sown down,” he said.

The levy currently sits at just over one per cent of farm gate returns, with funding directed toward research, development, biosecurity and residue programs.

Mr Weidemann said the proposal explored reducing the levy rate in response to the pace of reserve growth.

“We indicated that reducing the levy… would have been within realms at the moment because of the acceleration we’ve seen in the last four or five years,” he said.

With production expected to remain strong and reserves continuing to build, the question of whether levy settings remain aligned with current industry conditions is likely to remain under discussion.

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