ABC WA COUNTRY HOUR | Levy change rejected as GRDC reserves continue to build

Debate around the grains levy system has sharpened this week following confirmation the Federal Agriculture Minister has rejected a proposal to adjust the Grains Research and Development Corporation (GRDC) levy.

The issue was raised during Senate Estimates, where Slade Brockman questioned whether growing GRDC reserves, confirmed at more than $728 million and expected to rise further, should trigger a reconsideration of levy settings paid by growers.

Under the current system, levy changes are proposed by representative organisations including Grain Producers Australia and GrainGrowers Limited, with the final decision resting with the Minister.

GPA has put forward a proposal to reduce the R&D component of the levy, arguing settings should reflect current reserve levels.

WA Farmers Grains Council President Mark Fowler spoke to ABC WA Country Hour and said the Minister rejected that proposal, citing a lack of sufficient justification.

“The Minister has rejected the proposal… [saying] there was not a business case or other justification for making the change,” he said.

Mr Fowler questioned what level of reserves would prompt action, noting, “when we’re on a trajectory for over $800 million of reserves… what business case or justification is necessary to seriously consider this question.”

He also pointed to structural challenges within the system, with differing positions between representative organisations complicating efforts to review levy settings, and said grower engagement remains critical to influencing future decisions.

While the proposal has been declined, the scale of GRDC reserves and the question of whether levy settings remain fit for purpose is expected to remain a live issue across the grains industry.

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