DELAY ON EXPORT COSTS WELCOMED AS SEEDING COMMENCES IN WA

Grain Producers Australia (GPA) has welcomed the Federal Government’s decision to delay the transition to full cost recovery of export regulatory services, as grain producers head into a critical planting window.

The Government has confirmed the move to full cost recovery will be deferred by 12 months to 1 July 2027, with existing pricing largely maintained in the interim and supported by additional government funding.

GPA Deputy Chair Matthew Madden said the decision reflects the concerns raised by industry, including in GPA’s submission to the export cost recovery process.

“This is a sensible and necessary step given the current operating environment for grain producers,” Mr Madden said.

“GPA has been clear that the timing of increased cost recovery did not reflect the pressures already being felt across the supply chain, particularly heading into seeding.”

“This decision is a step in the right direction and aligns with the position we put forward to government.”

Mr Madden said the deferral recognises the compounding impacts of global instability, particularly conflict in the Middle East, which is continuing to flow through to fuel, fertiliser and broader input costs.

“Growers are making decisions right now about how much crop to put in the ground, and those decisions are being shaped by input affordability and supply uncertainty,” he said.

“While this announcement provides some breathing room, it does not resolve the underlying concerns with the cost recovery model.”

GPA said it will continue to advocate for changes to ensure the export cost recovery framework is fair, transparent and appropriate for the grains industry, noting that several fundamental issues remain unresolved.

“We still have concerns about how costs are allocated, how efficiently services are delivered, and whether the model properly reflects the structure of the grains export supply chain,” Mr Madden said.

“We will continue working with government to ensure the final settings are fit-for-purpose and do not place unnecessary burden on growers.”

GPA also acknowledged recent government announcements aimed at supporting agriculture, including measures to secure fertiliser supply and temporary fuel cost relief.

However, Mr Madden said these measures are yet to translate into immediate relief for grain producers on the ground.

“Announcements around fertiliser supply and fuel settings are important, but growers heading into seeding need to see those measures flow through quickly,” he said.

“In Western Australia, planting has already begun, and across the rest of the country growers are only weeks away from making final decisions.”

“At the moment, many are still facing high input costs and tight margins, so timing matters.”

GPA said it will continue working with its State Farming Organisation members and the Federal Government to ensure policy responses reflect real-world conditions on farm and support the sustainability of Australia’s $26 billion grains industry.

ENDS

Further Information:

GPA Deputy Chair Matthew Madden: 0457 731 210

GPA Executive Officer Rachael Oxborrow: 0416 705 193