FLEXIBILITY KEY TO FUTURE – AND HISTORY – OF GRAIN LEVIES

By GPA Chief Executive, Colin Bettles.

GRAIN Producers Australia (GPA) is conducting a historic consultation process that’s giving all growers a say on the compulsory grain levies that they pay.

Therefore, it makes sense to take a look at the system’s history, to help answer some obvious questions and even bust a few myths.

Some will have you believe if rates are reduced, ‘We'll all be rooned’. But that’s a bit like arguing against having a reverse gear in your vehicle or no steering wheel, accelerator or brakes.

Ultimately, it’s about having a balanced system that does the job right and giving growers a say on what they pay is only fair and reasonable.

GPA’s Q&A document (excerpt below) on this review process shows the grain levy rates have been reduced at different intervals and increased, such as when new components have been added, as part of the system’s evolution.

20.        Have rates ever gone down?

Yes. Research and analysis in GPA’s review showed rates have been adjusted, up and down, since the system was introduced, to adapt to changing circumstances and seasonal production and pricing fluctuations. This system is complemented by the application of an ‘ad valorem’ levy (Latin phrase meaning ‘according to value’), calculated on commodity value, at the point of sale.

Using WA wheat rates as an example, the research and development component was 2.77% in 1990, and it increased to 3.00% from 1991-1993. In 1994, the NRS component was added – and this halved in 1996, to its current rate 0.015%. This reduction took the total rate to 3.015%, and this was maintained from 1996-1999.

In 1999 the research and development component was reduced from 3.00% to 1.00% taking the total of the component rates to 1.015%. In 2003, the research and development component was reduced again (from 1.00% to 0.099%) when the biosecurity activity component was introduced. The biosecurity activity component was 0.01% and therefore the total was unchanged at 1.015%, at this time. As referenced earlier, the biosecurity response component (EPPR levy) was implemented in 2008, adding 0.005% to the total. This is the last time that the total changed, and it has therefore remained at 1.02%, over the past 17 years.

This potted history shows the system wasn’t designed to be stagnant, with set and forget rates set in legislative cement.

When launching the historic GPA levy-review survey-poll earlier this week, GPA Chair Barry Large said:

‘This is your levy, your money, and your chance to have a direct say in how the system works. Levy rates haven’t changed since 2008, yet the system has built up record reserves. The research and development component alone is now sitting at $730 million, with more record production and levy collections forecast this year. That means we have a rare opportunity to take a proactive look at the system and make changes that benefit growers.’

When former Agriculture Minister, David Littleproud, was asked for his views (on ABC radio) about a previous Wool Poll process, and whether growers should vote for a higher levy rate, he also supported the application of democratic principles.

“Well, ultimately, it's a decision for wool growers to make up what amount of levy they pay, and that's the beauty of the Wool Poll is that producers will make that determination. And in the past, they've been proven to not necessarily go with the direction or the recommendation of AWI, and that's the beautiful thing of living in a democracy. And I would encourage all producers to cast a vote, because ultimately, it is their levy dollars, and obviously, the Australian Government, on behalf of the Australian taxpayer, also makes a contribution. But we'd encourage all producers to vote as quickly as they can.”

An obvious point many analysts have noted during GPA’s levy review process is that there’s no legislated voting process for grain producers to have their say; despite the record high national grain production in recent years – and therefore record levy collections off growers.

This discrepancy was also identified in GPA’s levy review report.

‘The Commonwealth Government recommends industry levies should be reviewed regularly to ensure they continue to meet the needs and priorities of industry and continue to deliver benefits to industry. However, unlike the dairy and wool industries which have specific regulatory arrangements for periodic polling of levy payers on R&D and marketing levy rates, there are no legislative requirements governing the conduct or frequency of reviews for grains industry levies.’

GPA is listening closely to growers, to hear what you have to say directly.

Thats why we’re encouraging you to participate in this democratic process, and to cast your vote, to help determine the right outcomes.

Your levy, Your rates, Your say. Please vote now HERE

Growers can express their views directly to the consultation process by voting in the poll that’s being conducted for GPA by Australian Regional Insights. Data analysis and reporting will be conducted by Australian Regional Insights, with all results presented in a non identifiable, aggregated format. The survey length is expected to take 3-5 minutes and is being made available digitally, to ensure the widest possible consultations. All information will be collected and securely handled by Australian Regional Insights in accordance with Australian privacy legislation.

This article was first published on 4 October 2025, at Farmonline HERE