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PRODUCERS SIGNAL STRONG SUPPORT FOR GRAIN LEVY RATE CHANGE

Grain Producers Australia’s (GPA) grains levy consultation (HERE) has revealed strong support for change, with three quarters of grain producer respondents calling for a reduction in the research and development (R&D) component of the compulsory levy. 


GPA Research Development and Extension Spokesperson Andrew Weidemann said this key message from GPA’s extensive industry consultation process is a significant outcome and a landmark determination given the grains industry has never conducted such a vote before. 


A full report from the professional and independent survey, conducted by Australian Regional Insights (ARI), reflecting the survey outcomes has been presented to the Federal Agriculture Minister and Assistant Minister and all required stakeholders. 


“An overwhelming majority of growers have voted in support of the proposal,” Mr Weidemann said. 


“This is a very clear indication from the people who pay the grains levies about a path forward to address the significant reserves in our R&D system. 


“The levies system was designed to be flexible, but unlike some other commodities, grains does not have a formally legislated voting process for growers to have a say at regular intervals. 


“GPA started this levy review process in mid-2022 review with the knowledge that levy rates had not changed since 2008, but our industry and its profitability has changed significantly since then.” 


The level of R&D reserves has increased steeply (estimated $350 million to $730 million) based on record production years since 2020-21 (HERE), with this component of the levy being the only one that attracts matching Commonwealth funding. 


The professional polling process, which included privacy standards and verification of grower (levy-payer) legitimacy by seeking a valid National Grower Register (NGR) number, comprised two key components:  


  1. A ‘Yes’ of ‘No’ response on the Proposal, to change levy rates (below). 

For the majority of these leviable grain crops the component rates are the same:  

  1. 0.99% of the value of XXXX (the research and development component); 

  2. 0.01% of the value of XXXX (the biosecurity activity component); 

  3. 0.005% of the value of XXXX (the biosecurity response component); 

  4. 0.015% of the value of XXXX (the National Residue Survey component). 


The GPA proposal is to adjust the components for each of these leviable crops, as per the following: 

  • Reduction from 0.99% to 0.79% for the research and development component. 

  • Increase from 0.01% to 0.07% for the biosecurity activity component. 


There is: 

  • No change to the biosecurity response component (0.005%) 

  • No change to the National Residue Survey component (0.015%) 


Q1. Do you support this proposal? 

Yes, I support this proposal 

No, I do not support this proposal 

 

  1. Growers also had capacity to provide their views/feedback on other issues relevant to the grains levy system, for qualitative data.  


Through this process GPA has worked with the Levies Team and Crops Section of the Agriculture Policy Division, at the Department of Agriculture, Fisheries and Forestry, prior to this consultation to ensure GPA’s review processes remained in compliance with the Guidelines. Especially to meet the need for accuracy in final consultation process for the actual proposal on grains levy components. 


These processes are also consistent with GPA’s core policy position (HERE) – to optimise value/returns of grains levies for growers and other shared beneficiaries, including government, industry and the environment – and to increase fairness and equity.  


Grains Levy Review report highlights 

  • 76% of growers were unaware of accumulated levy funding in R&D reserves 

  • 69% endorsement for grains levy rate change among those aware of R&D reserve escalation 

  • 89% of growers support grain producers having a say on compulsory grain levies 

  • 72% unaware of how much they pay annually for compulsory grain levies 

  • Those who were not comfortable reducing the R&D component of the levy are looking for more transparency and information 

  • Strong support for producers having a regular say on levies (89%), with most (41%) interested in an annual review. 

 

“As the peak industry body for the grains industry, we have now presented the results of the survey to the Federal Minister for Agriculture, Fisheries and Forestry, The Hon Julie Collins MP and her counterpart, Assistant Minister for Agriculture, Senator the Hon Anthony Chisholm, to consider amendments to the relevant levy components that would reflect this grower sentiment,” Mr Weidemann said. 


“This is the first consultation of this type conducted for the grains industry and presented to the Minister to affect change. 


“It’s compulsory for grain producers to pay levies and GPA wants to ensure we optimise the value and benefits they deliver, not only to growers, but also the industry moving forward.” 


As per GPA’s legislative responsibilities for all growers, GPA remains committed to working with its State Farming Organisation members, individual producers, Grain Growers and the Federal Government to ensure the breakdown of the compulsory grains levies components are fit-for-purpose. 


ENDS 


Further Information: 

GPA RD&E Spokesman Andrew Weidemann: 0428 504 544 

GPA Executive Officer Communications Rachael Oxborrow: 0416 705 193 

 
 
 
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