Grain growers call for levy cuts as research reserves surge past $700m
Research reserves have exploded from $350 million to $730 million as grain producers question whether their levy system could soon breach the $1 billion mark.
Grain growers are considering cutting levies as research and development reserves leap from $350m to $730m - with questions mounting on how soon they could hit $1bn.
With farmers currently harvesting a bumper crop, three-quarters of surveyed producers have backed a Grain Producers Australia’s proposal to cut the R&D levy from 0.99 per cent to 0.79 per cent and raise the biosecurity activity component from 0.01 per cent to 0.07 per cent.
GPA research development and extension spokesperson and Rupanyup grower Andrew Weidemann said the result was significant and provided a pathway to further address reserves in the R&D system.
Forecasts from the Australian Bureau of Agricultural and Resource Economics and Sciences estimate the national winter crop at 70.7m tonnes, with farmers having already delivered about 30 per cent of the forecast total.
The GPA survey of 197 growers, conducted independently by Australian Regional Insights and verified through National Grower Register numbers, was presented to the federal Agriculture Minister and Assistant Minister.
It showed 76 per cent of surveyed growers were unaware of the accumulated reserves; 72 per cent were unsure how much they paid annually for levies; 69 per cent of those aware of the reserves’ growth endorsed the levy rate change; and 89 per cent supported regular input on compulsory levies, with 41 per cent favouring an annual review.
GPA chairman and Miling, Western Australia cropping farmer Barry Large said the aim was to see what the perspective of growers was.
“We have to decide whether or not this system is fit for purpose,” he said.
Mr Large said the levy system, in its current form, was set up in 1989 and a lot had changed since then. “Now it’s time to let the growers decide.”
Victorian Farmers Federation grains group director Ryan Milgate said with Western Australian farmers having a “blinder of a year” and northern NSW performing strongly, the possibility of reserves growing to $1bn wasn’t out of the question.
He said whether or not the levy was changed was up to individual growers but there was an opportunity to better use the money to improve research and development and opportunities in the industry. However, he also expressed concern about the low level of participation in the survey.
NSW Farmers grains committee chairman Justin Everitt said the organisation supported the levy system and growers’ right to vote on changes but did not back the findings of Grain Producers Australia’s consultation. He criticised the process, noting less than 1 per cent of eligible levy payers participated, including just 40 from New South Wales, and questioned the transparency and validation of voter eligibility.
GrainGrowers chairman and York, Western Australia, farmer Rhys Turton said the survey had only captured a small snapshot of grower views. He acknowledged reserves were accumulating but said the $1bn figure could still be a considerable way off.
Mr Turton said discussions were needed on exactly how levies were spent, noting confusion among growers about how R&D levies were allocated.
“From the feedback we have had, the far majority of growers want change, and they look at how that money could overcome challenges and build research capacity, but there are also many who do not think the levy rate should change,” he said.
