Milk poll: Farmers restricted to voting for status quo or levy hikes

The Dairy Levy Poll Advisory Committee has announced farmers’ voting options. It’s not good news for those who want a cutback.

Fenced in: Dairy farmers have been told they can only vote to pay the same or more in mandatory milk levies.

Australia’s dairy farmers have been given no choice but to vote to keep or increase the $32 million in mandatory levies they pay their peak research, development and marketing body.

The Levy Poll Advisory Committee announced this morning setting the voting options for next March’s poll at:

NO change to the levy (status quo)

AN increase of 15 per cent

AN increase of 20 per cent (recommended by LPAC)

AN increase of 25 per cent

The current levy is set at 2.8683 cents a kilogram levy on butterfat and 6.9914c/kg protein they pay to Dairy Australia, which translates to about $3600 to $3700 a year for a one million litre dairy farm, producing 78,000kgs of milk solids.

The Dairy Produce Act states LPAC makes “recommendations” to Federal Agriculture Minister David Littleproud on the levy poll voting options.

But the Federal Department of Agriculture is denying this is the case, arguing he must accept LPAC’s “recommendations”.

The decision not to offer farmers an option to reduce the levies they pay Dairy Australia, which has $26m in reserves, has angered many farmers, even some who intend to vote for an increase in the levy.

Australian Dairy Farmers councillor Phil Ryan said he supported “the right of farmers to vote for a reduction in the levy, despite voting the other way myself”.

In a media release issued this morning LPAC stated it set the voting options based on the fact that there had been no change to the levy rate since 2012, CPI increases in that time, future commitments required for the dairy industry to succeed, as well as analysis of the benefits of the levy investment for dairy farmers.

“After detailed consideration of these factors and farmer feedback, the Committee determined that a levy increase of 20 per cent is in the best long-term interests of the dairy industry,” LPAC Chair Ron Storey said.

“Throughout the process, LPAC heard from many farmers, some of whom advocated for no levy or no increase, and others who supported a larger levy for increased investment in research, development and extension, and other dairy industry services to secure their future.

“LPAC has considered these views, and on balance, believes farmers have been provided with a choice in the poll to select from the ‘increase’ options, or to choose ‘no change’ to the levy.”

However as reported last week, committee members NSW dairy farmer Heath Cook and his Queensland counterpart Matthew Trace resigned from LPAC in protest at its failure to offer farmers the right to vote for a reduction in the levy.

“I don’t believe the voices of dairy farmers who underpin the levy are being heard,” Mr Cook said last week.

Mr Trace said he felt “obligated to resign after the committee failed to meet its terms of reference”, which states the voting options must accurately reflect the views of levy payers.

The Weekly Times has been told the vast majority of the 40 submissions lodged with the LPAC expressed dissatisfaction with DA and the levy rate, either calling for a reduction or no levy at all.

Mr Trace said the wool industry was far more open in offering its growers a full range of voting options.

Woolpoll 2021 gives growers options to vote for levy rates ranging from zero to 1 per cent, the status quo of 1.5 per cent or rises of 2 per cent and 2.5 per cent.

But for dairy farmers it’s been almost 10 years since they got to vote on their levy rates, when in 2012 they were only offered the option of zero levies, the status quo or an increase.

Federal Parliamentary records show a staggering 39 per cent voted for the zero option.

LPAC’s full report can be viewed here.