Farming News - Levy payments to shoot up for biggest farm sectors
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Levy payments to shoot up for biggest farm sectors
The Agriculture and Horticulture Development Board (AHDB) has launched a six-week consultation with industry stakeholders and trade associations on its Corporate Business Plan 2011-2014.
The consultation runs through to January 6 and includes an AHDB Board recommendation to increase the AHDB levy across three industry sectors: potatoes in Great Britain, beef and lamb in England, and cereals and oilseeds in the United Kingdom.
To undertake targeted R&D and efficient knowledge transfer to improve levy payer technical and business efficiency to reduce costs, increase yields, maintain and improve quality and optimise use of inputs;
To help levy payers produce in an environmental, social and economically sustainable way focusing on water, soils, fertilisers, pesticides and waste;
To give levy payers access to unbiased, high-quality market information;
To help defend the industry from unjustified criticism;
To undertake export market development to help underpin domestic prices;
To inform consumers;
To raise awareness of food and where it comes from among school children;
To deliver demonstrable AHDB operational cost and efficiency improvements.
The work in the Corporate Business Plan is funded by statutory levies paid by farmers and growers and others in the supply chain. These levy rates must be approved annually by Defra.
The AHDB board will consider the consultation responses at its meeting on January 24 before submitting its final Corporate Business Plan, including recommended levy rates, to Ministers. AHDB chief executive Tom Taylor said: "The decision to retain AHDB under the recent Government review underlines the pivotal role we perform in helping to improve the efficiency and competitiveness of levy-payer businesses.
"Where the board is recommending levy increases the primary driver is the need to deliver specific front-line sector activities."
The English beef and lamb levy increase of 18 per cent is intended to raise an additional £2 million to be invested by Eblex in boosting exports and helping to showcase the benefits of red meat.
Mr Taylor said the current financial resources were not adequate to capitalise on these opportunities while continuing to deliver the existing outputs. "The ultimate goal of this additional work is to help the industry achieve a more sustainable price for beef and lamb producers in England," he said.
The proposed increase for 2011/12 is one of 18 per cent, which if agreed would result in the levy being set at £4.05 per head for cattle producers, £1.35 per head for cattle slaughterers, 60 pence per head for sheep producers, 20 pence per head for sheep slaughterers.
The UK cereals and oilseeds levy increase will be invested in eight strategic areas of activity, with a focus on business improvement and delivering industry priorities arising out of HGCA's recent R&D strategy review.
It is proposed the 2011/12 levy rate be raised by 15 per cent and would be applied from July 1, 2011.
On a per tonne basis this would mean a 46p rate for cereal growers, 75p for oilseed growers, 3.8p for dealers, 4.6p for feed processors and 9.5p for other processors. This proposed increase would raise an additional £1.5million.
Prior to 2010, the GB Potato levy rate had remained unchanged for eight years.
This recommended increase of three per cent for 2011/2012 would result in area levy being set at £41.38 per hectare for producers who grow three hectares or more and 18.04p per tonne for purchasers buying over 1,000 tonnes per year. This proposed increase would raise an additional £180,000.
The levy rates for the other three AHDB sectors – milk and horticulture in Great Britain and pigs in England – are recommended to remain unchanged.