Ask AHDB – Cereals and Oilseeds Levy Increase Proposals

[TFF]

AHDB’s Cereals and Oilseeds Sector Council would like your questions about proposals to improve services and deliver more by increasing levy rates from the start of the 2024/25 financial year.

Sector Chair Tom Clarke will be taking part in a Q and A session, responding to questions from levy payers, at AHDB’s ‘Funding Your Future’ livestream event on 9 November.

Tom is a fourth-generation fenland farmer growing around 180Ha of winter and spring milling wheat, along with 40Ha of linseed for seed. He also grows spring oats as part of his rotation. Tom has been on the NFU Sugar Board since 2018.

You can find out details of the proposals for the Cereals and Oilseeds Sector here: Funding Your Future 2023 – Cereals & Oilseeds | AHDB

The Sector Council are proposing an increase in levy rates to:

• Increase independent research
• Improve services such as Recommended Lists and RB209
• Increase farmer-to-farmer learning through Strategic Farms
• Set ground rules for developing carbon and biodiversity markets
• Provide impartial analysis to earn recognition for environmental progress across the industry
• Test and assess the impact of a wider range of products, such as bio-stimulants

The Cereals and Oilseeds Live Q and A session will start at 10:00 GMT on 9 November. Any questions not responded to on the day will be answered after the event and shared in this thread.

 

[AHDB]

Is levy payment from each sector ring fenced to be used in that sector or does it go into an overall pot?

Yes, it is all ringfenced by law, and can only be spent on the sector from which it was raised. AHDB has strict accounting procedures to ensure this happens.


Tom Clarke – AHDB Cereals & Oilseeds Sector Council Chairman & AHDB Board member

 

[AHDB]

To whose benefit is it to publish the annual planted area and harvest tonnage reports for free access?

As a levy payer I would prefer that information to remain private for the benefit solely of those who contribute the information, in order to give US a benefit, not broadcast/given away to the very marketplaces we’re selling to.

The grain trade is extremely concentrated and there are really only a handful of trading houses. They have most of the information at their own disposal.

By providing a free and independent source of this information to all (especially growers and smaller traders etc) AHDB provides transparency and helps to level the playing field for those who would otherwise be buying and selling without the advantages that the larger trading houses have. Some of the information we collect, the corn returns, are a legal requirement.

Tom Clarke – AHDB Cereals & Oilseeds Sector Council Chairman & AHDB Board member.

 

[AHDB]

Further to this can they say what proportion of the levy comes from farmers and what proportion comes from processors.

Answered live – 83% growers : 17% supply chain

 

[AHDB]

do you think by sitting on the fence you are not seen to be working for the grower which is where the main source of income comes from?
Is there a risk by being seen like this by the growers they could call a vote and if so what do you do to bring growers onside?

AHDB is not a farming union, and is prohibited in law from lobbying government.
We do undertake a lot of work in defending the reputation of our sectors, but perhaps less so in Cereals and Oilseeds than in the livestock sectors.
I believe the work we do underpins huge parts of the farming industry, and provides much more value back to the sector than we receive in levy.
83% of the levy is raised from growers, but arguably more than 83% of our work is of benefit to growers.

As a farmer I know it can seem like there is no one on our side, but there is. The AHDB is there to provide the things that farmers alone cannot, and to provide the independent evidence, research and support that farmers couldn’t provide for themselves or obtain from commercial organisations.

Everyone can benefit, that’s why everyone contributes.

The best way for us to reconnect with our levy payers is to deliver value back to their businesses and be bold and unashamed in claiming and branding what we have done. For too long we have been timid, and not very good at blowing our own trumpet. I hope and expect that is changing.

But if we can’t demonstrate that value then we deserve to be abolished.

Tom Clarke – AHDB Cereals & Oilseeds Sector Council Chairman & AHDB Board member

 

[AHDB]

Is AHDB compromised in its efforts to to support growers by taking levy payments from other sectors in the supply chain (even though processors just knock the levy off what they pay the farmers)?

Answered similar question live

Cereals: Funding Your Future 2023

We are hosting four live online events for levy payers on Thursday, 9 November where our sector chairs will briefly take you through the past year and how we...

www.youtube.com

 

[AHDB]

Will the AHDB stop taking money from processors? Personally I am happy pay more levy IF the AHDB is only working for farmers in a strong and co operative way.

Answered live

Cereals: Funding Your Future 2023

We are hosting four live online events for levy payers on Thursday, 9 November where our sector chairs will briefly take you through the past year and how we...

www.youtube.com

 

[AHDB]

Why aren't new varieties only added when they bring significant improvements? I propose at the very minimum greater than the LSD for yield. There is too much churn on the list.

https://www.youtube.com/live/2620qzXurng?si=VN81gxN1TkEaTeJl&t=3574

AHDB Delivering the future of farming (Cereals & Oilseeds session) - YouTube

Recommended Lists (RL) review update - YouTube

Theory to Field: Recommended refinement - Crop Production Magazine (cpm-magazine.co.uk)

Podcast explores Recommended Lists (RL) review results | AHDB

 

[AHDB]

Could AHDB provide a method for growers to demonstrate REDII compliance?

If the current assurance schemes are unable to provide this, then it is something the AHDB can look into, but it is difficult for non-EU member countries to obtain RED II compliance.

We understand measures are being put in place by Red Tractor which hold the best chance of obtaining RED II compliance.

Tom Clarke – AHDB Cereals & Oilseeds Sector Council Chairman & AHDB Board member

 

[AHDB]

At present I can only see 6 growers on the cereals and oilseeds council directing where levy is spent. That’s way less than 1% of all levy payers represented. Could a system be implemented to have a vote on all future projects before getting funding granted so each individual levy payer can have their say? A simple email explaining the project/ trial etc and a vote of ‘yes’ or ‘no’ with a minimum of 50% vote turnout across the sector. It would take seconds out of an individual levy payers day but provide a much better overview of the industry priorities as a whole.

Answered Live

Cereals: Funding Your Future 2023

We are hosting four live online events for levy payers on Thursday, 9 November where our sector chairs will briefly take you through the past year and how we...

www.youtube.com

 

[AHDB]

What plans does AHDB have to increase the democracy of council decisions ? should it run simple levy payer polls on issues ?

Answered a similar question live and below

Cereals: Funding Your Future 2023

We are hosting four live online events for levy payers on Thursday, 9 November where our sector chairs will briefly take you through the past year and how we...

www.youtube.com

 

[AHDB]

Can we have a simple democracy? I suggest along the lines of Nfu sugar? Just need 2 nominations by other levy payers to be put on the ballot. Then 1 member 1 vote.

Answered a similar question live, but:

I am a fan of the direct democracy used by the NFU Sugar Board.

Ultimately, AHDB operates within the rules set by the Government. I understand that systems with more direct democracy have been considered in the past and could be again.

The current system; where the AHDB Board has a majority of levypayers, Sector Chairs are appointed by ministers but are all current or recent levypayers, and where levypayers get to ratify (or not) Sector Council Members - is already much more democratic than the old AHDB, and more democratic than many representative and public sector bodies.

Sector Council five year plans are consulted on with Levypayers and Activities voted on. The last such exercise was only last year (2022) in the “Shape the Future”.

The momentum is definitely in the directon of more involvement, consultation and scrutiny by levypayers, with levypayers at the heart of the AHDB – as well as more direct democratic accountability.

Tom Clarke – AHDB Cereals & Oilseeds Sector Council Chairman & AHDB Board member

 

[AHDB]

why are we still drying cereals to 15% wen 16 was fine previously, think of the extra carbon that could be given away by doing this

Good Question. I suggest this may be an area where some of the new funds for research could be used.

Tom Clarke – AHDB Cereals & Oilseeds Sector Council Chairman & AHDB Board member

 

[AHDB]

I value the work AHDB do to guide efficiency and productivity but ultimately my ability to maintain a positive margin is dictated by the price at which I can sell.

Q. With so much political pressure to control food price inflation what will you do to ensure I receive a higher price for the goods I produce? (and the occasional advert doesn't cut it!)

In the most basic terms, if you want more money, get us more money!

Answered Live

Cereals: Funding Your Future 2023

We are hosting four live online events for levy payers on Thursday, 9 November where our sector chairs will briefly take you through the past year and how we...

www.youtube.com

 

[AHDB]

To add to this question , if you cant get more £ for the selling price, then you must work to reduce farm costs to try and maintain positive profit margin. Removing Red Tape would be one easy win.

Answered a similar question live

Cereals: Funding Your Future 2023

We are hosting four live online events for levy payers on Thursday, 9 November where our sector chairs will briefly take you through the past year and how we...

www.youtube.com

 

[AHDB]

How much of current levy funding goes to pay pensions? And what is the projection on this?

Answered Live

Cereals: Funding Your Future 2023

We are hosting four live online events for levy payers on Thursday, 9 November where our sector chairs will briefly take you through the past year and how we...

www.youtube.com

 

[TFF]

AHDB levy rate increases in four sectors receive Ministerial approval

Levy rate increases proposed by the Agriculture and Horticulture Development Board (AHDB) for the Beef and Lamb, Cereals and Oilseeds, Dairy and Pork sectors have received approval from Ministers in Defra and the Devolved Administrations.

The new rates will be implemented from April 2024 and allow AHDB to maintain its focus on delivering the objectives set out in the Sector Plans, published in November 2022.

With no increase to the levy in the Beef & Lamb and Cereals & Oilseeds sectors for more than 10 years and no change in over 20 years for Dairy and Pork, the spending power of levy funds over the past decade has been reduced by up to 40%.

AHDB Chair Nicholas Saphir said: “We are pleased Ministers have approved the proposals, which will ensure the levy continues to support the work AHDB has committed to prioritising for farmers and processors across all the sectors we serve.

“The new rates will allow us to enhance our key activity whether, for example, that involves growing export opportunities or exploring further marketing campaigns in the Beef and Lamb, Dairy and Pork sectors as well as increasing our research offering to Cereals and Oilseeds producers.

“Levy payers can be assured that our commitment to helping them navigate through an unprecedented period of change for the industry is secure and we will continue to listen to their feedback to ensure we are delivering real value for money.”

The Government has also agreed that Nicholas Saphir will serve a further 12 months as AHDB Chair.

The extension to Mr Saphir’s appointment means he will remain in the role until 31 March 2025.


Approved changes to levy rates from April 2024

Beef and Lamb (levy rate last set in 2011)

Cattle (excluding Calves) Calves
Producer – £4.05 to £5.06/head of cattle Producer – £0.08 to £0.10/head of cattle
Slaughterer/Exporter – £1.35 to £1.69/head of cattle Slaughterer/Exporter – £0.08 to £0.10/head

Lamb
Producer – £0.60 to £0.75/head of sheep Slaughterer/Exporter – £0.20 to £0.25/head of sheep

Cereals and Oilseeds (levy rate last set in 2011)

Cereal grower – 46.00p/tonne to 58p/t Cereal buyer – 3.80p/t to 4.80p/t
Cereal processor (human/industrial) – 9.50p/t to 12p/t Cereal processor (feed) – 4.60p/t to 5.80p/t
Oilseeds – 75 p/t to 94 p/t

Dairy (set more than 20 years ago)

Dairy farmer – 0.06p/litre to 0.08p/l

Pork (levy rate last set in 1996)

Pig producer – £0.85 to £1.02 Pig processor – £0.20 to £0.24