The Agriculture and Horticulture Development Board’s (AHDB’s) four sector councils have begun discussions over increasing levy rates to address the impact of rising costs on the board’s spending power.
Conversations will be held with key industry stakeholders and levy payers during the coming months.
Levy payers and stakeholders can give feedback to the AHDB in a number of ways, including: Attending AHDB meetings, talking to representatives in relevant sectors, and contacting AHDB directly.
Once levy payers and stakeholders have had the opportunity to share their views, sector councils will decide on a recommendation to share with the Department for Environment, Food and Rural Affairs (Defra), which is responsible for making a final decision on changing levy rates.
If approved, new rates could be implemented from April 2024, the AHDB said.
AHDB levy rates
The levy rate for the beef and lamb and cereal and oilseeds sectors has not changed for more than 10 years, and for the dairy and pork sectors it hasn’t changed in over 20 years.
However, rising costs across agriculture and inflation have added pressure to sector budgets.
“[The] AHDB is having to adapt the work it’s delivering at a time when budgets are being impacted by inflation and a budget reduced by changes to our VAT status,” AHDB’s divisional director of engagement, Will Jackson said.
“There have been no increases for over a decade, inflation has eroded the value of the levy by around 40% in this time and there needs to be a significant step taken to close this gap
“There is never a right time to be recommending a levy increase, but we believe the current economic climate makes the case more urgent with clear, tangible benefits.
“Without a levy increase, we will lose the expertise and impact that the four sectors need.”
AHDB sector councils
AHDB sector councils represent the beef and lamb; cereals and oilseeds; dairy; and pork sectors. They decide what programmes of work are needed to support their sectors, and what recommended levy rate is needed to fund that work.
The council members are typically levy payers of the that sector. Appointments are made based on candidates’ skills, and are confirmed through a levy payer vote.
The AHDB is currently seeking new members for all four of its sector councils.
Interested parties have until Monday, June 26, to apply.
