Grains levy review ‘leading the way’ on systematic reforms

“It’s just the right thing to do.

“It’s obvious what the problems are, and they’re only getting bigger, so let’s just get on with the job of fixing them.

“With no change since 2007, and only one in the past 25 years, it’s long overdue. And you’d have to ask why any anyone would oppose it, or what their true motives are.

“The first step in solving any problem is recognising that one actually exists.”

These quotes summarise common views and responses of growers throughout Australia — not just those in WA, where they produce the most grain — reacting to recent media reports.

These highlight numbers showing the Grains Research and Development Corporation has more than $1 billion, largely growers’ money, sitting in reserves (in Federal Treasury).

These media reports have also included details of Grain Producers Australia’s grains levy review processes conducted on behalf of the actual grain producers who pay them.

There’s been genuine shock at learning about the massive size of GRDC’s reserves — but also strong support urging GPA to simply get on with it and complete one of the basic but important jobs we do for the growers who in fact pay these levies: to review them.

This is a job we’ve had since these responsibilities, in representing all Australian grain producers who pay compulsory grains levies, were transferred from the Grains Council of Australia to GPA, in 2010.

GPA provides a unified process for representing these responsibilities for all growers — currently 24,500 — for the 25 leviable crops in the system.

For those who may have missed the recent news headlines, here’s what’s behind these strong reactions.

An article published in The Weekly Times last week showed GRDC’s reserves, according to the recent Federal Budget’s papers, are now set to exceed $1 billion.

Another article, published in Grain Central in March this year also quoted numbers from the 2025-26 Federal Budget showing GRDC’s reserves had escalated to $1.027 billion — representing an increase from $966.55 million in 2024-25.

“More than two-thirds of GRDC’s net resourcing comes from its opening balance or cash reserves, estimated to be $688.4 million from July 1. This is just over $100 million more than the 2024-25 actuals of $587.46 million as at 1 July 2024’,” the story wrote.

‘”Cash reserves in 2019-20 opened at $199.848 million, before falling to $165.22 million in 2020-21, and making steady gains in 2021-22 to $190.55 million and to $299.9 million in 2022-23.”

In January last year, another news article highlighted similar pertinent facts and GPA’s central representative role for growers.

It also referenced GPA’s submission to the Senate Inquiry into the Primary Industries (Excise) Levies Bill 2023, which had the details of GPA’s continuing grains levy review process, which started in mid-2022.

GPA’s levy review process started with member consultations and engagement, which included other industry and government stakeholders.

Independent expert analysis was also conducted, with a research process driven by asking the core policy question — are grains levy rates currently fit-for-purpose?

The answer to this question, on the strong case GPA’s been building steadily, seems even more obvious today.

The report (October 2022) concluded that a re-allocation of the grains levy (1.02 per cent) could be achieved without impacting in any material way on GRDC’s delivery of RD&E services via a reduction in the R&D levy rate from 0.99 per cent to 0.93 per cent.

Increasing Plant Health Australia’s levy rate (from 0.01 per cent to 0.07 per cent) would raise an estimated additional $7.2 million annually, for improving biosecurity protections and emergency response efforts.

In this analysis, the report estimated GRDC’s reserves were set to reach a total of more than $350 million by 30 June 2023.

Other key findings were:

* $122.5 million average annual grains industry levies collections (10 years to 2020-21).

* A record $230 million in total grains industry levies collected in 2021-22.

GPA’s 2025 Federal Election Policy Priorities document demonstrates the Australian grains industry’s strong production value and returns — and therefore huge income growth from levies — has increased even further, over this time.

It shows there was $31.1b in production returned in 2022-23 and a combined total of $81.15b (2022-24).

With a total grains levy rate of 1.02pc (GRDC, PHA and NRS (0.015pc)) the estimated levy collections from $81.15 billion would amount to $827.73 million (or about $275m per year).

The question now is — can we be even more ambitious, and consider options to try to optimise potential benefits for growers who pay these levies, and other multiple shared beneficiaries?

When life’s been good to you, you make longer tables, not bigger walls.

Nothing changes like change — and now’s the time to do it.

Colin Bettles is the chief executive of Grain Producers Australia