Rise in board levy approved for grain and potato growers

HIGHER levy rates on cereals, oilseed rape and potatoes have been given the go-ahead by ministers at Wesminster and the devolved administrations.

The decision follows a consultation carried out by the Agriculture and Horticulture Development Board (AHDB) with growers and trade associations. Overall responses showed strong support for the three levy rate increases, which will affect the coming cropping year.

AHDB chief executive Tom Taylor said: "The positive stakeholder feedback for our work and our plans underlines the fact we are doing a good job for our levy-payers. It is a testament to the hard work and professionalism of everyone in the AHDB team."

From 1 July, cereal growers will pay the new rate of 46p per tonne for grain crops and 75p per tonne for oilseeds. Along with increased contributions from the trade, this will raise an additional 1.5 million for research and promotion.

Potato growers will face a levy of 41.38 per hectare in 2011 with buyers of the crop chipping in 18.04p per tonne they handle. This is the second year in succession the levy has risen as part of a three-year "little and often" policy in increasing income for potato promotion and research.

While English beef and sheep farmers will also see an increase in the levies charged by AHDB on their finished stock, Scottish livestock producers contribute to the funds of their own promotion and research organisation, Quality Meat Scotland.

Although the AHDB has been mentioned as one of the quangoes the UK government has targeted for elimination, the organisation operates without any support from the public purse.

Solving an difficulty that has hung in the wind for more than two years now following the aggregation of various sector promotion bodies into the AHDB, ministers also supported the building of a headquarters for the organisation on the site of the former Royal Show at Stoneleigh, Warwickshire.

Taylor said the decision meant that AHDB was now free to negotiate the detail of an outline lease deal already discussed with LaSalle Investment Management, which recently became responsible for the management and development of the 1,000-acre Stoneleigh Park site owned by RASE.

The NFU of England and Wales, a neighbour at the site, welcomed the move.