What AHDB Cereals and Oilseeds spends its levy cash on

AHDB Cereals and Oilseeds is aiming to get on the front foot and attack some of the UK arable industry’s key issues, which are set to be identified in its Shape the Future survey.

This improved engagement should see the organisation stay relevant and ward off any threat of the revolts that resulted in the abolition of its potato and horticulture sector boards over recent months.

See also: How plant sap analysis helps a grower cut disease control costs

Value for money

The BBC is a good example of how difficult it can be for a large quango to keep the bill payers happy, with many calling for the licence fee to be scrapped.

In a similar way, AHDB has also come under fire from levy payers – and none more so than in the horticulture and potatoes sectors, where the stakeholders forced a ballot of whether to continue with a statutory levy last spring.

Much of the criticism has centred on value for money – growers in those sectors felt that they were simply not being listened to, leading to poor prioritisation of levy investment areas.

This is reflected in stats from AHDB’s annual Levy Payer Satisfaction survey, which shows a failure to improve over a five-year period, with horticulture’s value-for-money score (out of 10, with 1 being the lowest) falling from 4.7 to 4.4 between 2015 and 2020.

Over the same period, potatoes started at a lowly 4.2 and no statistically significant improvement was recorded by 2020.

Scrapped levies

These scores translated into growers voting overwhelmingly in favour of scrapping both levies. On 8 March, Defra announced these would end at the start of next financial year (April 2022).

So, is there a danger that AHDB Cereals and Oilseeds might go the same way?

As a starting point, its satisfaction scores are only bettered by the pork sector within AHDB, although 5.7 for value for money isn’t overwhelmingly positive and suggests room for improvement.

Talking to Farmers Weekly, Rutland farmer and AHDB Cereals and Oilseeds’ Sarah Bell acknowledges this. She says there is a lot to learn from the demise of the horticulture and potato levies.

There has already been reform at the top, with the Defra-appointed board now held to account by a democratically elected council that she now chairs.

It is hoped this will break the perception that its management team is too detached from levy payers, rebuilding trust and a two-way communication stream from top to bottom.

The next step is the Shape the Future survey, which will paint a clearer picture of levy payer satisfaction.

It will also identify the key issues affecting levy paying businesses and present an opportunity to ratify council members across all sectors.

“It’s so important that [levy payers] engage with us, or we simply end up working on other peoples’ priorities.

I’m very much of the opinion that we have two ears and one mouth, so there should be twice as much listening than speaking,” explains Mrs Bell.

AHDB Cereals and Oilseeds spend

The future of the cereals and oilseeds levy benefits from the sector being more disparate than others, with cereal and oilseed crops accounting for about 60% of the UK arable area according to Defra statistics.

So, unlike the consolidated sectors of potatoes and horticulture, that make up a combined 5%, growers themselves are less likely to take ownership of research priorities themselves.

AHDB Cereals and Oilseeds spent £11.6m on its activities in 2020-21 – see What does AHDB Cereals and Oilseeds do with levy payers’ cash?

Nearly 40% was spent on research aimed at arming farmers with the weaponry to maintain efficient and profitable, and in an environmentally sustainable way. 

The snapshot of AHDB Cereals and Oilseeds research projects – which are either ongoing, recently completed, or due for completion soon – clearly identifies where current research priorities are. 

Mrs Bell argues that some of the “big, hairy projects” like the recently completed Great Soils project, annual Recommended List and fungicide performance trials, and the UK cereal pathogen virulence survey (UKCPVS) would not be done without AHDB levy funding.

“We need to be doing what farmers can’t do on their own and also the things that are difficult to make happen in a commercial environment.”

She adds that an example of a research area that would not happen through commercial interest is integrated pest management (IPM), looking at aspects like aphid control with natural predators.

Needs of levy payers

There is to be a concerted effort to place AHDB on the cutting edge in areas like this, with a dumbing down or repetition of previous research a criticism of some of the output in other sectors, particularly potatoes.

There is also set to be more emphasis on horizon scanning for potential problems or knowledge gaps that need addressing and AHDB’s economics and analysis director David Eudall says one area gaining attention at present is the environment and sustainability.

He believes one of the key remits of AHDB is to guard against market failures by providing the right independent information for farmers to make better business decisions.

In the past, grain market analysis was critical and remains important, but there are many other sources of similar information, lessening the need for significant levy investment in that area.

Conversely, net zero emissions targets are seeing carbon markets popping up – on the premise of plugging the Basic Payment Scheme gap – and so far, there is little independent advice on the best way to navigate what may turn out to be a minefield.

“AHDB needs to adapt to the needs of levy payers, and you could argue that there is a greater risk of market failure in carbon trading and it’s something that needs more resource. It is about striking a balance,” explains Mr Eudall.

Areas of priority

That balance is now in the levy payers’ hands. The NFU’s crops board chairman says the increased engagement is a positive step and encourages everyone to register and contribute to the survey.

“The NFU has been clear that value for levy payers needs to sit at the heart of AHDB and for cereals and oilseeds, the NFU would like to see clear focus on improving farm performance, environmental delivery and effective evidence and data.”

Areas of priority identified by the NFU, which would show demonstrable value to levy payers, include improving nitrogen use efficiency, particularly relevant given net-zero targets and fertiliser market volatility.

Other aspects include breeding and husbandry to increase self-sufficiency, with the Recommended List evolving to fit industry need and emerging technology and practices.

IPM solutions to reduce the need for pesticide intervention will also be key as product losses and resistance gather pace.

How much do AHDB Cereals and Oilseeds levy payers contribute?

Levy payer

Charge/t

Cereal growers

46p

Cereal buyer/merchant

3.8p

Cereal processor (human consumption)

9.5p

Cereal processor (animal feed)

4.6p

Oilseed growers

75p

 

Help shape the future of farming

AHDB is asking levy payers to take part in its ‘Shape the future’ survey and outline the following:

  • The main challenges facing their farming sector
  • What work should AHDB be delivering?
  • Who should be on the sector council?

Growers have until 12pm on the 31 March 2022 to register to have their say.  Feedback will be gathered during April.

See the AHDB website for more information.

Coming up in the series

  • Part 2: Some of the lesser known activities carried out by the AHDB for growers
  • Part 3: Growers views on what the priority areas that the levy should be spent on 

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