Farmers consulted over higher AHDB levies from 2024

Farmers and other levy payers are being warned of a likely increase in the amount they pay for AHDB services from next April, as the organisation seeks to grow its income.

According to AHDB engagement director Will Jackson, the value of the board’s levy income has declined by 40% over the past decade and the funding situation is becoming “urgent”.

“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,” he said.

See also: AHDB sector reports set out five-year spending priorities

As such, the four AHDB sector councils have begun a series of discussions with farmers and processors about increasing levy rates – though it is too soon to say what those increases might be.

“The sectors need to speak to stakeholders and levy payers before they can propose the details and terms of an increase,” said an AHDB spokesman.

Once decided, any proposal would then be put to Defra for approval, with implementation from April 2024.

Savings 

The AHDB is quick to point out that significant savings have been made to its running costs.

There have been staff redundancies since the horticulture and potato sectors voted to dispense with its services in 2021 and the organisation has recently moved to smaller offices near Coventry.

But other running costs continue to rise, putting pressure on sector budgets, while changes to the AHDB’s tax status mean it can no longer reclaim VAT.

“Without a levy increase, we will lose the expertise and impact that the four sectors need,” said Mr Jackson.

NFU president Minette Batters gave her tacit support to the AHDB’s plans, saying it had a vital role to play in the future of UK agriculture and the next few years would be more challenging than ever.

“We will need a properly resourced organisation to promote our products, seek new markets and enhance the productivity of the industry in the face of increased competition from other countries,” she said.

“As with any business or organisation, AHDB needs to be able to adapt and respond to whatever challenges come our way.

“Evidence and data must drive its work, and value for money must be evident in everything it does – this value must then be demonstrated to levy payers.”