Steep rise in AHDB levies from April, ministers confirm

Livestock, arable, dairy and pig farmers will be paying 20-33% more in AHDB levies from April 2024, following approval by Defra and the devolved administrations of proposals from the organisation.

The proposals for rate rises for each of the four sector councils were submitted to minsters by the AHDB last October after several months of discussions with farmer groups and other stakeholders.

See also: Farmer involvement is key to red meat export effort

At the time it was noted that levies had not increased for at least 12 years for beef and lamb, and cereals and oilseeds – or 20 years in the case of dairy and pork – which had allowed inflation to substantially eat into their spending potential.

Following further deliberation, ministers have now decided that the original levy increases proposed by the AHDB should be applied, without any changes to the rates suggested.

For farmers, this means that beef, calf and lamb producers will see a 25% levy rise, while cereal levies will go up 26%. Dairy farmers will be paying 33% more, and pig producers 20% more.

Meat processors and grain traders will also face increased levies from April, in line with the increases faced by farmers.

Dairy and oilseed processors, however, are not charged a levy.

AHDB chairman Nicholas Saphir said: “The new rates will allow us to enhance our key activity whether, for example, that involves growing export opportunities or exploring further marketing campaigns in the beef and lamb, dairy and pork sectors, as well as increasing our research offering to cereals and oilseeds producers.”

These priorities match the areas identified by farmers in the 2022 Shape the Future consultation.

The government has also agreed that Mr Saphir will serve a further 12 months as AHDB chairman, until 31 March 2025.

Reaction

Phil Stocker, chief executive of the National Sheep Association, endorsed the steep levy increases, saying it was “essential that our levy body has the resources to do its work”.

“It has listened and, for our sector, is now focusing more energy on reputation and market development. As long as the funds are used effectively and responsibly, then it’s the right move.”

Mr Stocker said levy payers should remember that the levy increase came on the back of the HMRC decision to claw back some £4m of funds via VAT charges – “all part of agriculture being pushed to absorb costs and be less supported by the taxpayer”.

The Association of Independent Meat Suppliers (Aims) also welcomed the levy rise.

A spokesman said: “Every Aims levy payer based in England wants AHDB to provide them with the tools for growth, and we trust that AHDB will use the increase to levy wisely to assist processors.”