Defra to end AHDB Horticulture levy from April

Defra has confirmed it will end the statutory AHDB levy in the horticulture sector from next month – despite receiving a “mixed” response to the proposal in a public consultation.

The results of a joint consultation (PDF) by the UK government and devolved administrations on proposals to deliver legislative reforms to the AHDB Order were published on Tuesday (8 March).

The consultation ran for almost two months and closed on 10 January.

Opinions were split across the 470 responses about the proposal to end the statutory horticulture Ievy in Britain from April 2022.

See also: Opinion: Farmers need to help shape a better future

In total, 32.3% agreed with ending the levy, whereas 28.5% disagreed; 37.2% said it was “not applicable” and 2% did not answer.

This is in contrast to the 61% of AHDB horticulture levy payers who voted to end the levy when asked the same question in an AHDB ballot in February 2021

Defra said some respondents wanted the statutory levy mechanism amended, rather than removed, so it might be applied to subsectors in the future. While others supported a statutory levy, but not delivered by another grower-led organisation and not the AHDB.

Almost half of respondents (49.6%) said they wanted the AHDB pesticide application service to continue.

Therefore, Defra said funding from reserves will be used to help horticulture businesses obtain authorisations for the use of pesticides until April 2023. A longer term approach will be agreed with industry-led groups and trade bodies in due course.

Potato levy to end

In March 2021, in a separate ballot, some 66% of 1,196 AHDB potato levy payers voted to end the potato levy. However, the proposal to end the potato levy was supported by 74.8% of respondents in Defra’s consultation.

After considering all the responses to the consultation, Defra confirmed it will remove the statutory provisions for these two sectors, primarily related to applied research and development, from the AHDB Order. This will end the “one-size-fits-all” approach to these levies, it said.

“We have committed to a reformed AHDB, one that works for all of its levy payers. This response is testament to our endeavour to deliver a more efficient organisation, and better value for money for farmers and growers across the whole of the UK,” said a joint statement by UK government and devolved government ministers.

NFU demand

The NFU said it was right for Defra to respect the results of both AHDB ballots, but it urged the department to reconsider its decision not to leave a mechanism in place for subsectors of horticulture to introduce a statutory levy, should they wish to do so. 

Defra has also confirmed it will improve accountability to levy payers through a new regular vote on sector plans at least once every five years.