LEVY LATEST

Horticulture looks at the imminent Defra consultation on changing the statutory grower levy legislation, and reviews some of the funding sources now open for industry R&D

Words by: Spence Gunn

Despite being continually reminded that the final decision on whether the statutory levy for horticultural and potato R&D stays or goes rests with the government, growers are still in the dark about how the results of the ballots, to axe the levy in both cases, will be taken forward. The only clue is that AHDB has already begun to wind up activity in these sectors, issuing its final levy bills in early November. The rate was unchanged for potatoes but reduced for horticulture from 0.45% to 0.27%.

The lack of a clear decision has been vexing, not only for growers who simply want to stop paying the levy and make their own arrangements, but also for those who would like some provision for collaborative funding to support at least some aspects of AHDB’s remit. In the past few weeks, Defra has indicated that whatever it decides, AHDB will continue to work on EAMU authorisations for crop protection products until April 2023. In terms of where we are in the process, to make changes to the levy legislation, Defra is required by law to set out in a consultation any proposals on how the statutory instrument will be amended. That’s expected shortly. “The process has taken us longer than we’d have liked,” Ian Smith, the Defra official who leads on the department’s relationship with AHDB, told a meeting of the NFUaffiliated British Protected

“The process Ornamentals Association has taken us longer than we’d have liked” Ian Smith Defra (BPOA) at the end of October. His team has been talking to stakeholder groups and with ministers, including in the devolved administrations and the Treasury, to find consensus for a proposal to present to the industry. “Opinions on the future for work that the AHDB has done have ranged from ‘we don’t want it to be done’ to other possible options, including, for

example, a voluntary levy,” he said.

He said various alternatives had been discussed with ministers and narrowed down to one ‘preferred option’, that the consultation will put forward. and a fi nal recommendation given to ministers for their decision. After that, the legislative change will require a parliamentary vote. Defra is hoping it can all be wrapped up before April, said Mr Smith.

WRAPPED UP BY APRIL?

Mr Smith was unable to disclose the nature of the proposal itself. But he said: “The consultation document will explain the preferred option and will ask if you are for or against it.

“There will also be space for anyone to add their comments or to present alternative options.”

Respondents will be asked if they are levy payers, and what sector (including sub-sectors in horticulture) they are involved in – so preferences can be linked to particular sectors.

An analysis of the results from the six-week consultation will be published

One R&D funding option that has been widely publicised is the proposal made by the Growers Better Levy Group (GBLG), convened by tomato grower Phil Pearson in response to the ballots and which includes more than 30 growers from across horticulture and potatoes.

The group is arguing the case for a new agency, tentatively called the Growers Research Agency, that would be fully grower-governed and managed. A small statutory levy at 0.1% of turnover would cover administration and some industrywide critical work.

There would also be provision for each sector to raise its own voluntary levy, which would be eligible for R&D tax relief, to fund work which it decides on. Further funding would be sought from grants and Defra.

“We’re looking for more than £100 million to come into the industry at an

One research organisation that already relies on a voluntary levy funding model is the Processors and Growers Research Organisation, PGRO, which has been undertaking R&D and off ering technical services on peas, beans and other legumes since the 1950s.

Currently the levy is raised at £1.10 per tonne of produce, collected either from the producer organisations and co-ops that most vining pea growers belong to, or through the trade in the case of other pea and bean supply chains. Average annual return for the past fi ve years has been around £600,000.

The organisation is a registered charity with a board of trustees that includes growers and other supply chain representatives.

Grower panels help to shape the research strategy and guide PGRO projects.

“Year-on-year fl uctuation in yields and planted areas means actual levy income can be a little unpredictable but we also undertake contract trials work and pull in grant funds for projects where available and appropriate,” says chief executive Roger Vickers.

“Competing for grants is getting harder, but on average every pound of levy funding is worth at least £2 in other income.

“There are always going to be a few growers who, for one reason or another, don’t pay the levy. But being so dependent on the grower levy means we work really hard to be guided by our grower members and deliver good value for them – and to understand what we could be doing better to reduce the small number of non-payers.”

A major new research funding programme – the Farming Innovation Programme – was launched by Defra earlier this year and the fi rst of three competitions within its Industry-led Partnerships Fund opened in October. The programme covers the whole of agriculture and horticulture and is unrelated to decisions being made on the future of the AHDB levy. Of particular relevance to those who have not been involved with this type of funding before is a grant for ‘research starter projects’ aimed at helping growers develop ideas in their early stages. Other grants will support feasibility projects and small R&D partnerships. A fourth competition opens early next year targeting larger and longer-term partnership projects. Next year will also see the launch of further funds under the programme. The Farming Futures R&D Fund, for example, is expected to run four competitions, each focusing on a diff erent theme. The fi rst is due to open in January for projects aimed at reducing agricultural emissions. The second is expected to invite applications for projects which will help farmers and growers adopt new technology and the results of R&D. Meanwhile, more than 40 projects are already sharing a total of £14.5m in R&D grants from a stand-alone competition (confusingly named the Farming Innovation Pathways) launched earlier this year as a ‘bridge’ into the new grants system. They include work led by Elsoms Seeds to improve tree seed quality; studies in the ETFE-clad ‘natural light’ greenhouse at Warwick Crop Centre; a scouting robot for fruit crops; a novel control system for the soft fruit pest spotted wing drosophila; a project on mechanical harvesting for broccoli involving vegetable grower Barfoots; and work led by Branston on wireworm forecasting in potatoes. NFU Energy won £87,000 to look at the challenges of supplying recovered waste industrial heat for glasshouses.

Government research funding body UKRI supports this regional R&D fund led by NIAB-EMR and designed to support ‘business-focused innovation’ in horticultural production and fresh produce packaging. Grants of between £50,000 and £250,000 are available. Applications closed in October and the awards are yet to be announced.

Launched in 2012 (as the Duchy Future Farming Programme), this not-for profi t R&D network is funded through the Prince of Wales Charitable Fund (derived from sales of Duchy Organic products) and sponsored by BBSRC, Riverford and Produce World. It is backed by LEAF, Innovation for Agriculture, the Organic Research Centre and the Soil Association; research partners include ADAS, NIAB-EMR and universities.

It funds groups of growers, conventional or organic, to work with a researcher to design and run their own trials, called ‘fi eld labs’, on anything they believe could make their businesses more sustainable or resilient. Recent labs have included work on electric weeding and tomato crop sensors.

applied level which has never happened before,” Mr Pearson told the British Tomato Growers Association conference at the end of September.

But although the group has been in talks with Defra, its idea will not form part of Defra’s proposal. Growers who favour it, or other alternatives, will have to say so in the consultation’s comments section.

Neil Bragg, growing media consultant and former chairman of the AHDB Horticulture board, told the BPOA meeting he thought all businesses recognised the need for some form of development work.

He said that many Dutch ornamentals growers had come to regret the decision a decade ago to end the levy their auctions collected from them – and have since joined Belgian auctions simply to gain access to their collaboratively-funded work.

He also suggested it should not be left to growers to fund industry R&D on their own. Other links in the supply chain should now contribute as well, he said, pointing to the HortLINK funding scheme that ran from 2000 to 2015. It supported projects by consortia of growers, their suppliers or their customers, and research institutes.

“It worked and is the kind of place we need to be in,” he said.

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