Australia’s peak cattle producer body has signalled it would support the use of levy funds for industry advocacy in any future review of levy arrangements.
It comes as rural Research and Development Corporations are in the process of negotiating Statutory Funding Agreements with the Federal Government for the next 10 years (more below).
Cattle producers in Central Queensland last week made a case for the “shackles to be removed” on producer levies.
The Federal Government, which administers the $5/head cattle transaction levy and matches the 92c research component with taxpayer funding, precludes industry bodies from using levy funding for lobbying activities.
However, the same restrictions are not applied to environmental groups which regularly campaign against livestock production while receiving direct Government funding and tax-free charitable status.
Josie Angus and Joanne Rea said the contrasting rules amounted to “double standards” and called for producers to be allowed to use funds generated from the $3.66 marketing component of the levy, paid from their own pockets, to fund the defence of their industry.
In response to questions from Beef Central on where Cattle Australia stands on the use of levy funds, CEO Dr Chris Parker said the producer body was supportive of the use of a portion of the levy for advocacy activities.
He said Meat & Livestock Australia in its capacity as a research and development corporation had a statutory obligation to not engage in advocacy activities due to its obligations under Federal Government matched funding programs.
However, this obligation did not negate the fact there had been “a shift over time” in the manner in which levy funds may best be used.
“It is mandatory that producers have a say in how their levy is allocated and spent, and CA would support the ability to use an appropriate portion of levy funds for advocacy activities in any future levy review,” Dr Parker said.
“A modernised levy that clearly allocates funds to R&D, marketing and advocacy is critical to meeting the needs of any sector, particularly red meat.
“Appropriate levy allocation is integral to supporting a sustainable and prosperous future for all stakeholders across the beef cattle supply chain, that underpins the economic activity of the regional communities of Australia.”
‘Crunch time’ for levy negotiations
The next two weeks is shaping as a critical time for future levy arrangements.
Beef Central has been told negotiations are currently being held between every rural Research and Development Corporation (which includes MLA) and the Federal Government that will “lock-in” levy arrangements for the next 10 years.
Under the soon-to-be-introduced “Modernising the Agricultural Levies” legislation, all rural RDCs have until mid-November to sign new 10-year agreements, which will outline what each RDC can and cannot do with the levy funding they receive for the next 10 year period.
The new legislative framework commences on 1 January 2025 with matching funding provisions applying from 1 July 2025.
Beef Central has been told by agricultural industry sources that some RDCs are negotiating terms and “pushing back on changes” the Government wants to make.
Meat & Livestock Australia’s current Statutory Funding Agreement with the Federal Government specifically states that it “must not engage in agri-political activity”.
The agreement defines agri-political activity as “the financing with levy funds or matching payments (of) any form of external or internal political influencing”.
Beef Central asked Meat & Livestock Australia this week if marketing funds from the levy could be used for the purpose of mounting a defence for the industry against public campaigns from interest groups opposing livestock production.
“MLA’s Statutory Funding Agreement specifies that MLA is not allowed to participate in agri-political activity,” an MLA spokesperson said.
“MLA is not able to divert levy funds directly to third parties.
“MLA can invest in research projects and activities that inform policy decisions.”
Some levy funding already goes to projects that do not constitute “agri-political activity” but which also underpin the industry’s ability to demonstrate the sustainability of Australian beef production, such as the Cattle Australia’s recently developed Land Management Commitment.
Cattle Australia also receives some of its annual operating budget directly from industry projects funded by levies through an annual service agreement.
Asked what processes or changes would be required to remove existing restrictions on how levy funds can be used, the MLA spokesperson said this would be a policy question for the Australian Government.
They also added that peak bodies are able to initiate a review regarding respective industry levies.
In response to a further question about the SFA negotiations currently underway with Government, an MLA spokesperson told Beef Central the negotiations do not involve major changes to existing arrangements.
“The current process via the Australian Government is not about modifying the terms of SFAs for the RDCs.
“The update and review of the MLA SFA involves minor updates and standardisation of agreements between RDCs.”
So will we – levy payers – get to put submissions into the process & then vote on proposed changes to the use of OUR money??
If not WHY NOT?
It appears that only you and I are concened about due process. I feel we do not have due process There are two seperate groups in Australia’s grass fed beef circles. One group is state and, individual organisations such as in the NT and NSW and there are many other, none of which are incorporated with either each other OR as members of Cattle Australia. Then there is CA itself which they say represents the Australian grass fed beef Industry. Apart from an Annual General Meeting where a small number of CA members would show up, there is no mechanism to gain widespread voted opinion on any policy or constitutional issue.. To make decisions such as mooted in the article, a clear and democratic consensus gathering process MUST be used.
Here is the pertinent quote;- “However, the same restrictions are not applied to environmental groups which regularly campaign against livestock production while receiving direct Government funding and tax-free charitable status.”
Here is my answer;-
As CA only have SMO members attending on a watching but not legal membership basis anymore they themselves will have to lobby for the painfully obvious solution to this suggested dilemma. Lobby govt to cease funding the activist groups. It has been done before especially in the NT. The activist groups Game will then be over without them raising their own funds.
A handful of CQ producers has no rights to lobby on behalf of any other levy payers and cannot touch those legislated, statutory Levy funds!
Maybe the bright sparks that did not rest until they destroyed the National, Federal Govt legally recognised producers body the Cattle Council of Australia, should have thought of these eventualities. Before running around with a wrecking ball.