Check Offs, royalties and levies

[malleefarmer]

Wheat 43.06 tonne value $17180.94 gst $1718.09 inclusive value $18899.03

GRDC levy 166.46 no gst
SA Grain Industry Fund $8.61 no gst
SA Grain Research Development fund $12.92 no gst

End Point Royalty $139.95 plus gst $14 value $153.95 =$3.25 per tonne plus gst

Total levies funds EPR $341.94

Amount Paid $18557.09 of which i have to remit gst to govt.

Buyer adm they collected and distributed funds levies and epr

The above wheat is 3 yrs into release and can be traded farmer to farmer for seed etc.

From memory cost of seed was around $880 per tonne gst inclusive in 2016 bought 2 t to multiply for seed i think.

The above epr of $3.25 will probably drop to $3 even $2.50 by 2020 when of course newer supposedly better varieties will be out

[Oliver88]

End Point Royalty = $3.25/ tonne every time the wheat changes hands?

[farmaholic]

Translated:
$399AUD/tonne before various deductions.

Hmmm.

Mallee, is that a spot price or previously contracted?

10% GST...WHOA!!! Do the state's have additional tax or are they harmonized? So much to the country and so much to the individual states?

$orry for not focu$ing on the EPR.

[malleefarmer]

End Point Royalty = $3.25/ tonne every time the wheat changes hands?

i stand corrected but only once

edit oliver88 your context may have been farmer to farmer sales no epr on that just gst.

when farmer b with his "new" seed delivers to elevators buyers collect the epr then as do feed merchants etc

[malleefarmer]

Translated:
$399AUD/tonne before various deductions.

Hmmm.

Mallee, is that a spot price or previously contracted?

10% GST...WHOA!!! Do the state's have additional tax or are they harmonized? So much to the country and so much to the individual states?

$orry for not focu$ing on the EPR.

GST basically abolished 90% of state taxes

buy drum of chemical for $300 plus 30 tax or $330 inclusive i claim the $30 back from govt

unpaid bookeepers

[Oliver88]

i stand corrected but only once

edit oliver88 your context may have been farmer to farmer sales no epr on that just gst.

when farmer b with his "new" seed delivers to elevators buyers collect the epr then as do feed merchants etc

I think I understand.
You purchase new wheat variety which likely has an initial royalty.
Year 2-5 growing same variety can clean your seed but will pay at every sale at terminal or feed mill.
$3.25/tonne is roughly a 1.25% to 1.5% seed tax here on a wheat sale.

[malleefarmer]

I think I understand.
You purchase new wheat variety which likely has an initial royalty.
Year 2-5 growing same variety can clean your seed but will pay at every sale at terminal or feed mill.
$3.25/tonne is roughly a 1.25% to 1.5% seed tax here on a wheat sale.

yep correct.

neighbours grwoing wheat thats 15yrs old here epr would be stuff all maybe $1 or $1.50 per tonne not sure but says these new super dooper varieties no better than old ones.

actually have to agree with that to a degree but were new ones shine here in oz is in the wet high yielding years but dry or drought years are a great leveller of yield and bank accounts and new ones no better but gm may change that in future "perhaps"

[malleefarmer]

sorry farmer spot price on the day $15 freight to elevator to be paid by me yet

[Oliver88]

Mallee if your neighbours are growing 15 year old varieties do you think this extra seed tax has helped improve or hurt grain farmers net income?

Has this seed tax helped fill wallets of seed company owners?
Has it lead to more seed companies in Australia?

[malleefarmer]

Say 25 years ago a awful lot of the plant breeding was done by ag colleges with great success and the epr was actually designed to help them fund breeding etc.

Now sadly its basically all private companies.

I have one very good freind whos a seed producer and most of the actaul seed money goes to him and the epr goes to company/breeders.

To most aussie we reckon its better to have epr than seed worth thousands of dollars a tonne.

And yeah old versus new ongoing argument like i said in good years new ones shit allover old ones by 15 even 20% but dud years diddly squat difference.

So maybe higher yielding areas may benifit more but conversley they pay more levies and tax i guess due to higher yields catch22 dog chasing its tail .

Breeding has to be funded somehow.

Only other way is closed loop seed system and nobody wants that

[malleefarmer]

One thing that does peeve farmers here is, on farmer kept seed has no epr but if i store some barley say to feed sheep later on in year im obliged to declare tonnage and pay epr on it as it goes down my sheeps throat.

Some say there storing 2 years seed in case of drought.

i just declare it and be done with it best guesstimate of tonnes stored.

[wd9]

Mallee, from what i understand the collection is around 428 million on 24 grains now per year. Started in the 90's.

With all those billions collected, what have the GRDC actually developed?