Levy rates agreed for 2020/21
Friday, 20 March 2020
Levy rates applied to farmers, growers and others in the supply chain for next financial year - from 1 April 2020 to 31 March 2021 - have been approved by UK Ministers.
The GB Horticulture levy rate is to decrease by 10 per cent. For the majority of horticulture growers, this takes their levy down from 0.5% to 0.45% of business turnover from 1 April 2020. For mushroom growers, it takes their levy down from 8.0 to 7.2 pence per litre for agaricus spawn and 2.0 to 1.8 pence per litre for non-agaricus spawn.
Levy rates in the other five sectors covered by AHDB (Beef and Lamb in England; Pigs in England; Cereals and Oilseeds in the UK; Potatoes in GB; and Milk in GB) remain unchanged from the 2019/20 rates (see table below).
The GB horticulture industry is changing and as it does, our work for the horticulture sector is becoming more focused. The sector is also under sustained financial pressure and the scale of levy is a big bill for a lot of growers. Therefore, the AHDB Board recommended lowering the rate to Ministers. This follows initial work by a horticulture levy working group, made up from AHDB staff and a cross-section of growers, that has been reviewing the horticulture levy rate and the levy calculation mechanism within the Statutory Instrument to make it fairer, simpler and more proportionate for growers. The estimated financial impact of this reduction to AHDB horticulture is approximately £800,000.
Chief Executive Jane King said: “This is a significant time of change for UK agriculture. Driving transformational improvements for the industry remains at the heart of what we do with our farmers, growers and processors.
“I am confident that the agreed levy rates are appropriate for the next twelve months and the 10% reduction in the horticulture levy rate is achievable, prudent and responsive to the sector’s situation”.
AHDB levy rates for 2020/21
The rate for the GB horticulture levy (including mushroom spawn) is the only change from the previous year.
Sector |
Levy rates 2019/20 |
Levy rates 2020/21 |
Higher rate for late payment |
Beef and Lamb (England) |
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Cattle (excluding calves) |
£ per head |
£ per head |
£ per head |
Producer |
4.05 |
4.05 |
4.05 |
Slaughterer/exporter of live cattle |
1.35 |
1.35 |
1.35 |
Calves |
£ per head |
£ per head |
£ per head |
Producer |
0.08 |
0.08 |
0.08 |
Slaughterer/exporter of live calves |
0.08 |
0.08 |
0.08 |
Sheep |
£ per head |
£ per head |
£ per head |
Producer |
0.60 |
0.60 |
0.60 |
Slaughterer/exporter of live sheep |
0.20 |
0.20 |
0.20 |
Pigs (England) |
£ per head |
£ per head |
£ per head |
Producer |
0.85 |
0.85 |
0.935 |
Slaughterer/exporter of live pigs |
0.20 |
0.20 |
0.22 |
Milk (GB) |
Pence per litre |
Pence per litre |
Pence per litre |
Buyers and direct sellers of milk |
0.060 |
0.060 |
0.066 |
Cereals and oilseeds (UK) |
Pence per tonne |
Pence per tonne |
Pence per tonne |
Cereal grower |
46.00 |
46.00 |
50.60 |
Cereal buyer |
3.80 |
3.80 |
4.18 |
Cereal processor (human and industrial) |
9.50 |
9.50 |
10.45 |
Cereal processor (feed) |
4.60 |
4.60 |
5.06 |
Oilseeds |
75.00 |
75.00 |
82.50 |
Horticulture (GB) |
% sales turnover |
% sales turnover |
% sales turnover |
Horticulture products |
0.50 |
0.45 |
0.495 |
Mushroom spawn |
Pence per litre |
Pence per litre |
Pence per litre |
Agaricus |
8.0 |
7.2 |
7.92 |
Non-agaricus |
2.0 |
1.8 |
1.98 |
Potatoes (GB) |
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Potato growers |
£42.62 per hectare |
£42.62 per hectare |
£46.882 per hectare |
Purchasers of potatoes |
£0.1858 per tonne |
£0.1858 per tonne |
£0.2044 per tonne |