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  • Arable Biosecurity Levy To Be Enacted

Arable biosecurity levy to be enacted

Black grass 1

The board of Seed and Grain Readiness and Response (SGRR) has agreed to enact a Biosecurity Levy Order. Collection of this levy will formally start on April 1, 2024.

The SGRR board has agreed to enact a Biosecurity Levy Order which has deliberately been capped to keep the financial burden on growers and merchants as low as possible. Collection of this levy will formally start on April 1. Payment will be via on online portal; industry will be contacted by Baker Tilly regarding exact procedures.

The Biosecurity Levy for maize has been set at a rate of $0.25 per 10,000 seeds on hybrid seed sales – shared between the seed company ($0.0625), seed merchant or distributor ($0.0625) and the maize grower ($0.125). In the case of direct sales from the seed company to the grower, the seed company will collect the levy due from the grower ($0.125 per 10,000 seeds) and pay the levy of the seed company plus seed merchant or distributor ($0.125) - a total of $0.25 per 10,000 seeds.

For all other arable crops, the rate has been set at 0.1 per cent on harvested seed and grain (except maize) at the first point of sale, split equally between growers and commercial buyers.

For further information contact: Ivan Lawrie, Chair, Seed and Grain Readiness and Response info@sgrr.org.nz

Background

Strong biosecurity systems play a key role in the success of the New Zealand arable industry which relies heavily on international trade.

A significant cornerstone of our industry is the multiplication and re-export of imported seed. We also import new genetic material into the country for plant breeding programmes, to ensure the industry remains internationally competitive.

However, these activities also present biosecurity issues, particularly the risk of importing seed lines containing unwanted diseases, plant material and weeds.

But not all biosecurity threats are linked to grain and seed imports, others arrive over the border carried by the wind, or as hitchhikers via tourism and in other imported goods.

Previously, primary industries relied exclusively on the government to control the borders and to respond to any incursion.

That model has changed over the last decade to a government-industry partnership known as GIA. Under this partnership, government and industry agree to share the costs and responsibilities of any biosecurity readiness activities and for dealing with an incursion. This includes the costs of biosecurity surveillance, monitoring and reporting as well as things like compensating growers for any crops that need to be destroyed as a result of an incursion.

For the arable industry, the biosecurity entity, Seed and Grain Readiness and Response (SGRR), was set up in 2020 by five partners, Federated Farmers’ Arable Industry Group, United Wheatgrowers of New Zealand, Foundation for Arable Research, New Zealand Flour Millers’ Association and New Zealand Grain and Seed Trade Association. This occurred after extensive consultation with industry members.

Since its creation, SGRR has had to deal with several incursions affecting the arable industry.

The two biggest potential threats have come from an incursion of the invasive arable weed black-grass in December 2021 and the discovery of the tropical maize pest fall armyworm (FAW) in March 2022.

Both of these threats have been on the radar for the arable industry for a while and swift action was required to respond.

The FAW incursion response wound down in April 2023, after extensive surveillance and monitoring showed the pest was widespread. In its place, FAR and the horticultural industry, via SGRR, have received funding for research on long-term management of FAW.

For black-grass, the response is continuing, with all affected Canterbury paddocks under control and surveillance continuing. As part of this response, crops were required to be destroyed, with growers receiving compensation for their crop losses as part of the GIA agreement.

The farms involved had planted contaminated linseed from a seed consignment imported from France. Black-grass is a serious weed in Europe and the United Kingdom, where it is resistant to many herbicides, making it difficult to control. It spreads quickly in cultivated crops, competing for light, nutrients, space and water, resulting in yield loss.

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