Further to consultation with members of the New Zealand Grain and Seed Trade Association (NZGSTA), which reflected both the high value of hybrid vegetable seeds and the decision making rules within the Commodity Levies (Arable Crops) Order 2006, the board of FAR has set the levy for hybrid vegetable seed crops at 0.3% at the first point of sale. All non-hybrid vegetable seed crops (open pollinated types) have the same levy rate as all other combinable crops of 0.8% at the first point of sale.
Nick Poole, FAR’s Acting Chief Executive commented that the new lower levy rate for hybrid vegetable seed crops had been put in place not only to reflect the higher value of these crops, but potentially higher grower inputs. He hoped that the new rate would also simplify the system for those companies forwarding the FAR levy.
Thus in accordance with the 2006 Levy Order, the FAR levies for 2007 for combinable crops (except maize) are as follows:
- Herbage and amenity seed – 0.8% of sale value
- All other grain and seed crops (cereals, pulses, etc) – 0.8% of sale value
- Open pollinated vegetable seed crops – 0.8% of sale value
- Hybrid vegetable seed crops – 0.3% of sale value
- Onion seed crops will be zero rated