UPDATE: The Grains Research and Development Corporation’s (GRDC) recent budget review has ignited significant backlash from Western Australian farmers. Just days ago, the GRDC announced a self-serving recommendation to increase spending by an additional $60 million annually for the next decade, despite reserves soaring to $688.4 million—an increase of over $100 million in just one year.
This contentious review, conducted by ACIL Allen, has drawn fire from key farming organizations, including WA Farmers, the Pastoralists and Graziers Association, and the WA Grains Group. In a powerful statement, these groups have vehemently rejected both the review process and its findings, asserting that the GRDC should not have commissioned its own review due to inherent conflicts of interest.
Farmers argue that instead of considering a reduction in the levy, which could easily be adjusted through a ministerial order, the GRDC opted for a path of increased spending. “Reserves are excessive. Fiscal discipline is slipping,” the statement emphasized. With rising costs and tightened profit margins, farmers are alarmed by the GRDC’s assumption that they can sustain increased levies based solely on higher gross sales, rather than actual profits.
The response from the agricultural community is clear: they call for a halving of the levy to realign reserves and ensure sustainable spending practices. They advocate for a shift towards monetizing research or transitioning the GRDC to an industry-owned model, moving away from what they describe as an “open chequebook” approach.
The urgency of the situation cannot be overstated. Farmers across Western Australia are demanding immediate action from the Minister, insisting that the GRDC’s review process needs a thorough reevaluation. What was initially seen as a technical review has escalated into a political flashpoint, highlighting the growing discontent among growers regarding the management of their resources.
As this situation unfolds, the impact on the agricultural sector remains to be seen. Farmers are poised to mobilize and push for the necessary changes, urging for more accountability and a sustainable approach to the GRDC’s financial management. The message is clear: enough is enough, and it is time for decisive action from those in power.
Stay tuned for more updates as this story develops.
