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An introductory guide to AHDB cereals and oilseeds levy from 1 July 2011

ahdb cereals levy activity

This information is only intended as a guide. Click here for The Agriculture and Horticulture Development Board Order 2008 which requires the collection of levies.

HGCA levy business case 

For all cereal and oilseeds levy enquiries please contact levy@ahdb.org.uk or 024 7647 8608

Are you liable?  

The following are obliged to collect and pay to the Agriculture and Horticulture Development Board (AHDB) levies on cereals and oilseeds grown and cereals processed in the UK. For the purposes of levy collection “principals” can include agents and financial intermediaries who can therefore be considered to be “buyers”.

  • Any person or organisation who buys cereals or oilseeds grown in the UK from the grower
  • Any person or organisation who, by way of business, carries out an industrial process to cereals grown in the UK
  • Any UK grower who sells cereals or oilseeds directly to a person or organisation outside the UK or into intervention

Levy is not liable in relation to cereal processed by or for the person that grew them.

It is an offence to provide false or misleading information relating to levy obligation to AHDB. Any person obliged to pay levy must keep sufficient records to enable AHDB to establish how much levy is due and must produce them to an officer of AHDB or a subsidiary company on demand. Failure to comply is an offence.

If you would like to register as a levy payer, please contact the cereals and oilseeds levy team on levy@ahdb.org.uk or 024 7647 8608.

Levy Rates

The following rates are in pence per tonne exclusive of VAT and apply to all transactions that take place on or after 1 July 2011.

Cereal grower 46p
Cereal buyer (dealer) 3.8p
Cereal processor – animal feedingstuffs 4.6p
Cereal processor – non feedingstuffs (human and industrial / other) 9.5p
Oilseeds grower 75p

The cereals levy is in two parts: the grower levy and the buyer levy. When cereals are bought, the buyer must deduct the grower levy from the price paid and hold it on trust for AHDB. The buyer may then take 5% of the combined grower levy and buyer levy as commission and pay the remainder to AHDB.

The oilseeds levy is recoverable in full by the buyer from the grower. Buyers must deduct all the levy from the price they pay the grower and hold it on trust for AHDB until payment is due.

How to pay

If you are liable to pay levy, you must regularly complete a return form declaring the tonnage of cereals or oilseeds you have bought or processed in the period since your last return.

  • For oilseeds, the return must be completed every six months
  • For cereals, the return must be completed annually if less than 250 tonnes is bought or 1000 tonnes processed in any year
  • For cereals, the return must be completed quarterly if more than 250 tonnes is bought or 1000 tonnes processed in any year

Returns must be received by AHDB within 28 calendar days of the end of the return period. Failure to make a return by the end of this period is an offence. Upon receipt of your completed return, AHDB will invoice you for the amount due, which must be paid within 49 calendar days of the end date of the period covered by the return.

A higher levy rate (standard rate plus 10%) is applicable for late payment. The late payment portion of the grower levy cannot be recovered from the grower by the buyer.

Return issued Category Period relating to
1 Jan Cereals (>250t bought/1000t processed p.a.)
Oilseeds		 1 Oct – 31 Dec
1 Jul – 31 Dec
1 Apr Cereals (>250t bought/1000t processed p.a.) 1 Jan – 31 Mar
1 Jul Cereals(>250t bought/1000t processed p.a.)
Cereals (<250t bought/1000t processed p.a.)
Oilseeds		 1 Apr– 30 Jun
1 Jul – 30 Jun
1 Jan – 30 Jun
1 Oct Cereals (>250t bought/1000t processed p.a.) 1 Jul – 30 Sep

What if I haven’t bought or processed any leviable crops during this period?

If you haven’t bought or processed cereals or oilseeds in the period covered by the return, it would be helpful if you would confirm this by making a NIL return, on the form or by email, so we know you haven’t just forgotten to make a return.

What happens if I don’t fill in the return?

If the return is not received within 28 calendar days of issue AHDB may estimate the tonnage you are liable to pay levy on. If AHDB doesn’t receive a completed return within 28 calendar days of us notifying you of the estimate, you will become liable to pay levy on the estimated amount.

About HGCA levy investment

HGCA is the cereals and oilseeds division of the Agriculture and Horticulture Development Board. HGCA is funded by a statutory levy raised by AHDB on growers, buyers and processors of cereals and oilseeds grown in the UK. Levies are payable to AHDB on the following crops:

– Cereals: wheat (including durum wheat), barley, oats, rye, maize, triticale or any two or more of such cereals grown as one crop (mixed corn).

– Oilseeds: rapeseed, linseed, soyabean, sunflowerseed or any two or more of such oilseeds grown as one crop.

All levies on cereals and oilseeds collected by AHDB are ring-fenced for HGCA activities including research and knowledge transfer programmes, supply chain and business improvement activities, market intelligence, exports and consumer marketing on behalf of the cereals and oilseeds sector.

Updated August 2012

For further information please contact:

Cereals and oilseeds levy team
AHDB
Stoneleigh Park
Kenilworth
Warwickshire
CV8 2TL
T: 024 7647 8607
F: 024 7647 8906
E: levy@ahdb.org.uk

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