URGENT UPDATE: A recent review by the Grains Research and Development Corporation (GRDC) has sparked a major backlash among Western Australian farmers. The review aimed to assess whether the GRDC’s budget was “right-sized,” but instead has led to accusations of mismanagement and self-interest.
Following a series of profitable harvests, the GRDC’s reserves have surged to an astonishing $688.4 million, a rise of over $100 million in just one year. Despite increasing its annual research, development, and extension (RD&E) spending from $180 million to $245 million, the GRDC is now under fire for suggesting a further $60 million annual increase for the next decade to fund speculative projects.
The three major grower groups in WA—WAFarmers, the Pastoralists and Graziers Association, and the WA Grains Group—have united in their vehement rejection of the review’s findings. They argue that the GRDC should never have commissioned its own review, citing clear conflicts of interest and a misinterpretation of the law. Critically, they highlight that the most logical solution—reducing the levy—was not even considered, even though levy rates can be adjusted by ministerial order.
Farmers are expressing deep frustration over the GRDC’s approach. “Reserves are excessive, and fiscal discipline is slipping,” they state. With rising costs and tightening profit margins, farmers are questioning the GRDC’s assumption that increased turnover justifies higher levies. The levy is applied on gross sales, not net profit, making the current strategy unsustainable for many growers facing economic pressure.
The grower groups are calling for immediate action: halve the levy to manage reserves responsibly, and establish a transparent framework for future funding. They also recommend exploring alternative models, such as industry ownership, instead of continuing with an open-ended funding commitment.
What began as a technical review has rapidly evolved into a political crisis, with farmers demanding that the Minister take decisive action. The message from the agricultural community is clear: they are tired of excessive spending and are calling for accountability and reform.
As tensions rise, all eyes will be on the GRDC and the Minister’s response. The agricultural sector is watching closely to see how this situation unfolds, with significant implications for the future of farming in Australia. This developing story is a critical reminder of the ongoing challenges facing farmers and the need for effective governance in agricultural funding.
