Consultation outcome

Executive summary analysis of responses to the consultation and what we will do next

Updated 8 March 2022

The report is also available in Welsh (ar gael yn Gymraeg).

Executive summary

About the consultation and analysis of responses

The Agriculture and Horticulture Development Board (AHDB) is a statutory levy body funded by farmers, growers and others in the agriculture and horticulture supply chain to deliver services to help the sector adapt and thrive in a changing policy and commercial environment. The AHDB was created in 2008 following an extensive review of predecessor levy bodies. The AHDB currently serves several agricultural and horticultural sectors, with varying coverage across England, Great Britain, and the United Kingdom. Between them, AHDB’s sectors cover over 70% of the total UK agricultural and horticultural output. AHDB raises about £60 million per year in statutory levies. A levy raised in one sector can only be spent for the benefit of that sector.

On 17 November 2021 the UK government and devolved governments of Wales, Scotland and Northern Ireland issued a joint public consultation on proposals to deliver legislative reforms to the Agriculture and Horticulture Development Board Order (the AHDB Order). The consultation applied to the whole of the United Kingdom where levy is collected by the AHDB and closed at midnight on 10 January 2022. The consultation sought views on proposed changes to the AHDB Order that will deliver the recommendations from the 2018 Request for Views on the future of the AHDB. The changes will improve accountability of the AHDB to levy payers and enable it to respond to the outcome of the recent ballots on the future of the levy in the horticulture and potato sectors across Great Britain (GB). The proposed changes will establish the legislative foundations for a reformed AHDB and sit alongside improvements already underway to the structure and governance of the AHDB to deliver a more efficient and focused organisation giving value for money and greater accountability to levy payers in the future.

The UK government and devolved governments of Wales, Scotland and Northern Ireland have joint responsibility for the AHDB Order. We have worked jointly to produce this summary analysis of responses to the consultation and to agree the next steps on each of the proposals as set out in this executive summary. The detailed analysis of consultation responses and next steps can be viewed on GOV.UK and also with links on devolved government websites.

When considering this summary analysis of the responses it is important to keep in mind that public consultations are not necessarily representative of the wider population (in this case of all levy payers). Since anyone can submit their views, individuals, organisations, and businesses who are more able and willing to respond are more likely to participate. Because of this we have not only counted how many respondents held a certain view but also to included qualitative analysis of the additional comments provided in order to reflect the range of issues raised by respondents. For example, the number of responses received to this consultation from horticulture levy payers (120 responses) and potato levy payers (33 responses) are a small sample of all levy payers in these two sectors. Therefore, we have included qualitative analysis of the range of views provided alongside the quantitative analysis. In addition, the views of levy payers who voted in the 2021 horticulture ballot (802 levy payers voted, with 61% voting to end the levy) and the potato ballot (1,196 levy payers voted, with 66% voting to end the levy) also forms an important part of the wider evidence base informing decisions on next steps. The detailed results of these ballots can be viewed on the AHDB website: The vote on the future of AHDB Potatoes is now published and The vote on the future of AHDB Horticulture is now published.

Overview of the analysis of responses

We received 476 responses to the consultation (470 citizen space responses included in the quantitative and qualitative analysis and 6 email responses). Most respondents were from agricultural and horticultural levy payers with mixed farm businesses operating in multiple sectors. A list of responding businesses and industry organisations is included in the detailed analysis of responses published on GOV.UK. This executive summary provides an overview of the responses to the consultation and what we will do next on each of the proposals. A more detailed analysis of responses on each of the consultation proposals has been published separately on GOV.UK. Overall, five of the consultation proposals were supported by most respondents, two proposals received a more mixed response, and one proposal was not supported, as summarised below.

Proposals supported by most responses

The following consultation proposals were broadly supported by most consultation responses:

• Proposal to end the statutory potato levy in Great Britain from April 2022. Of the 210 respondents (out of 470 total responses), that provided a ‘yes’ or ‘no’ answer to this proposal the majority 74.8% of respondents supported it.
• Proposal to introduce a regular vote for levy payers on how the levy is spent at least every five years. This proposal was supported by the majority 87.4% of all 470 responses.
• Proposal to retain the right for levy payers to trigger a ballot on whether the levy should continue. This proposal was supported by the majority 79.4% of all 470 responses.
• Proposal for the AHDB to continue to deliver an application service for pesticide use for the horticulture sector in Great Britain and views on how it should be funded in future. Nearly half 49.6% of all 470 responses wanted to see a continuation of the AHDB pesticide application service. Only 8.7% did not support it. Of the remaining responses, 27.7%, said this was not applicable to them, 12.1% said they were not sure and 1.9% did not answer. Diverse views were provided on how the service should be funded, including a voluntary levy on businesses who use it most, a smaller more targeted statutory levy, a charge on pesticides producers, and government funding.
• Proposal to enable the AHDB to charge for services delivered to other (non-levy paying) agricultural industries in scope of the AHDB Order through a commercial agreement. Nearly half 46.8% of the total 470 responses supported this proposal. A smaller proportion 22.8% were against it and 21.5% were not sure. A few 7.7% said the proposal was not applicable to them and 1.2% did not answer.

Proposals that received a mixed response

The following consultation proposals received a mixed response with a more diverse range of views:

• Proposal to end the statutory horticulture levy in Great Britain from April 2022. Opinions were split across the 470 total responses received on this proposal. 32.3% agreed with ending the levy whereas 28.5% did not. 37.2% said it was not applicable and 2% did not answer. Views ranged widely from those who said the outcome of the democratic ballot to end the levy must be respected, to those who wanted the statutory levy mechanism amended (rather than removed) so it might be applied to subsectors in future. Others supported a statutory levy but not delivered another grower led organisation and not by the AHDB.
• Proposal to expand the scope of the AHDB Order to other agriculture sectors. Of the total 470 responses received just over a third 36.0% supported this proposal, slightly less than a third 30.6%, did not support it, whilst others 24.3% were not sure and a few 8.7% said it was not applicable or did not answer 0.4%. Diverse views were provided ranging from those who supported the AHDB sharing their expertise with other sectors where there is demand, to those who said the AHDB should focus only on levy paying sectors and those who were unsure and concerned about a potential for conflict of interest or cross-subsidy with levy paying sectors.

Proposals not supported by most responses

The following consultation proposal was not supported by most responses.

• Proposal to raise the maximum allowable levy rate in the English sheep sector by 25% to give more headroom to deliver additional services if there is demand from sheep levy payers for that in future. Of the total 470 responses most 52.8% said this proposal was not relevant. Where a ‘yes’ or ‘no’ response was given more respondents were against the proposal 28.5% than were in favour of it 17.7% and a few 1.1% did not answer. Many respondents commented that they wanted more information on the priorities and services that the levy is currently funding before taking a view on whether the levy rate ceiling should be raised.

A more detailed quantitative and qualitative analysis of responses to the consultation can be viewed on GOV.UK.

What will we do next?

The UK government and devolved governments of Wales, Scotland and Northern Ireland would like to thank all the respondents to this consultation for their views and feedback. We have carefully considered all the responses and views and have agreed the following next steps on each of the proposals.

Changes we will deliver now

We will end the statutory levies in the potato and horticulture sectors in GB from the start of next the financial year (April 2022). Having considered the range of views provided to this consultation, alongside the outcome of the democratic ballots to end the levies, we will proceed with removing the statutory levy provisions for these two sectors from the AHDB Order. This will end the ‘one size fits all’ approach to these levies which is no longer appropriate given the diverse nature of these sectors. Whilst we will deliver this legislative change as quickly as possible the changes may not come into force until a few months after 1 April 2022, therefore the AHDB will recommend a zero-rated levy for the potato and horticulture sector from 1 April 2022 until the repeal of the levy comes into force.

We recognise that many growers from horticulture subsectors who responded to the consultation said they want a statutory subsector levy to continue. This would enable AHDB’s important work on crop protection and research activity to continue, ensuring skills are not lost from the sector. We have considered these views very carefully but concluded that we do not currently have the details necessary to make legislative amendments to deliver a subsector levy. For example, there are questions on who would pay the levy, how it would be applied and calculated, and whether there should be any exemptions. Therefore, as a next step we will engage in discussions initiated by industry led groups and trade bodies to explore in more detail the design of industry led funding options including statutory subsector levies and /or voluntary levies or other options.

We also recognise that some respondents and members of the Growers’ Better Levy Group (GBLG) wish to see a statutory levy continuing but delivered through a new grower led organisation instead of the AHDB. We have considered these views carefully and concluded that establishing a new statutory levy body for horticulture would be a difficult and lengthy process due to the considerable governance and regulatory requirements that now sit around statutory levy bodies. However, as a next step we are keen to continue our engagement with members of the GBLG and other interested stakeholders and industry groups to discuss other industry led funding options.

Whilst the levy provisions will be removed from the AHDB Order it is important to note that the potato and horticulture sectors will remain in scope of the AHDB Order to ensure that legacy research, crop protection services and the collection of any outstanding levies owed can continue through a managed transition. This also gives flexibility to any parts of these sectors to continue to fund the AHDB to deliver important research projects if they wish to on a voluntary levy or commercial basis.

As set out in the consultation, ending the statutory levies for horticulture and potatoes means that AHDB’s activities in these two sectors, primarily related to applied research and development, will cease. Public sector funding through the farm budget in England will not pay for research or other actions that were, or could reasonably be expected to be, funded through levy investment. Therefore, it is essential that industries across these two sectors come together and provide leadership in developing alternative, industry led funding models that could be better suited to their needs, as well as enabling cross industry collaboration for priority research and development. We stand ready to work with industry led groups to engage with them and help facilitate industry led solutions over the coming months.

We will improve accountability to levy payers through a new regular vote on sector plans at least every five years. Having considered the responses to this consultation, which were mostly very supportive of this proposal, to improve accountability to levy payers we will introduce a new legislative obligation on the AHDB to deliver a vote at least once every five years on sector work programmes setting out how the levy will be spent. The first votes will take place in April 2022, and we encourage all levy payers to register to vote now with AHDB so they can have a say on the priorities they want AHDB to focus on and the services they want delivered for their sector. This is an important opportunity for all levy payers to influence how the levy is spent so it is focused on the things that matter most to their business. More information on how to register to vote can be found on the AHDB website Shape the Future register to vote.

We will retain the right for levy payers to trigger a ballot on the future of the levy. Having considered the responses to this consultation, which were mostly supportive of this proposal, we have decided to retain existing legislative provisions. These state that a ballot must be held on whether the levy should continue if, within a rolling three-month period, requests for a ballot are received from at least 5% of eligible voters. The new duty to deliver a vote on five-year sector plans should ensure AHDB to meet the needs of levy payers and deliver value for money. However, in line with most consultation responses we have concluded that it is still very important for levy payers to retain their current right to have a say on the levy continuing should there be widespread dissatisfaction within any of the levy paying sectors on their sector plans.

We will enable the AHDB to charge non-levy paying sectors that are in scope of the AHDB Order for services. Having considered the consultation responses, many of which were supportive of this proposal, we have decided to take forward changes to the AHDB Order to ensure that AHDB can charge to cover the cost of services it might deliver in future to non-levy paying sectors that are in scope of the order (such as the horticulture and potato sectors in GB). This will give flexibility to these non-levy paying sectors to continue to work with the AHDB if they wish to and for the AHDB to cover its costs by charging for such services. We will also make a technical change to clarify the current provisions on ‘charges for services’ to prevent the possibility that levy payers could be charged twice for a service.

Proposed changes that need further consideration before implementation

The future of AHDB’s pesticide application service. It is clear from the responses to the consultation that there is support for the continuation of a coordinated application service for Emergency Authorisations (EAs) and Extensions of Authorisation for Minor Use (EAMUs) of pesticides in the horticulture sector in Great Britain. This is considered vitally important for ongoing crop protection. There is less consensus on how the service should be funded and delivered in the long term. As a transitional solution we have agreed that AHDB will use funding from reserves to deliver the EA/EAMU application service and associated trials and research up until April 2023, after which a long-term funding solution needs to be put in place. As a next step we will engage in discussions with industry led groups and trade bodies on the detailed options for industry led funding for a coordinated EA/EAMU service. It is important to recognise that the AHDB team delivering this service need certainty on their future, therefore industry leadership is needed to work towards a preferred funding solution that has widespread support by the summer of 2022.

Extending the scope of the AHDB to work with other agriculture sectors on a voluntary levy or commercial basis across the UK. Having considered the range of views on this proposal, and some of the differences between respondents from different countries, we have decided not to deliver this legislative change now. However, as a next step we will take forward discussions between the UK and devolved governments to explore in more detail the benefits and safeguards needed for how a broader scope for the AHDB can work in practice, with a view to implementing this legislative change in future subject to the outcome of these further discussions.

Raising the English sheep levy ceiling. Having considered the responses to this proposal it is clear that levy payers need more information on what the sector priorities are before taking a view on whether they can be delivered within the current levy ceiling. Therefore, we have decided not to proceed with this change now. As a next step AHDB will engage with levy payers to agree priorities through the sector plan process. After this we will review whether further discussions on raising the levy ceiling are needed to deliver the priorities that levy payers want to see delivered.

Future reforms to the AHDB

The consultation responses provided suggestions for additional changes to AHDB that industry would like to see, many of which have already been delivered by AHDB, or are continuing to be delivered as part of AHDB’s change programme including:

• AHDB has put in place governance changes to the main Board and sector councils to deliver more levy payer involvement, including levy payer ratification of sector council members through the regular voting process.
• AHDB has ended its financial support for Red Tractor.
• AHDB has and will continue to improve ways of communicating and engaging with levy payers.

This has delivered a more efficient and focused organisation providing greater accountability and influence for levy payers over the direction and priorities for AHDB.

There were also suggestions on the strategic priorities that some respondents want AHDB to focus on such as climate change, export development, promoting British Food, and crop research. The setting of strategic priorities will form part of the discussions that AHDB will deliver with levy payers and sector councils over the coming months which will feed into the development of sector plans.

Next steps timeline

We will deliver the priority legislative reforms outlined in this executive summary over the next few months. This will be the first step to ensure changes are in place at the beginning of the financial year 2022/23. We will also engage with industry initiatives and groups in the horticulture and potato sectors to help facilitate industry led discussions on funding options for research and crop protection activities.

We recognise that many growers in subsectors such as soft fruit, top fruit and mushrooms want to see new funding models for a coordinated approach to research and crop protection implemented quickly so that important research skills and capacity are not lost from the sector. Therefore, over the next three to four months we will engage with industry groups and trade bodies that are interested in developing more detailed proposals for grower-led funding models, such as voluntary levies and / or subsector statutory levies for those subsectors that want it. We are keen to explore whether there is industry support for voluntary subsector levies as the money raised can be used in a more flexible way than statutory levies which are classified as public money and as such are bound by tighter governance rules and restrictions. However, we remain open to exploring proposals for a statutory subsector levy (delivered by the AHDB) which could be implemented through further changes to the AHDB Order later this year or early next year if there is widespread consensus on the detailed design of a new subsector levy from those businesses that would be paying it.

Over the coming months we will also take forward work to explore and discuss with industry further technical changes to the AHDB Order to deliver efficiency and operational improvements and to explore the potential benefits of updating the functions of the AHDB to deliver animal and plant health and welfare related services in future. Subject to the outcome of targeted industry consultation with any sectors impacted by these further changes we plan to deliver them later this year or early next year, except for where any changes require primary legislation in which case they may take longer to implement.

Taking forward these changes and next steps will establish the foundations for a reformed AHDB that delivers value for money helping to support farmers as they enter a time of significant change outside the EU. This includes supporting farmers to meet the challenges and opportunities of reducing carbon emissions, engaging in environmental land management, and improving competitiveness and productivity. As we negotiate new trade deals around the world the AHDB will also play an increasingly important role in helping farmers access new markets, delivering important export market development work as well as domestic marketing and promotion.