Grains, Seeds and Hay Biosecurity Industry Funding Scheme: Annual Report 2013/14

From the Chair

I am pleased to present the 2013/14 Annual Report to the participants of the Grains, Seeds and Hay Industry Funding Scheme, stakeholders involved in the Western Australian grains, seeds and hay sectors and to the Minister for Agriculture and Food.

Over the past 12 months, we have endeavoured to deliver a biosecurity scheme that addresses the priorities of the WA grains, seeds and hay industries. Varying messages from the industry regarding the inclusion of skeleton weed in the Scheme prompted targeted consultation with Scheme contributors. The purpose was to determine the level of industry support for skeleton weed as a priority issue to be targeted via the Scheme.

I was pleased with the level of engagement we had with the industry, with almost 500 contributors responding to our survey. The findings made it clear that industry view skeleton weed as a priority issue, and we have been working with the Department of Agriculture and Food, Western Australia (DAFWA) to ensure an effective and efficient control program that delivers the outcomes expected by the industry.

Both the Skeleton Weed Control Program and the Bedstraw Eradication Program were once again successfully delivered in partnership with DAFWA. Of particular note was a 42% reduction in the total area infested by skeleton weed, and the release of one property from quarantine for three-horned bedstraw.

The level of industry support for the Grains, Seeds and Hay Industry Funding Scheme remains strong. The Scheme is industry-controlled, and I encourage scheme contributors to have a say in how the Scheme is used to support a viable and sustainable industry into the future.

I thank the Industry Management Committee for the work they have undertaken over the year, DAFWA for their delivery of the programs, and all participants in the Scheme for their contributions toward the biosecurity of our industry.

On behalf of the Committee, I look forward to a continuing partnership throughout 2014/15.

Yours sincerely

Barry Large
Chairman

29 October 2014

Overview of the Grains, Seeds and Hay Industry Funding Scheme

In June 2010, the Grains, Seeds and Hay Biosecurity Industry Funding Scheme (IFS) was introduced to address biosecurity threats relevant to the Western Australian grains, seeds and hay industries. The Scheme was established under the Biosecurity and Agriculture Management Act 2007 (BAM Act) as a mechanism to enable grain, seed and hay producers to identify the pest and disease priorities at a whole-of-industry level, and then to raise funds for programs that address these priorities.

Funds are raised through a grower contribution that is collected by 'registered receivers' at the first point of sale for grains, seeds and hay — a registered receiver is a produce receiver that purchases or receives 500 tonnes or more of grain, seed and/or hay within a given financial year. These contributions are forwarded to the Department of Agriculture and Food, Western Australia (DAFWA). As per the IFS regulations, DAFWA maintain and administer the Grains, Seeds and Hay Industry Declared Pest Control and Compensation Account in consultation with the industry.

Growers do not have to participate in the Scheme — there is a mechanism that allows them to ‘opt out’. Opting out does not remove the legal requirement to deal with the pests and diseases to which the Scheme relates, but does disqualify the grower from any benefits provided by the Scheme such as assistance and compensation.

The Grains, Seeds and Hay IFS is overseen by a seven-member Industry Management Committee (IMC). The Minister for Agriculture and Food appoints the IMC members after inviting industry nominations and receiving advice from an Industry Appointments Committee. As required by regulation, the majority of the IMC are full participants of the Grains, Seeds and Hay IFS.

The IMC is responsible for approving the biosecurity-related programs funded through the Scheme, and providing advice to the Minister on the Scheme’s area of operation and the contribution rate.

The state government, through DAFWA, provide the necessary support to ensure proper governance and the effective operation of the Scheme and IMC. This includes secretariat, communications, policy and technical support, as well as financial management. Furthermore, the normal regulatory inspection and compliance activities undertaken by DAFWA closely complement the priorities of the IMC.

2013/14 Grains, Seeds and Hay IFS at a glance

• contributions of 30 cents per tonne on the first sale of grain/seed produced in the agricultural area
• contributions of 15 cents per tonne on the first sale of hay produced in the agricultural area
• contributions totalling $4 625 044 were received
• contributions were used to fund programs to control skeleton weed and eradicate three-horned bedstraw
• the cost of the skeleton weed control program was $3 052 000
• the cost of the three-horned bedstraw eradication program was $156 523
• committee costs totalled $37 131
• twelve producers opted-out of the Scheme, with a total of $25 818 refunded to these producers.

Industry Management Committee Members

The terms of all the members of the inaugural Industry Management Committee expired in 2013. Nominations were sought from Industry and assessed by an Appointments Committee comprised of industry representatives. The Appointments Committee made recommendations to the Minister for Agriculture and Food on the Committee membership and terms of appointment. The newly appointed Committee began operating in September 2013, with the Committee appointing the Chairperson.

Mr Barry Large (Chairperson) runs a 8500ha family farm in the Miling area. The main focus of the farm is a 6000ha cropping program, which is complemented by a Merino flock. As well as sitting on a number of national agricultural industry bodies, Barry is a member of the Biosecurity Council of Western Australia, a grower representative on the Biosecurity GrainGuard, a Director of Grain Producers Australia and a Director of the Grains Industry Market Access Forum.

Mr Tim Cattle currently runs a robust mixed farming enterprise in Lake King. Tim has an active interest in the local community and surrounding areas.

Mr Ron Creagh owns and operates a broadacre cropping and livestock enterprise in the Shires of Nungarin and Trayning. He is a founding member of the Ningham Focus Group, and a past President of the Nungarin Shire Council. Ron was a member of the Agriculture Protection Board, Chairman of the GrainGuard initiative and member of the Biosecurity Council of Western Australia. Ron is currently appointed to the Grain Industries Association of WA’s Wheat Council.

Mr Chris Gillam runs a mixed cropping, sheep and cattle enterprise in Dongara, with a focus on a wide range of crops. He has been involved in Better Farm IQ and EMS with the Mingenew-Irwin Group (MIG), and has sat on various groups including the Northern Agricultural Catchments Council, MIG, the CLIMA Grower Advisory Group, the Pulse and Oilseeds Partnership Group, and WAFarmers. He is active in his community with previous roles in local government, including time as the Chief Fire Control Officer.

Mr David Leake farms a mixed cropping and sheep property at Kellerberrin in the central wheatbelt, and also operates a small winery/café in the Perth Hills. He has represented WAFarmers on a variety of biosecurity committees, and has been very active in local catchment projects demonstrating best practice in saline areas. David has also been very committed to on-farm trials on sundry agronomic issues through the Kellerberrin Demonstration Group.

Ms Suzanne Woods is partner in a 2000ha cropping business in the Calingiri district, producing hay for domestic and export markets. She has been active in numerous local, regional, state and national groups associated with agriculture and rural communities.

Mr Brian Young runs a wheat/sheep farm at Kondinin. As a former member of the Agriculture Protection Board, Brian has a good understanding of the need for effective biosecurity measures.

Committee activities in 2013/14

Since the introduction of the IFS in 2010, the Industry Management Committee (IMC) has governed the collection, management and use of industry funds to deliver a biosecurity Scheme that benefits the Western Australian grains, seeds and hay industries.

During the 2013/14 year, the Grains, Seeds and Hay IMC held four ordinary meetings and two teleconferences. The focus of these meetings was to receive briefings and make decisions around the collection and remittance of grower contributions, progress of the IFS-funded programs and the general governance and effectiveness of the Scheme. 

Summary of key IMC activities during 2013/14

• Input to the State Bedstraw Eradication Plan.
• Discussion with the Biosecurity Council of Western Australia on biosecurity roles, responsibilities and principles.
• Consultation with Scheme contributors regarding funding for skeleton weed control.
• Four committee meetings, two teleconferences.
• Endorsement and implementation of IMC strategic plan and activity plan.
• Monitoring the remittance of contributions.
• Communication and promotion of the IFS to industry.
• Providing recommendations to the Minister on the 2014/15 IFS contribution rate and area of operation.
• Approval of the 2014/15 IFS-funded programs.

Goal 1: Deliver acceptable and effective programs to meet the needs of industry

Industry communications and consultation

Industry consultation on funding for the Skeleton Weed Program

The IMC conducted a survey of participants in the Scheme to gauge the industry’s views on skeleton weed as a priority issue to be addressed via the Scheme. The survey was triggered by two issues — firstly, the grower contribution rate would need to be increased in order to sustain the Program in its current form; secondly, feedback from parts of the industry had indicated that skeleton weed should not be a priority of the Scheme.

The survey results confirmed skeleton weed as an issue the industry want to continue to fund via the Scheme. However, there was a relatively even divide in the responses with regard to the level of funds the industry were willing to contribute to the program. The IMC approached key industry organisations for further advice. This advice, coupled with the fact that WA had a record 2014 harvest (and therefore increased levels of IFS contributions), it was decided to maintain the current contribution rate. The IMC will continue to monitor the program and income; however, it is likely that either the costs of the Program will need to be reduced or the contribution rate will need to increase. The findings from the survey can be accessed from through the skeleton weed review section of our website.

General communications

The IMC have undertaken various communication activities over the year. The main aims of the communications were to:

• Ensure Scheme participants were aware of the IFS area of operation, contribution rate, programs and activities.
• Encourage industry feedback on the operation of the Scheme and functioning of the IMC.

Communication activities undertaken include:

• Talks at various grower/industry group meetings.
• Information brochures available at major field days.
• Several media releases resulting in articles in the rural press and rural radio interviews.
• Articles in regional AgMemos and other industry newsletters.
• Participation in the 2014 Skeleton Weed Debrief.
• Continued maintenance of the IFS information on the DAFWA website.

Monitoring the IFS-funded programs

Program development and implementation

The development of the annual IFS-funded programs was undertaken in conjunction with DAFWA. The key aim of the IMC input was to ensure that each program included suitable activities, outcomes and key performance indicators to meet industry’s expectations and needs. Over the course of the year, the Program Managers provided the IMC with comprehensive quarterly updates to inform the Committee of the work undertaken, issues and successes.

Determination of 2014/15 Scheme

During April 2014, the IMC confirmed the continuation of the Skeleton Weed Control Program and Bedstraw Eradication Program into 2014/15. To fund these programs, contribution rates of 30 cents per tonne for grain and seed, and 15 cents per tonne for hay were recommended to the Minister for Agriculture and Food. These rates were to apply to the first sale of grain, seed and hay produced within the WA agricultural areas.

The Minister endorsed the program, contribution rates and the area of operation, as published in the Western Australian Government Gazette (no. 75, 23 May 2014).

Compensation for foregone production

As part of the IFS-funded Bedstraw Eradication Program, ‘Approved Programs’ were developed and put into operation on areas quarantined due to the presence of three-horned bedstraw. These approved programs, which detail the management of the quarantined areas over the course of the year, were specifically designed to achieve the eradication of bedstraw; however, the specified management practices can result in reduced production from the quarantined areas. As such, the affected landholder/s may apply to the IMC for compensation for foregone production.

During 2013/14, two applications for compensation were made to the IMC. Both applications were accepted by the IMC and offers of compensation were made. The offers were accepted by the landholders.

Monitoring remittances on the sale of hay

From 1 July 2012, Grains, Seeds and Hay IFS contributions were collected on the sale of hay. Given that this was a completely new charge for hay producers, the IMC has continued to actively monitor the remittance of contributions to ensure compliance with the regulations and maximise the funds available to address biosecurity issues of concern to the industry. Where discrepancies have occurred, the IMC have followed these up with the company to successfully resolve the situation.

Goal 2: Maintain an equal partnership with state government

Clear roles and responsibilities

A document clarifying the roles and responsibilities of the different stakeholders involved in the Grains, Seeds and Hay Industry Funding Scheme was developed, negotiated and agreed to by the IMC (as overseers of the Scheme) and DAFWA (as deliverers of the IFS-funded programs). The roles and responsibilities of other stakeholders under the regulations were also identified and collated.

Liaising with state government

The IMC identified strong, formal relationships with the Minister for Agriculture and Food and the Director General of DAFWA as critical to the ongoing success of the IFS. As the Scheme is grounded in legislation, it is important that the state government are fully aware of the ongoing operations, activities and issues that have arisen. Furthermore, the Minister and Director General rely on the IMC for advice in discharging their obligations under the IFS regulations.

Both the Minister and Director General were kept up-to-date with the key work undertaken, particularly the development, implementation and outcomes of the Skeleton Weed Survey, which resulted in recommendations for the 2014/15 IFS contribution rate. A formal meeting between the IMC Chair and the Minister also took place during the year, to discuss the Scheme and the work being undertaken.

Other activities

Strategic planning

The Committee endorsed the Strategic Plan for the Grains, Seeds and Hay IFS, and developed an Action Plan to focus activities that will help achieve the IMCs goals. The strategic plan can be found at the grains, seeds and hay strategic plan webpage.

Bedstraw eradication plan

A state-wide eradication plan for Bedstraw is currently being prepared by DAFWA. The plan will provide a consistent and structured approach to the eradication of known infestations, and any infestations found in the future. The Committee has been actively involved in its development to ensure the plan complements the bedstraw program being funded by the IFS on behalf of the WA grains, seeds and hay industries.

Effectiveness of the Scheme

A total of $4 625 044 in contributions to the Grains, Seeds and Hay Industry Funding Scheme were received during 2013/14.

Only 12 producers opted out of the Scheme in 2013/14, compared to 11 in 2012/13, 16 in 2011/12 and 45 in 2010/11 (Figure 1). The opt-out rate appears to be plateauing, with more than 99% of Western Australian grain/seed/hay producers participating in the Scheme. This may be indicative of the value of the Scheme to the grains, seeds and hay industries.

All 12 producers that opted out of the Scheme in 2013/14 applied for a refund of their contributions. These refunds amounted to $25 818.

Figure 1 Chart showing how many producers opted out of the scheme

The IMC is aware that some grain/seed/hay receivers — particularly those based interstate — may not be aware of the requirements under Western Australian legislation for them to deduct and remit IFS contributions. The IFS contributions apply to the sale of all grain, seed and hay produced within the agricultural region of Western Australia — whether it is sold in WA or interstate.

A list of Registered Receivers can be accessed from the deduction and remittance of contributions webpage. The IMC would like to be advised of any produce receivers that are not included on this list so they can be informed of the legislated requirements.

2013/14 biosecurity programs

Contributions collected via the Grains, Seeds and Hay IFS were used to fund programs to control the spread of skeleton weed and eradicate three-horned bedstraw. The 2013/14 programs were delivered by DAFWA at a total cost of $3 208 523.

Skeleton weed control program

Skeleton weed (Chondrilla juncea L) is a pest of pastures, crops and native bush. It can severely reduce yields by successfully competing with crops and pastures for moisture, nutrients and light, and the plants’ tough wiry stems impede harvesting. The Skeleton Weed Control Program is a coordinated program aimed at controlling the spread of the weed, and provides benefits to owners/managers of both infested and non-infested properties.

The 2013/14 Skeleton Weed Control Program undertook ground searches covering 409 030ha. The total area infested with skeleton weed has reduced from 2518ha in 2012/13 to 1440 in 2013/14. Furthermore, the number of new finds was relatively low at 58, compared to 95 in 2012/13.

At the end of 2013/14, 940 properties were known to be infested with skeleton weed in the Western Australian agricultural area (Fig. 2). A total of 58 newly infested properties were reported, and the weed was eradicated from 44 properties.

Figure 2 Location of skeleton weed infestations

The program allocated most of its budget to provide support to landholders in the form of search assistance; funding for Local Action Groups to implement local strategies to deal with skeleton weed; the provision of winter herbicide treatments and chemicals; and other support activities for infested properties.

Landholder auditing and compliance was another major part of the program during 2013/14. The IMC decision to make this a larger part of the program was influenced by the belief in providing value for money to the Scheme participants and accountability for the use of industry funds, as well as the IMCs commitment to minimising the spread of the weed.

The total cost of the 2013/14 program was $3 052 000.

The Skeleton Weed Program 2013/2014: Report to grain, seed and hay growers can be accessed from the IFS reports webpage.

Bedstraw eradication program

Three-horned bedstraw (Galium tricornutum) is a competitive climbing plant that can cause considerable yield loss in crops, and its seeds are contaminants of fodder and grain. Bedstraw is targeted for eradication in Western Australia — that is, any bedstraw plants found in the state must be destroyed.

Through the Grains, Seeds and Hay Industry Funding Scheme, bedstraw eradication activities were delivered on the three properties under quarantine. In conjunction with the landholders with the two largest infestations, the Program developed and implemented management plans that were tailored to each property. These plans, or ‘Approved Programs’, specified the management practices to occur on the quarantined areas, and were specifically designed to achieve eradication of bedstraw.

In early 2014, one property was released from quarantine. No further spread of bedstraw occurred within or from the two remaining infested properties. Herbicide treatments applied to the areas have prevented bedstraw seed production by destroying seedlings and mature plants. There are also encouraging signs that the soil-borne bedstraw seed bank is declining at both properties.

The total cost of the 2013/14 program was $156 523. This does not include any amounts of compensation — compensation was paid via the IFS rather than the program funds.

The Bedstraw Eradication Program 2013/2014: Report to industry can be accessed from the IFS reports webpage.

2013/14 financial details

The IFS finances are administered by the Director General of DAFWA through an agency special purpose account called the Grains, Seeds and Hay Industry Declared Pest Control and Compensation Account (the IFS Account), which was established by regulation under the Financial Management Act 2006. DAFWA manages these funds on behalf of the IMC and prepares financial reports including the end of financial year statements.

• The balance of the IFS Account was $6 007 782 at the end of the 2013/14 financial year.
• Issues with DAFWAs financial management system throughout 2013/14 meant reimbursements to DAFWA for the work carried out on the IFS-funded programs could not occur at the end of each quarter. As such, reimbursement for some of the 2013/14 program expenses will be paid from the IFS Account during the 2014/15 financial year.
• The total cost of the 2013/14 Skeleton Weed Control Program was $3 052 000 and $156 523 for the Bedstraw Eradication Program.
• Industry contributions to the IFS totalling $4 625 044 were received by DAFWA in 2013/14; however, $25 818 of this was reimbursed to growers that had opted out of the Scheme.
• Interest applied to the funds during 2013/14 amounted to $147 913.
• The activities of the IMC, such as travel and committee meeting costs, resulted in expenditure of $37 131, and compensation payments totalling $131 244 were made during the year.

Table: Grains, Seeds and Hay IFS finances for the 2013/14 financial year.

Future directions for 2014/15

In partnership with DAFWA, the Grains, Seeds and Hay IMC will continue to manage and monitor the programs it has in place for the control of skeleton weed and the eradication of three-horned bedstraw.

The 2014/15 year will see an additional two compliance officers employed through the Skeleton Weed Program. These positions will largely undertake property audits to ensure that landholders meet their obligations with regard to managing skeleton weed. In addition, a collaborative research project with UWA will be conducted. The research will focus on modelling the distribution of skeleton weed to help the program better predict where the weed will spread. It is expected that this research will improve efficiencies by helping target surveillance activities.

In terms of three-horned bedstraw, the Grains, Seeds and Hay IFS will be partnering with CBH to deliver critical bedstraw surveillance activities during 2014/15. The work will involve the screening of 5000 grain samples across 16 priority sites. The screening will make use of innovative image analysis technology (EyeFoss) for the early detection of significant weeds.

In early 2015, the IMC will be required to review the current programs in order to provide advice to the Minister on the 2015/16 IFS contribution rate and area of operation. The future of the Skeleton Weed Program will be of particular interest, as the structure of the program is heavily dependent on the level of IFS contributions. The IMC will continue to ensure that the programs are developed and delivered in-line with the expectations of the WA grain, seed and hay industries.

The Committee will continue to keep informed on the State Bedstraw Eradication Plan to ensure it complements the bedstraw program being funded by the IFS on behalf of the WA grains, seeds and hay industries.

As per the IFS regulations, the Minister will be undertaking a review of the Grains, Seeds and Hay Industry Funding Scheme during 2014/15 to determine whether the Scheme should continue beyond 30 June 2015. The Minister will be consulting the industry to identify whether the continuation of the Scheme is likely to be of benefit to the WA grains, seeds and hay industries, and this should form the basis for a decision.

The Grains, Seeds and Hay Industry Funding Scheme is an industry-controlled scheme. As such, the IMC always welcomes industry feedback on the Scheme, its programs and grain/seed/hay issues in general. Industry can contact the IMC at any time through the Executive Officer. The IMC is keen to hear the industry’s views on the risks and opportunities within the biosecurity arena, and members are available to participate in industry forums, meetings and field days to discuss the Scheme and answer any questions from industry.