Wheat levy dropped for WA farmers

Intergrain has withdrawn the $2 per tonne end point royalty imposed on farmers growing Carnamah wheat after WAFarmers warned it would launch a class action over the levy.

Last week Intergrain advised it would fully refund all EPR deductions on Carnamah wheat and would not impose any deductions in the future.

WAFarmers grains section president Derek Clauson said the organisation had sought legal advice from lawyers Kott Gunning, who found Intergrain's actions were unlawful.

"The levy was unjustifiably imposed after ten years of trading," said Mr Clauson.

"There had been farmer to farmer trading and so there were some farmers who now had the grain who had never actually been under a contract to pay for the grain," he said.

Mr Clauson said the research and development costs were funded when the variety was developed, ten years ago, by the state government and the GRDC, which was partly funded by growers' levies.

Mr Clauson said it had annoyed a number of farmers, not just the ones who were affected by the levy.

"It was seen as just a cash grab by the state government rather than a legitimate research and development cost."

Mr Clauson said WAFarmers was pleased Intergrain had responded to growers' concerns and had alleviated the need for legal action.