Bergin said in a statement that the IFA has received approximately 300 refund submissions from levy-paying farmers since the organisation’s secretary general and president resigned last November over pay and governance issues.

It will take some time to establish an accurate picture of the impact on the levy income

“Due to a number of factors (time lag, frequency of payment, change in market prices, etc), it will take some time to establish an accurate picture of the impact on the levy income,” the IFA said in a statement, adding that the fall in agricultural commodity prices also had an impact.

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Levies are collected as a percentage of payments made to farmers for their products by more than 200 marts, factories and merchants in all sectors. The deduction, called the EIF contribution, is voluntary and farmers can opt out if they do not want to pay it. It funds the IFA, Macra and the ICMSA.

The IFA raised €4.7m through levies last year. If confirmed for the whole of 2016, a 12% drop in levies would leave a hole of half a million euro in the organisation’s budget.

“We have undertaken to meet all levy partners and a number of matters are being discussed,” the IFA said, including an audit to confirm “the money collected from farmers for IFA, the money transferred to IFA and administration fees, if any”.

The organisation also plans to inform levy partners of the steps taken to strengthen governance and to “identify means of rebuilding the collection rates”.

Election issue

Members have raised the issue of levies at nearly all public debates held around the country ahead of next month’s election.

All presidential candidates have pledged to review the system quickly if they are elected, while warning that doing away with them would pose a challenge to the IFA’s funding.

Candidates for deputy president have more varied views, with Nigel Renaghan suggesting that a wide uptake of IFA Telecom by farmers could replace revenue from the levies.

Richard Kennedy has said that a vote could take place to get members’ views on levies, and suggested collecting levies directly from willing farmers who sign up to them rather than through marts and processors.

Pat Farrell, too, has called for a members’ vote on the issue, but warned that levies would not be easily replaced.

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528 farmers cancel IFA membership