Farmers in the Republic of Ireland and Northern Ireland paid a combined €56m in levies and factory fees last year, according to an analysis carried out by the Irish Farmers Journal.

Our analysis shows farmers in the Republic of Ireland paid close to €46m in voluntary and statutory levies, and factory fees last year, while in Northern Ireland, just over £9.1m (€10m) in levies and factory fees were collected.

While levies by their nature appear small per litre or value of output, when totalled across the different sectors they accumulate into tens of millions each year. Given the expansion of meat and milk production in Ireland over the last decade, the amount of money being collected in levies and factory fees has grown in tandem.

Some levies are optional or voluntary charges that farmers can opt out of paying if they so wish, but the majority of levies and factory fees paid by farmers are mandatory or statutory costs that must be paid.

Ireland

In Ireland, almost 70% of all levies collected, which amounts to more than €31m, are mandatory and farmers have no say in whether they can pay them or not. The remaining 30% of levies, which amount to around €15m, are voluntary in nature.

Dairy

There are five significant levies on milk, which totalled over €20m last year. However, the number of levies deducted from most farmers’ milk cheques will depend on what co-op they supply and whether they are contracted liquid milk suppliers or not. Up to 2016, dairy farmers paid almost €7m in annual levies to Ornua but this levy was suspended in 2016 when milk prices were on the floor and has not been reintroduced.

The five main levies paid by Irish dairy farmers are:

  • Department inspection levy (mandatory levy charged at 0.1c/l).
  • Bovine disease eradication levy (mandatory levy charged at 0.06c/l).
  • NDC levy (voluntary levy charged at 0.07c/l).
  • Dairy research levy (voluntary levy charged at 0.04c/l).
  • National Milk Agency levy (mandatory levy for liquid milk suppliers charged at 0.115c/l).
  • By far the largest levy paid by Irish dairy farmers last year was the statutory Department inspection levy, which amounted to just under €8m in 2019. The bovine disease levy generated just under €4.8m, while just over €3.5m was paid by co-ops to fund the NDC levy.

    The voluntary Dairy Research levy is paid by almost all farmers and brought in €2.9m last year to fund research at Moorepark, while the statutory levy used to fund the National Milk collected just under €0.5m last year.

    Beef

    There are four significant levies and factory fees charged on beef animals at the point of slaughter, which typically add up to about €11 per head. For 2019, Irish beef farmers paid just over €19.4m in levies based on a national kill of 1.74m cattle.

    The four main levies on beef cattle are:

  • Veterinary inspection charge (mandatory levy charged at €5/head).
  • Insurance/post-mortem contingency levy (formerly a mandatory levy charged at about €3 per head. Now voluntary).
  • Bord Bia levy – ABB (mandatory levy charged at €1.90 per head).
  • Bovine disease eradication levy (mandatory levy charged at €1.27 per head).
  • ICBF tag levy

    Beef and dairy farmers must also pay a levy of €0.38 on each new tag they purchase for registering new births. While this is technically a voluntary levy, almost every cattle farmer in the country contributes to it. This funding is used to part fund the ICBF and totalled close to €750,000 last year.

    Sheep

    There are five significant levies and factory charges on sheep, which come to just over €3 per head. For 2019, Irish sheep farmers paid €3.2m in levies and factory charges.

    The five levies are:

  • Veterinary inspection charge (mandatory levy charged at €0.50 per head).
  • Bord Bia levy – ABB (mandatory levy charged at €0.25 per head).
  • Sheep Ireland breed programme levy (mandatory levy charged at €0.07 per head).
  • Scrapie levy (mandatory levy charged at €1.05 per head)
  • Specified risk material levy (mandatory levy charged at €1.27 per head).
  • EIF levy

    The EIF levy, which stands for European Involvement Fund, is a voluntary levy paid by farmers and is calculated on a small percentage of the value of the farmer’s sales or output.

    The EIF levy was first introduced in 1973 when Ireland joined the EEC as a means for farmers to fund a permanent office in Brussels to negotiate on all farmers’ behalf.

    Today, the EIF levy mostly goes to the IFA but the ICMSA and Macra also derive some funding from it. In total, farmers contributed in the region of €3m in EIF levies last year. The funds drawn by the EIF levy come from all sectors, with money contributed by dairy, beef, sheep, tillage and pig farmers. However, beef and dairy farmers contribute the majority of EIF levies.

    Northern Ireland

    Beef and sheep

    Beef and sheep farmers in Northern Ireland are typically faced with six levies and factory fees on livestock sent for processing. These are the LMC levy, the AgriSearch levy, as well as charges for grading, veterinary inspections, waste disposal and insurance.

    Beef farmers in Northern Ireland paid an estimated £7.7m (€8.5m) in levies and factory charges last year, while the cost of these charges to sheep farmers in Northern Ireland was just over £0.5m (€0.6m).

    Dairy

    On the dairy side, there are two main charges deducted from milk cheques in Northern Ireland. These are the AgriSearch levy and the Northern Ireland Dairy Council levy. Farmers who contribute to these levies typically pay 0.05p/l on all milk supplied.

    The total levy came to an estimated £800,000 (€880,000) in 2019.

    Grain

    Tillage farmers in Northern Ireland must also pay a mandatory levy of £0.46/t on all grain sold, which is used to fund the AHDB.

    The AHDB grain levy amounted to just over £90,000 (€100,000) in 2019.