Commodity Levies (Arable Crops) Order 2024
Some amendments have not yet been incorporated. View upcoming amendments here
Version as at 24 December 2024
Commodity Levies (Arable Crops) Order 2024
(SL 2024/66)
Cindy Kiro, Governor-General
Order in Council
At Wellington this 13th day of May 2024
Present:
Her Excellency the Governor-General in Council
Note
The Parliamentary Counsel Office has made editorial and format changes to this version using the powers under subpart 2 of Part 3 of the Legislation Act 2019.
Note 4 at the end of this version provides a list of the amendments included in it.
This order is administered by the Ministry for Primary Industries.
This order is made under section 4 of the Commodity Levies Act 1990—
(a)
on the advice and with the consent of the Executive Council; and
(b)
on the recommendation of the Minister of Agriculture given in accordance with sections 5 and 6 of that Act.
Contents
Order
1 Title
This order is the Commodity Levies (Arable Crops) Order 2024.
2 Commencement
This order comes into force on 1 July 2024.
Order: confirmed, on 24 December 2024, by section 8(a) of the Secondary Legislation Confirmation Act 2024 (2024 No 58).
3 Interpretation
In this order, unless the context otherwise requires,—
Act means the Commodity Levies Act 1990
arable crops or crops—
(a)
means the following crops harvested:
(i)
grain cereal, legume, and pulse grain crops:
(ii)
herbage seed crops:
(iii)
oilseeds:
(iv)
crops grown for seed or for seed multiplication for use in New Zealand or overseas:
(v)
hybrid pollinated and open pollinated vegetable and flower seeds; but
(b)
excludes the following crops:
(i)
maize grain, maize silage, and cereal silage:
(ii)
tree and fruit crops
collection agent—
(a)
means a person whose business is or includes buying arable crops from a grower for resale; and
(b)
includes—
(i)
a person who buys arable crops grown under contract:
(ii)
a person who buys arable crops from a grower for resale as a constituent part of a compound
Director-General means the chief executive of the Ministry for Primary Industries
FAR means the industry organisation that, on the commencement of this order, was known as the Foundation for Arable Research Incorporated
grower means a person whose business is or includes growing arable crops
GST means goods and services tax payable under the Goods and Services Tax Act 1985
levy means the levy imposed by clause 4
levy money means the money paid or payable under this order as a levy
levy rate means the rate fixed under clause 7
levy year means,—
(a)
for the first levy year, the period that begins on 1 July 2024 and ends on 31 December 2024; and
(b)
for each subsequent year, the period of 12 months that begins on 1 January and ends on 31 December
selling price means the following prices (excluding GST) before the addition of any storage and freight charges and before the deduction of any costs, commission, or other charges:
(a)
in relation to arable crops grown for seed multiplication, the price that the arable crops would have attracted in field-dressed form in the locality in which the crops are grown:
(b)
in relation to arable crops that are processed before the first point of sale or used in feed lotting or intensive livestock farming or other similar activity within the grower’s farming operation, the price that the crops would have attracted in field-dressed form in the locality in which the crops are grown:
(c)
in relation to any other arable crops, the price of the crops at the first point of sale.
Levy imposed
4 Levy on arable crops
(1)
A levy is imposed on arable crops.
(2)
The levy is payable to FAR.
(3)
Growers of arable crops are primarily responsible for paying the levy.
(4)
A collection agent who buys arable crops from a grower—
(a)
must pay the levy (including any GST payable on it) on the arable crops; and
(b)
may recover the levy from the grower (see clause 12).
5 Exemption from paying levy
A grower is exempt from paying the levy in a levy year if—
(a)
the grower uses the arable crops in their farming operation; and
(b)
the amount of levy that would be payable on the arable crops in that levy year does not exceed $50 (excluding GST).
Levy rate
6 Basis for calculating levy
FAR must calculate the levy payable in a levy year on the basis of the selling price of the arable crops.
7 Levy rate
(1)
For the first levy year, the levy on arable crops is—
(a)
0.9% of the selling price for all grain and seed; and
(b)
0.6% of the selling price for all hybrid vegetable seeds.
(2)
For each subsequent levy year, FAR must fix the levy rate or rates before the start of the levy year in accordance with its decision-making rules.
(3)
If FAR does not fix the levy rate before the start of a levy year, the levy rate for that year is the rate most recently fixed under this clause.
(4)
FAR may fix different levy rates for different classes of arable crops.
(5)
The maximum rate of the levy is 1.5% of the selling price.
8 Notifying levy rate
As soon as practicable after fixing a levy rate for a levy year, FAR must notify that rate—
(a)
in its newsletter or other publication to growers and collection agents; and
(b)
in the Gazette; and
(c)
on its internet site.
Paying levy
9 Due and latest dates for payments
(1)
The due date for payment of the levy on any quantity of arable crops is,—
(a)
if the arable crops (including arable crops processed by the grower) are sold, the date on which payment for that quantity becomes due to its grower or is made to the grower (whichever is earlier); or
(b)
if the arable crops are not sold, the date on which the crops are assigned for use within the grower’s farming operation.
(2)
If an amount of levy payable for a month is $2,000 or greater (excluding GST), the latest date for payment is the last day of the month following the due date for payment.
(3)
If an amount of levy payable for a month is less than $2,000 (excluding GST), the payer may choose to pay in accordance with subclause (2) or combine the levy payment for the month with levy payments for 1 or more subsequent months in the same quarter, in which case the latest date for payment is as follows:
| Combined levy | Latest date for payment | |
|---|---|---|
| Combined levy comprising payments for the first and second months of a relevant quarter and that is $2,000 or more plus GST | Last day of the third month of the relevant quarter | |
| Combined levy comprising payments for the first and second months of a relevant quarter and that is less than $2,000 plus GST | Last day of the month following the close of the relevant quarter | |
| Combined levy comprising payments for the second and third months of a relevant quarter (regardless of the amount) | Last day of the month following the close of the relevant quarter | |
| Combined levy comprising payments for the first, second, and third months of a relevant quarter (regardless of the amount) | Last day of the month following the close of the relevant quarter |
(4)
To avoid doubt, the latest date for payment of a levy relating to the third month of a relevant quarter (regardless of the amount and whether it is part of a combined levy) is the last day of the month following the close of the relevant quarter.
(5)
In this clause, relevant quarter means (as applicable) the following periods:
(a)
1 January to 31 March:
(b)
1 April to 30 June:
(c)
1 July to 30 September:
(d)
1 October to 31 December.
10 Additional levy for late payment
(1)
If a grower or collection agent does not pay an amount of levy money by the latest date for payment, the grower or collection agent must pay FAR,—
(a)
for the first month, an additional levy of 5% of the unpaid amount; and
(b)
for each subsequent month that the amount (or part of the amount) remains unpaid after the required date, an additional levy of 1% of the unpaid amount.
(2)
Any additional levy imposed by subclause (1) that remains unpaid is not itself subject to subclause (1).
11 Conscientious objectors
(1)
A grower or collection agent who objects on conscientious or religious grounds to paying the levy in the manner provided for in this order may pay the amount to the Director-General.
(2)
The Director-General must pay the amount to FAR.
Recovery of levy from growers
12 Collection agent may recover levy from growers
A collection agent may recover the amount of any levy paid (including any GST payable on it)—
(a)
from the grower as a debt due to the collection agent; or
(b)
by deducting the amount from the collection agent’s payment to the grower at the first point of sale.
Fee for collecting levy
13 Collection agent may charge FAR collection fee
(1)
A collection agent who pays the levy to FAR may charge a collection fee of not more than 1% of the amount of levy collected (excluding GST).
(2)
A collection agent may recover the collection fee in subclause (1) by deducting from the collection agent’s levy payment to FAR—
(a)
the collection fee (excluding GST); and
(b)
the GST payable on the collection fee.
Spending levy money
14 FAR must spend levy money
FAR must—
(a)
spend all the levy money paid to it; and
(b)
invest all levy money until it is spent.
15 Purposes for which levy money may be spent
(1)
FAR may spend levy money for any or all of the following purposes relating to arable crops or growers:
(a)
research and development:
(b)
education and training:
(c)
collection, collation, and publication of information:
(d)
day-to-day administration of FAR.
(2)
See section 10(1) of the Act, which prohibits the use of levy money for commercial or trading purposes.
16 Consulting on spending levy money
Each levy year, FAR must consult growers on how it proposes to spend levy money, using the following methods:
(a)
discussions with local arable research groups:
(b)
discussions with grower research committees:
(c)
annual meetings:
(d)
seminars:
(e)
field days.
Returns
17 Growers and collection agents must make returns to FAR
(1)
FAR may request, in writing, from each grower and collection agent any information that FAR reasonably requires to determine the amount of levy payable by the grower or collection agent.
(2)
As soon as is reasonably practicable after receiving a request from FAR, each grower and collection agent must supply FAR with a written return of the information requested.
Records
18 Growers must keep records
(1)
A grower who sells arable crops must, in each levy year, keep records of—
(a)
each quantity of arable crops sold; and
(b)
the price paid for each quantity of arable crops; and
(c)
the name and address of the buyer of each quantity of arable crops; and
(d)
each amount of levy money paid to FAR and the date of each payment.
(2)
A grower who assigns any quantity of arable crops for use within the grower’s farming operation or processes the arable crops before sale must, in each levy year, keep records of—
(a)
the quantity of arable crops assigned for use or processed (as the case may be); and
(b)
in the case of arable crops assigned for use within the grower’s farming operation, the purpose for which the quantity of arable crops was assigned.
19 Collection agents must keep records
A collection agent must, in each levy year, keep records of,—
(a)
for each grower from whom the collection agent bought arable crops,—
(i)
each quantity of arable crops bought; and
(ii)
the price paid for each quantity of arable crops; and
(iii)
the grower’s name and address; and
(b)
each amount of levy money paid to FAR and the date of each payment.
20 FAR must keep records
FAR must, in each levy year, keep records of,—
(a)
for each amount of levy money received,—
(i)
the amount received; and
(ii)
the date on which it was received; and
(iii)
the name and address of the person who made the payment; and
(b)
how the levy money was spent and invested.
21 Records must be kept for 2 years
The records required by clauses 18 to 20 must be kept for at least 2 years after the end of the levy year to which they relate.
Confidentiality
22 Confidentiality of information
(1)
No officer or employee of FAR, and no other person who gathers information, may disclose (other than to some other officer or employee of FAR) any information obtained—
(a)
under this order; or
(b)
under the Act in relation to this order.
(2)
Subclause (1) does not affect or prevent—
(a)
the production of records or accounts under section 17(1) of the Act; or
(b)
the production of any statement under section 25 of the Act; or
(c)
the giving of evidence in any legal proceedings relating to this order or the Act.
(3)
Subclause (1) does not prevent FAR from disclosing or using information—
(a)
for statistical or research purposes that do not involve the disclosure of personal information; or
(b)
to assist with the collection of the levy; or
(c)
if every identifiable person to whom it relates consents to its disclosure; or
(d)
as required by law.
Dispute resolution
23 Mediation of disputes
(1)
This clause applies to a dispute about—
(a)
whether a person is required to pay the levy; or
(b)
the amount of levy payable.
(2)
A party to the dispute may ask the President of the Arbitrators and Mediators Institute of New Zealand Incorporated to appoint a person to resolve the dispute by mediation, in which case the provisions in the Schedule apply.
Compliance audits
24 Remunerating auditors
FAR must remunerate a person appointed as an auditor under section 15 of the Act in relation to this order at a rate determined by the Minister of Agriculture after consultation with FAR.
Revocation
25 Commodity Levies (Arable Crops) Order 2018 revoked
The Commodity Levies (Arable Crops) Order 2018 (LI 2018/81) is revoked.
Schedule Mediation of disputes
1 Appointing mediators
(1)
If asked by a party to a dispute under clause 23(2) of this order, the President of the Arbitrators and Mediators Institute of New Zealand Incorporated (or a person authorised by them) may appoint a person to resolve the dispute by mediation.
(2)
A mediator’s appointment ends if—
(a)
the parties resolve the dispute by agreement; or
(b)
the mediator resolves the dispute under clause 7 of this schedule.
2 Remunerating mediators
(1)
The parties to a dispute must pay remuneration to the mediator (by way of fees and allowances) as agreed by the parties.
(2)
If the parties cannot agree on a mediator’s remuneration, the President of the Arbitrators and Mediators Institute of New Zealand Incorporated (or a person authorised by them) must—
(a)
fix an amount or several amounts to be paid to the mediator as remuneration; and
(b)
specify the amount (if any) that each party must pay.
(3)
Each party must pay the amounts fixed and specified under subclause (2) to the mediator.
3 Conferences under control of mediator
A mediator must—
(a)
organise the date, time, and place for each conference to be held by the mediator; and
(b)
notify the parties by post or email; and
(c)
preside at the conference.
4 Attendance at conferences
(1)
Only the parties to a dispute may attend a conference with the mediator, unless subclause (2) applies.
(2)
A mediator may allow a representative of a party to a dispute to attend a conference if the mediator is satisfied that it is appropriate to do so in all the circumstances.
5 Right to be heard
Each person who attends a conference may be heard at the conference.
6 Evidence
(1)
A mediator may hear and take into account any relevant evidence or information, whether or not it would be admissible in a court of law.
(2)
A mediator may, on their own initiative,—
(a)
seek and receive any evidence that they think desirable to resolve the dispute; and
(b)
make any investigations and inquiries that they think desirable to resolve the dispute.
(3)
A mediator may require a person giving evidence at a conference to verify the evidence by statutory declaration.
7 Mediator may resolve dispute in certain cases
(1)
A mediator may resolve a dispute for the parties if—
(a)
the mediator has organised and presided at a conference of the parties, but the dispute has not been resolved; or
(b)
the mediator believes that the parties are unlikely to resolve the dispute, whether or not they confer directly.
(2)
A mediator who resolves a dispute under subclause (1) must give each party written notice of the mediator’s decision and the reasons for the decision.
(3)
The parties must comply with the mediator’s decision.
8 Mediation costs
Each party must pay their own costs in relation to the mediation.
9 Appeal to District Court
(1)
A party to a dispute who is dissatisfied with the mediator’s decision may appeal to the District Court against the decision.
(2)
The appeal must be brought by filing a notice of appeal—
(a)
within 28 days after the decision is made; or
(b)
within any longer time that a District Court Judge allows.
(3)
The Registrar of the court must—
(a)
fix the date, time, and place for the hearing of the appeal; and
(b)
notify the appellant and the other parties to the dispute of the date, time, and place; and
(c)
serve a copy of the notice of appeal on every other party to the dispute.
(4)
Each party to the dispute may appear and be heard at the hearing of the appeal.
(5)
The District Court may confirm, vary, or reverse the mediator’s decision.
(6)
The filing of a notice of appeal does not operate as a stay of any process for the enforcement of the mediator’s decision.
Rachel Hayward,
Clerk of the Executive Council.
Explanatory note
This note is not part of the order but is intended to indicate its general effect.
This order, which comes into force on 1 July 2024, imposes a levy on arable crops harvested in New Zealand. The levy is payable to the Foundation for Arable Research Incorporated. Although crop growers are primarily responsible for paying the levy, it is also payable by collection agents who buy arable crops from a grower. Collection agents may deduct the amount of the levy from the purchase price of arable crops, or recover the amount as a debt from growers.
Before this order, a levy was imposed on arable crops by the Commodity Levies (Arable Crops) Order 2018. This order revokes and replaces that order. The revocation does not affect amounts of levy money that became payable under that order before it was revoked.
This order must be confirmed by an Act before the close of 30 June 2025. If it is not confirmed, it will be revoked on the close of that date (see subpart 3 of Part 5 of the Legislation Act 2019).
If the order is confirmed, it will be revoked on the close of 30 June 2030, unless it is extended under section 13(2) of the Commodity Levies Act 1990.
Date of notification in Gazette: 16 May 2024.
Notes
1 General
This is a consolidation of the Commodity Levies (Arable Crops) Order 2024 that incorporates the amendments made to the legislation so that it shows the law as at its stated date.
2 Legal status
A consolidation is taken to correctly state, as at its stated date, the law enacted or made by the legislation consolidated and by the amendments. This presumption applies unless the contrary is shown.
Section 78 of the Legislation Act 2019 provides that this consolidation, published as an electronic version, is an official version. A printed version of legislation that is produced directly from this official electronic version is also an official version.
3 Editorial and format changes
The Parliamentary Counsel Office makes editorial and format changes to consolidations using the powers under subpart 2 of Part 3 of the Legislation Act 2019. See also PCO editorial conventions for consolidations.
4 Amendments incorporated in this consolidation
Secondary Legislation Confirmation Act 2024 (2024 No 58): section 8(a)
Amendments not yet incorporated
The most recent version of this secondary legislation does not yet have amendments incorporated from: