Reprint as at 19 December 2018
(LI 2018/81)
Patsy Reddy, Governor-General
At Wellington this 21st day of May 2018
Present:Her Excellency the Governor-General in Council
Changes authorised by subpart 2 of Part 2 of the Legislation Act 2012 have been made in this official reprint.
Note 4 at the end of this reprint provides a list of the amendments incorporated.
This order is administered by the Ministry for Primary Industries.
This order is made under section 4 of the Commodity Levies Act 1990—
on the advice and with the consent of the Executive Council; and
on the recommendation of the Minister of Agriculture given in accordance with sections 5 and 6 of that Act.
This order is the Commodity Levies (Arable Crops) Order 2018.
This order comes into force on 1 July 2018.
Order: confirmed, on 19 December 2018, by section 10(d) of the Subordinate Legislation Confirmation Act (No 2) 2018 (2018 No 56).
In this order, unless the context otherwise requires,—
Act means the Commodity Levies Act 1990
arable crops or crops—
means the following crops harvested:
grain cereal, legume, and pulse grain crops:
herbage seed crops:
oilseeds:
crops grown for seed or for seed multiplication for use in New Zealand or overseas:
hybrid and open pollinated vegetable and flower seeds; but
excludes the following crops:
maize grain, maize silage, and cereal silage:
tree and fruit crops
collection agent—
means a person whose business is or includes buying arable crops from a grower for resale; and
includes—
a person who buys arable crops grown under contract:
a person who buys arable crops for the purpose of 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 year means,—
for the first levy year, the period that begins on 1 July 2018 and ends on 31 December 2018; and
for all levy years other than the first and the last levy years, a period of 12 months that begins on 1 January and ends on 31 December
mediator means—
a person appointed under clause 25; and
for a particular dispute, the mediator appointed to resolve the dispute
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:
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:
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:
in relation to any other arable crops, the price of the crops at the first point of sale.
(1)
This order imposes a levy on arable crops.
(2)
The levy must be paid to FAR.
Growers of arable crops are primarily responsible for paying the levy.
A grower is exempt from paying the levy in a levy year if—
the grower uses the arable crops in their farming operation; and
the amount of levy that would be payable on the arable crops in that levy year does not exceed $50 (excluding GST).
A collection agent who buys arable crops from a grower—
must pay the levy (including any GST payable on it) on the arable crops; and
may recover the levy (and any GST payable on it) from the grower by—
deducting the amount of levy from the collection agent’s payment to the grower at the first point of sale; or
recovering the amount as a debt due to the collection agent from the grower.
A collection agent who pays the levy to FAR may deduct from the levy a collection fee of not more than 1% of the amount of levy collected (excluding GST) plus the GST payable on the fee.
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 concerned to the Director-General.
The Director-General must pay the amount to FAR.
The due date for payment of an amount of levy on any quantity of arable crops is,—
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
if the arable crops are not sold, the date on which the crops were assigned for use within the grower’s farming operation.
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 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:
(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 dates:
1 January to 31 March:
1 April to 30 June:
1 July to 30 September:
1 October to 31 December.
If a grower or collection agent does not pay an amount of levy money by the required date, the grower or collection agent must pay FAR,—
for the first month, a further 5% of the unpaid amount; and
for each subsequent month that the amount (or part of the amount) remains unpaid after the required date, a further 1% of the amount of the unpaid levy.
Any additional levy imposed under subclause (1) that remains unpaid is not itself subject to subclause (1).
FAR must calculate the levy payable in a levy year on the basis of the selling price of the arable crops.
FAR may set different rates of levies for different classes of arable crops.
The maximum rate of the levy is 1.5% of the selling price.
The levy on arable crops for the first levy year is—
0.9% of the selling price for all grain and seed; and
0.6% of the selling price for all hybrid vegetable seeds.
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.
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.
As soon as practicable after fixing a levy rate for a levy year, FAR must notify that rate—
in its newsletter to growers and collection agents; and
in the Gazette; and
on its Internet site.
FAR must—
spend all the levy money paid to it; and
invest all levy money until it is spent.
FAR may spend levy money for all or any of the following purposes relating to arable crops or growers:
research and development:
education and training:
collection, collation, and publication of information:
day-to-day administration of FAR.
FAR must not spend levy money on commercial or trading activities.
Each levy year, FAR must consult growers on how it proposes to spend levy money.
FAR may use the following methods to consult growers:
discussions with local arable research groups and grower research committees:
annual meetings, seminars, and field days.
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.
Each grower and collection agent must, as soon as is reasonably practicable after receiving a request from FAR, supply FAR with a written return of the information requested.
A grower who sells arable crops must, in each levy year, keep records of—
each quantity of arable crops sold; and
the price paid for each quantity of arable crops; and
the name and address of the buyer of each quantity of arable crops; and
the amount of levies paid.
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—
the quantity of arable crops assigned for use or processed (as the case may be); and
in the case of arable crops assigned for use within the grower’s farming operation, the purpose that the quantity of arable crops was assigned for.
A collection agent must, in each levy year, keep records of,—
for each grower from whom the collection agent bought arable crops,—
each quantity of arable crops bought from the grower; and
the grower’s name and address; and
each amount of levy money paid to FAR and the date of each payment.
FAR must, in each levy year, keep records of, —
for each amount of levy money received,—
the amount received; and
the date on which it was received; and
the name and address of the person who made the payment:
how the levy money was spent and invested.
The records required by clauses 20 to 22 must be kept for at least 2 years after the end of the levy year to which they relate.
This clause applies to information obtained—
under or because of this order; or
under the Act in relation to this order.
A person must not disclose information to anyone other than an officer or employee of FAR unless the disclosure is—
the giving of evidence in any legal proceedings taken in relation to this order; or
required by law; or
the production of records or accounts under section 17(1) of the Act; or
the production of any statement under section 25 of the Act.
FAR may disclose information—
for the following purposes:
statistical or research purposes that do not involve the disclosure of personal information:
invoicing or collecting the levy; and
as required by law; and
if every identifiable person to whom the information relates consents.
This clause applies to a dispute about—
whether a person is required to pay the levy; or
the amount of levy payable.
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.
If asked, the President, or a person authorised by the President, may appoint a person to resolve the dispute by mediation.
The mediator’s appointment ends if—
the parties to the dispute resolve it by agreement; or
the mediator resolves the dispute under clause 32.
A mediator must be paid remuneration (by way of fees and allowances) as agreed by the parties to the dispute.
If the parties to a dispute cannot agree on a mediator’s remuneration, the President of the Arbitrators and Mediators Institute of New Zealand Incorporated, or a person authorised by the President, must—
fix an amount or several amounts to be paid to the mediator as remuneration; and
specify the amount (if any) that each party must pay.
Each party must pay to the mediator the amount or amounts fixed and specified under subclause (2).
A mediator must—
organise the date, time, and place for each conference to be held by the mediator; and
notify the parties by post or email; and
preside at the conference.
Unless clause 29 applies, only the parties to a dispute may attend a conference with the mediator.
A mediator may allow a representative of a party to a dispute to attend a conference with the mediator if the mediator is satisfied that it is appropriate to do so in all the circumstances.
Each person who attends a conference may be heard at the conference.
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.
A mediator may, on their own initiative,—
seek and receive any evidence that they think desirable to resolve the dispute; and
make any investigations and inquiries that they think desirable to resolve the dispute.
A mediator may require a person giving evidence at a conference to verify the evidence by statutory declaration.
A mediator may resolve a dispute for the parties if—
the mediator has organised and presided at a conference of the parties, but the dispute has not been resolved; or
the mediator believes that the parties are unlikely to resolve the dispute, whether or not they confer directly.
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.
The parties must comply with the mediator’s decision.
Each party must pay their own costs in relation to the mediation.
A party to a dispute who is dissatisfied with the mediator’s decision may appeal to a District Court against the decision.
The appeal must be brought by filing a notice of appeal within 28 days after the decision is made or within any longer time that a District Court Judge allows.
The Registrar of the court must—
fix the date, time, and place for the hearing of the appeal; and
notify the appellant and the other parties to the dispute; and
serve a copy of the notice of appeal on every other party to the dispute.
Each party to the dispute may appear and be heard at the hearing of the appeal.
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.
FAR must remunerate a person appointed as an auditor under section 15 of the Act at a rate determined by the Minister of Agriculture after consultation with FAR.
The Commodity Levies (Arable Crops) Order 2012 (SR 2012/161) is revoked.
Michael Webster,Clerk of the Executive Council.
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 2018, imposes a levy on arable crops grown in New Zealand for sale or to be used within the grower’s farming operation. Growers are primarily responsible for the payment of the levy, but collection agents who buy arable crops from a grower must pay the levy. Collection agents may recover the levy from growers. The levy is payable to the Foundation for Arable Research Incorporated.
Before this order, a levy was imposed on arable crops by the Commodity Levies (Arable Crops) Order 2012. This order revokes and replaces that order. The revocation does not affect amounts of levy money that became payable under that order before the revocation.
This order is a confirmable instrument under section 47B of the Legislation Act 2012. It is revoked at the close of 30 June 2019, unless earlier confirmed by an Act of Parliament. That stated time is the applicable deadline under section 47C(1)(a) of that Act. If this order is confirmed, it will be revoked at the end of 30 June 2024 (the day before the sixth anniversary of the date on which it came into force), unless it is extended under section 13(2) of the Commodity Levies Act 1990.
Issued under the authority of the Legislation Act 2012.
Date of notification in Gazette: 24 May 2018.
This is a reprint of the Commodity Levies (Arable Crops) Order 2018 that incorporates all the amendments to that order as at the date of the last amendment to it.
Reprints are presumed to correctly state, as at the date of the reprint, the law enacted by the principal enactment and by any amendments to that enactment. Section 18 of the Legislation Act 2012 provides that this reprint, published in electronic form, has the status of an official version under section 17 of that Act. A printed version of the reprint produced directly from this official electronic version also has official status.
Editorial and format changes to reprints are made using the powers under sections 24 to 26 of the Legislation Act 2012. See also http://www.pco.parliament.govt.nz/editorial-conventions/.
Subordinate Legislation Confirmation Act (No 2) 2018 (2018 No 56): section 10(d)