History and Purpose of the South Australian Grain Industry Trust Fund
The South Australian Grain Industry Trust Fund (SAGIT) contributes research dollars to the South Australian grains industry with funds from a voluntary levy and investment returns.
The following is an explanation of what happens to the voluntary research levy paid on all grains grown in South Australia.
Before the Grains Research and Development Corporation was formed, the levies were all combined and allocated via the Wheat and Barley Research Committees in South Australia. With the formation of GRDC, the collection and distribution of compulsory research levies was centralised through Canberra.
The United Farmers and Stockowners (now South Australian Farmers Federation) sought to have control of the voluntary research levy plus any reserves capital returned to SA and thus, in 1991, the South Australian Grain Industry Trust Fund (or SAGIT) was established.
The voluntary levy (20c per tonne in 2008) is now directed into this fund. SAGIT is operated under a Trust Deed which was established in 1991. There are four trustees - three of whom are growers nominated by SAFF Grains council and one of whom is nominated by the Minister for Primary Industries. SAGIT has contracted provision of its services to Deloitte in conjunction with Thomas Project Services.
SAGIT is funded by all SA grain producers for the benefit of SA grain producers. The money is over and above funding from GRDC, so South Australian growers get the benefit of their own wisdom in contributing a bit more for research.
South Australia is the only state with such a voluntary levy and is the envy of the others.
Under the terms of its Trust Deed, the trust is required to apply the funds for research and development into the growing, harvesting, storage, processing and marketing of grain in SA and for the dissemination of technical information to the State's grain industry. A Project Management Committee has been formed which comprises the Trustees, plus two members nominated by the SAFF Grains Council Executive.
The Grains Trust is currently funding over $1,300,000 worth of research in SA per year with part being provided from the earnings of the Trust's invested capital (the initial money that was returned to SA in 1991) and the remainder from the continuing research levies paid each year. In the past ten years SAGIT has invested more than $11,000,000 in research on behalf of SA farmers.
Funds are allocated following an annual call for projects, according to clear research, development and extension priorities, and using a rigorous selection process. Care is taken to select projects with clear outcomes for producers, whilst still encouraging innovation by scientists.
The majority of research projects funded are currently being done by the South Australian Research and Development Institute and the University of Adelaide, although a number of other institutions and individual providers also receive funding. All SAGIT projects leverage resources or funds from the research bodies which further enhances the value growers are getting for their levy.
Many of the current projects are directly to do with wheat or barley, as it is these crops from which the majority of the funds have been collected. However significant funding is being directed towards pulses, oilseeds, other cereals and pastures. Grain producers will still benefit from this research, because most producers incorporate the other crops as an important part of their rotations.
Opportunities to jointly fund projects with GRDC or other parties are pursued where this can be shown to be in the best interest of SA producers.
The Grains Trust reports annually to both the Minister for Primary Industries and to the Annual Conference of the SAFF Grains Council. In 2005 the Trust employed a part-time Project Manager, who is now the main contact for any enquiries regarding the Trust Fund.
Peter Kuhlmann
Chairman, SA Grain Industry Trust
