Relevant to: Buyers and Growers
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After the price per tonne has been adjusted based on location differentials and payment scales, the overall value of the delivery will be subject to levies and end point royalty deductions. These are calculated as follows:
Levy Deduction
The levy deduction is calculated as a percentage of the farm gate value and the rate depends on the commodity - The rates can be found here: http://www.agriculture.gov.au/ag-farm-food/levies/rates#field-crops. The farm gate value is calculated as the sale value (per tonne) minus a fixed constant that represents storage, handling, freight, and 'free on board' costs. AgriDigital has set this constant as $25. Consequently, the levy deduction can be calculated as follows:
Levy = (Post Adjusted Sale Value per tonne - $25) x Total levy rate x Quantity delivered (metric tonnes).
This value will be deducted from the total value of the sale.
End Point Royalty (EPR) Deduction
Each variety will have it's own EPR rate per metric tonne. The EPR deduction is therefore calculated as the rate that corresponds to the variety in question multiplied by the quantity (in metric tonnes) that is exchanged in the delivery.