Agricultural purchasing group Anglia Farmers is returning more than £72,000 to members to offset the increased income received through its standard levy rate on fertiliser orders.

Members who make a full-commitment to buying all their agricultural inputs pay the group a flat rate levy of 0.75% on their orders. But given the unprecedented rise in fertiliser costs, the flat rate levy became excessive.

Stephen Wright, who farms 530 hectares with his brother at Acle in Norfolk, is a director of Anglia Farmers and chairman of the group’s trading executive, said:

“Anglia Farmers is all about serving its members’ best interests. While we need a strong balance sheet and capital reserves to ensure a good credit rating, we also need to ensure we are not holding on to too much income. It’s a careful balancing act.

“Having ordered 300 tonnes of fertiliser last year when prices went from £150 to £350 per tonne, I realised, along with many other members that we needed to even things out on the levy rate.”

The rebate amounts to 0.2% on fertiliser purchases made in the financial year to 31^st January 2009. Members will be paid this June with a cut off at under £5.

“We sourced almost £38 million of fertiliser for our members last year,” said Mr Wright. “While most farmers are aggrieved by what has been happening in the fertiliser industry, as a group we need to keep the supply chain working and that means being fair to the farmer as well as the fertiliser manufacturer.”