ADF leaves the door open to levy mediation, while preparing for court

Australian Dairy Farmers (ADF) president Ben Bennett said the failure of the Victorian Farmers Federation (VFF) to pay the levies was costing the organisation $1000 day, "which is reasonably significant".

"We want it to be expedited, of course, we have done the patient thing and we need to move on," Mr Bennett said.

"If we are going to mediation, it has to be in good faith, but by crikey time is moving on, for all parties."

It's believed the VFF now owes ADF more than $500,000 in levies, withheld over claims they were not value for money.

"I was under the impression they wanted to expedite the situation, we had a change of driver, they have acknowledged that," he said.

Mr Bennett said the organisation was waiting to finalise the final paperwork, before taking the matter to court.

"We are working through the best pathways for that," he said.

"We need to be doing it in a considered manner."

He said the VFF had acknowledged the high cost of taking legal action, over plans to oust the president and vice president.

Mediation between the two parties was "absolutely our preferred thing," Mr Bennett said.

"But it has to be tangible, it has to be done in good faith.

"We are both representing farmers and must be very mindful this (legal action) is a position of last resort, therefore we should keep that door open."

He rejected the claims the VFF was not getting value for money from ADF.

"ADF was the instigator of the Mandatory Code, if you look at the price differentiation between New Zealand and Australia, for the industry its approximately $1 billion.

"For those with short memories, VFF voted against it [the Code]."

State bodies contributed $500,000 to the ADF - "I would say that would have to be the best return on investment, this side of the black stump.

"But I am not going to reduce the conversation down to minimising the contribution of both organisations to our industry - we are both vital."

Meanwhile, this year's 2022-23 VFF annual report says membership numbers had dropped from 4846 in September 2021 to 3835 last year.

Colin Gilmour, Donald, Vic, said he had been a member "for longer than I can remember".

He grows wheat, barley, lentils, canola and oaten hay.

"Money on legal fees is a waste, isn't it, but it seems to be what they [the board] thinks is the right thing to do, but I don't think it's good," he said.

He didn't know where the whole issue was headed.

"I would have thought if they don't sort things out, there won't be a VFF soon," he said.

"Its pretty important to have a say, on what's going on - it's very important to have a voice with the government, one farmer is not going to be able to change very much."

Grains Council president Craig Henderson, Berriwillock, Vic, said president Emma Germano did not have a mandate.

"The future of agriculture in Victoria is excellent, the future of the VFF, in the short term, is terrible under the current management," he said.

"But it's a bit like a drought, given time we will get over it and we will fix it."

He said there was a pressing need for reform.

"We have to rethink the VFF's our structure, our overheads are too high, the chair and chief executive's salaries represent a large percentage of the membership levy," he said.

"Once we get clean at the top, we will be looking to get new membership under a new leadership, which has the right motives."

He said the Grains Group had $11 million taken from it, "which was put there by the Grains members".

"You would think senior management would look at how the group accumulated this wealth, rather than just taking it, and working out a system to mirror it through the organisation," he said.