DAIRY farmers have three options when it comes to voting for what they financially contribute to Dairy Australia.

But none allows them to maintain the status quo.

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Last week, Australian Dairy Farmers president Chris Griffin sent letters to all dairy farmers outlining voting options for next year's Dairy Service Levy poll.

The three options included: no levy, a 10 per cent increase or a 15 per cent increase.

Dairy farmers annually contribute $0.0032 a litre or $3200 for every million litres of milk, and according to the letter, this hasn't risen for a decade.

The option recommended by Mr Griffin on behalf of the Dairy Levy Poll Advisory Committee was a 10 per cent rise, or an increase of $320 per million litres of milk a year.

This rise would maintain the status quo in terms of services, according to Mr Griffin, but he said it would not be enough to stop the depletion of reserves.

"The vote five years ago, because of the situation with bad drought, the industry decided to maintain the status quo," he said.

"We can't continue to try and maintain services (Dairy Australia) currently provides and run down reserves as a result of that."

He said it would be "irresponsible" to again ask farmers to vote for the same level of contribution because a catch-up on inflation could mean a rise of 25 per cent to 30 per cent at the next vote.

While a incremental increase in levy was the preferred option by the industry advisory committee, Mr Griffin denied the dairy industry was risking a "no" vote by offering three options - two to increase and one to remove the levy.

"I don't believe dairy farmers are irresponsible to the point where they would vote out a research and development organisation," he said.

"The majority of farmers realise the need for research and development within the dairy industry."

A "no" vote would also jeopardise about $18 million of government funding for the dairy industry - which matched farmer contributions, Mr Griffin said.

Participation rate in the last poll was 51.45 per cent of levy payers.

According to Dairy Australia's 2009-10 report, its total net assets were $25.4 million at June 30, a level of reserves it described as "above what we consider a prudent minimum of $12.7 million".

"(It) will be reduced over the next five years consistent with our strategic plan," the report said.

Dairy Australia's total revenue for that year was $52.6 million, including $28.1 million from the Dairy Service Levy.

Its expenses totalled $51.8 million.

Ballot papers will be sent out to producers in early February and must be returned by March 16.