Carter Jonas
Carter Jonas

Cream off your share of milk reduction cash

The EU’s “Milk Production Reduction Scheme” is now open.

The first deadline for making an application is 11am on Wednesday 21st September so any farmers who wish to receive compensation for reducing their milk production should get their skates on. The full details of the rules and the application form can be found on the RPA website here

The EU has made €150 million available to encourage dairy farmers to reduce milk production. In theory, qualifying farmers will be paid around 12ppl for every litre of reduced milk supply over a three month period.

There are four chances to apply (October to December 2016; November 2016 to January 2017; December 2016 to February 2017 or January to March 2017). However, if too much volume is submitted in the first three month period there will be a reduction in the volume available for the three other tranches.

To be eligible you will need to have been producing milk in July 2016 and for the initial application (October to December 2016) farmers will need to fill in and post a completed application form along with proof of production levels in 2015 for October, November and December. Alongside this they will also need to submit their milk cheque for July 2016, to show they are eligible.

Farmers applying for the scheme will have to predict the level of reduction in production that they will achieve but deductions will be made if the actual level of reduction is less than forecast and if it drops below 20% of forecast no payments will be made at all. If the reduction exceeds the forecast amount, payments will be limited to the level forecast.

Following the end of your chosen three month period you will have 45 days to submit evidence to the RPA to show that you have reduced production.

This is clearly a significant opportunity for those farmers who have already reduced milk production and if anyone needs any assistance completing these forms please do not hesitate to contact my colleague Hollie Hembrow for initial free advice on: hollie.hembrow@carterjonas.co.uk

James Stephen

James Stephen

Partner

James is a partner who heads up Carter Jonas’ South West rural operation, managing the teams in the four offices of Marlborough, Bath, Taunton and Truro.  He primarily works out of the Taun...

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