By way of compensation for the intervention price cuts, a new dairy premium will be introduced in 2004. The premium will be coupled to milk production in the first year and will be decoupled from production with effect from 2005. The original proposal was that the dairy premium would remain coupled to production until 2007. Following negotiations with the Commission on 29 September last, I secured agreement to have the dairy premium decoupled from production with effect from 2005. This was an important development in that it will allow dairy farmers to make important decisions in the period ahead about the sale and acquisition of quota and land and associated investment decisions. In taking the decision to decouple the dairy premium from 2005, I took into account the view expressed to me by representatives of dairy producers.