Written answers

Wednesday, 2 July 2008

Department of Agriculture and Food

Milk Quota

9:00 pm

Photo of Willie PenroseWillie Penrose (Longford-Westmeath, Labour)
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Question 207: To ask the Minister for Agriculture, Fisheries and Food the legislation underpinning the dairy premium payments industry indicating the way they are calculated since 2005; if they and the quotas are transferable upon the sale of farm lands; and if he will make a statement on the matter. [26130/08]

Photo of Brendan SmithBrendan Smith (Cavan-Monaghan, Fianna Fail)
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The Council of Agriculture Ministers provided for the introduction of a Dairy Premium in 2004 as part of the CAP Mid-Term Review agreement in June 2003. The agreement also provided for the decoupling of the Dairy Premium to become part of the Single Payment Scheme, which was also introduced as part of that agreement. Council Regulation (EC) No. 1782/2003 provided that the Dairy Premium could be decoupled in 2005, 2006 or 2007.

The Minister for Agriculture and Food decided to decouple the Dairy Premium in Ireland with effect from 2005. Therefore, while the Dairy Premium was paid to eligible applicants as a coupled scheme in 2004, in 2005 an amount equivalent to the Dairy Premium established in March 2005 was incorporated as part of the Single Payment for eligible farmers. The 2006 increase in the Dairy Premium was added to the payment entitlements of those farmers, who benefited from the decoupled premium in respect of 2005.

In order to be eligible to benefit under the 2005 decoupled Dairy Premium Scheme a farmer was required, inter alia, to hold a milk quota on 31 March 2005, and deliver milk from his/her holding during the 2004/2005 milk quota year or commence milk deliveries in his/her own right prior to the deadline for application.

The provisions governing the transfer of entitlements under the Single Payment Scheme, including entitlements which include a dairy premium element, are contained in Council Regulation (EC) No 1782/2003. If the holder of these entitlements utilised 80% or more of his entitlements in a scheme year, he or she can permanently transfer the entitlements. Otherwise, he or she can permanently transfer or lease the entitlements with an equivalent number of eligible hectares.

The provisions on the transfer of milk quotas upon the sale of the relevant lands are contained in the European Communities (Milk Quota) Regulations, 2000 (S.I. No 94 of 2000), as amended.

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