Niamh Smyth (Cavan-Monaghan, Fianna Fail)
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29. To ask the Minister for Agriculture, Food and the Marine when farmers nationwide and particularly in counties Cavan and Monaghan will receive payment in phase 1 of the milk reduction scheme; and if he will make a statement on the matter. [4839/17]

Michael Creed (Cork North West, Fine Gael)
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The EU Voluntary Supply Management Scheme for dairy was a short term market stabilisation mechanism introduced by the EU Commission last year, as part of a range of tools to mitigate price volatility in the Dairy sector .

In phase 1 of the scheme, applicants were required to reduce milk production in the period October 2016 to December 2016, compared to the same period in 2015.  Applicants have until February 3rd to apply via their cooperative/purchaser for payment.  These applications must be sent on to my Department by February 9th.  Payment will be on the basis of the actual reduction rather than that predicted in the application, subject to the certain terms and condition.  

My Department will process the applications and payment will be made to qualifying participants following EU approval. Payments will be made within 90 days of the final date of the reduction period for phase 1, that is  31st December 2016, as laid out under the terms of the scheme.

Phase II of the scheme required applicants to reduce production in the period November 2016 to January 2017. The closing date for applications to co-ops under phase II has not yet been finalised, but is expected to be early March.