All Irish applications accepted in full for milk reduction scheme

The Department of Agriculture’s Voluntary Supply Management Scheme Unit has confirmed that, in respect of the first round of the Voluntary Milk Reduction Scheme that no production coefficient will apply.

This means that producers who applied for the scheme will be authorised to reduce production to the full extent they proposed within the relevant parameters – notably to a maximum 50% versus the reference period. 

Assuming these criteria are met, aid will be paid to the full extent.

The Department is also pointing out that the offer is specifically contingent on verification of production in the reference period of October-December 2015.

Along with the verification of production in the eligibility period of July 2016, as well as the actual production levels recorded over the next three months.

Letters will be issued in the near future by the Department, confirming producers of their eligibility for the scheme.

These letters will also advise farmers of their authorised reduction volumes and applicants will be made aware of a number of requirements of the scheme.

Stipulations of the voluntary milk reduction scheme:
  • An application will be required outlining actual production reduction, as opposed to that proposed in this initial process, and this reduction will need to be verified by the cooperative/purchaser.
  • This application will need to be submitted within 45 days of the end of the production period (ie. 45 days from December, 31, 2016)
  • The payment application process will be handled via the cooperatives/purchasers in line with the initial application, and relevant application forms and accompanying advice will be circulated via this route towards the end of the production period in December.

Payment details

With regard to the payment criteria to be followed, the full amount of aid will be paid on the actual reduction, if it is not more than 20% below the proposed reduction.

Aid will be paid on 80% of the actual reduction if this actual reduction is between 50% and 80% of the proposed reduction.

Farmers will be paid aid on 50% of the actual reduction if this actual reduction is between 20% and 50% of the proposed reduction.

No aid will be paid if the gap between the proposed and the actual reduction is more than 80%. Per agreed EU regulations Aid will be paid within 90 days of the end of the closing period.