Junior Agriculture Minister and Clare T.D., Tony Killeen has confirmed plans by the Department of Agriculture to allocate the second of five annual increases of one per cent in milk quotas agreed under the so-called "health check" of the CAP reform.
One quarter of the increase or approximately 14 million litres will again be set aside to support new entrants to milk production. The balance will be allocated as a 0.75 per cent increase in quota on a permanent, saleable basis for every producer active on 1 April 2010.
According to Minister of State Killeen: “The Department’s consideration of how best to allocate this year's quota increase has been informed by a careful assessment of the impact of last year's allocation. The Department is keen to enhance the position of all milk producers, but has also paid close attention to the views of the farming organisations and ICOS on the implementation of last year's New Entrants Scheme. I am delighted to note that the Scheme has been received very positively, and that there is a desire to build on that success with a repeat of the process.”.
He continued: “The one issue that did emerge was the need to make provision for those who bought quota as new entrants in recent Trading Schemes. The Department has therefore decided to again use one quarter of the increase to support new entrants, and to earmark some of this amount for special allocations to suitably qualified Trading Scheme applicants".
The details of the scheme will be finalised and published shortly, but Minister of State Killeen indicated that he envisages similar arrangements to last year.
Potential new entrants will apply to the Department of Agriculture, Fisheries and Food to participate in the scheme, and will be joined by those who purchased quota through the Milk Quota Trading Scheme as new entrants in respect of any of the last four milk quota years, including 2010/2011. On this occasion a maximum of 50 successful 'brand new' entrants will each receive allocations of 200,000 litres of quota. The balance of approximately 4 million litres will be divided equally between suitably qualified Trading Scheme applicants.
All applicants will be carefully chosen based on their own circumstances and their potential viability as dairy farmers. A comprehensive business plan will have to be submitted, and all applications will be subjected to a rigorous assessment by the same independent assessment group that adjudicated on last year's New Entrants Scheme.
