No changes in leasing prices for 2004 demanded
The leading farmers' group also wants the priority quota allocation system divided into two categories "small or medium" and "larger", to be allocated restructuring quota at the ratio of two to one.
New entrants and producers losing private leases should retain their current level of priority, according to IFA, which wants lessees to whom land and quota leases were re-assigned after, for example, the death of the original lessee, given the same right to buy out the quota as the original lessee would have had.
The IFA Dairy Committee also wants more flexibility in Milk Production Partnerships, including removal of the family age limit of 60.
Michael Murphy said producers who intend to exit dairying might be better off not to wait until 2005, when they can establish entitlement to the new EU dairy premium.
He said d they would earn 113.75 cent per gallon from the premium over eight years, after inflation, modulation and other reductions, for existing milk quota and for quota purchased in 2004, but not for quota purchased after 2004.
"In addition to the price of quota and the value of the dairy premium after inflation, CAP reductions and income tax, each producer will have to bear in mind cow values, the cost of maintaining land to activate premium entitlements, etc" he said.
ICMSA sought a restructuring price of 1.40 for 2004 with a reduction to 70c per gallon in 2005, in the Milk Quota Review Group.
The Association proposed that the Minister announce the prices for 2004 and 2005 together, to help farmers in planning their dairying future. ICMSA wants the three priority categories retained in 2004, and a rules review for the 2005 Milk Quota Restructuring Scheme.
Macra national president Thomas Honner has said farmers getting out of milk production after March 31, 2005 should not receive any payment for milk quota.
He said that their dairy compensation payments up to 2012, arising from decoupling, should be more than sufficient for these farmers.
It was critical that active farmers were not burdened with having to pay exiting farmers for non-compensated quota as well.
"In short, quota should be free after April 1, 2005", he said.
Mr Honner said the current value of the future dairy payment, allowing for modulation and inflation, would be well over 1 per gallon.
