Lessees will be allowed buy quota
This option had been limited to pre-April 2001 leases up to now; now the only stipulation is that leases must have been in place for at least one year. According to the Department of Agriculture, it removes an inflexibility from the system for those who had entered into family leases in the past few years.
This purchase opportunity is also being extended to producers who had been assigned leases before April 2000. In addition, these producers will be allowed to renew such leases.
It is confirmed in the new regulations that quota owners will now be able to sell their quota with corresponding land. Up to now, quota owners who were not active producers could not sell their quota with land. Prospective vendors will continue to require Department certification.
These changes to the quota sales provisions flow directly from a change in the EU regulations. In relation to temporary leasing, Agriculture Minister Joe Walsh said that only part of a quota can now be put into the temporary leasing pool, and this option is open only to active producers.
Only in force majeure situation might farmers be allowed to temporary lease their entire quota. This change follows a change in EU regulations.
But it re-enforces Ireland’s current policy of progressively limiting temporary leasing opportunities for non-producers, with a view to directing quota definitively to active producers, said Minister Walsh .
The maximum age at which a parent can establish a New Entrant Parent Milk Production Partnership has been extended from 59 to 62. All partnerships will be allowed to continue until a partner reaches 66 years of age. Three producers are now being allowed to come together to form Standard Partnerships.
Minister Walsh also announced new quota dormancy rules for the surrender of partially or completely unused quota to the National Reserve.
Now, if quota is left in the national reserve for two years it cannot be restored to the previous owner, except in force majeure type cases. Minister Walsh said he would be in a position to finalise Restructuring Scheme decisions in the early Autumn.
In the meantime, his Department is arranging a meeting on May 28 with representatives of farming organisations, dairy processors as well as technical experts, to address the key quota system issues. The Milk Quota Review Group will continue to advise on quota management.
