Trading Scheme open to partnership new entrants
This new entrant is not required to own or lease land or facilities. But the quota should be produced in partnership with an eligible parent, on that parent’s farm.
A qualifying son or daughter must be under 35 on March 31, 2007; have no milk quota, nor have held milk quota in their name previously; and meet minimum educational/training requirements (applicants born after January 1, 1975 must have the FETAC Level 6 Advanced Certificate in Agriculture or equivalent).
A qualifying parent must be under 63 when a qualifying partnership agreement is signed. The permanent quota of the parent, who is an existing producer, must be less than 500,000 litres (109,984 gallons).
The New Entrant and Parent must successfully register as a New Entrant/Parent MPP partnership, and hold an up-to-date Certificate of Registration from the Dairy Partnership Registration Office, Teagasc, Moorepark, Fermoy, Co Cork.
However, a son or daughter not registered as a New Entrant/Parent MPP before the November 24 application deadline to purchase quota in this year’s exchange can still apply to purchase from both the first and second exchanges this month and next spring.
They will be allocated quota provisionally, but have to apply to register with the Dairy Partnership Office not later than March 31, 2007.
All new entrants should indicate on the application to purchase the total amount of Priority Pool and Market Exchange quota sought.
If you do not acquire the total amount requested from the Priority Pool, the balance of your bid will be placed on the Exchange. It would be advisable therefore to bid at the price you would be prepared to pay on the Market Exchange, and make out and enclose a cheque accordingly. A refund will be made as required, if some of the quota sought is obtained from the Priority Pool. The maximum amount a new entrant can acquire from each exchange, is 60,000 litres (13,198 gallons). Normally, it is only in the case of lost leases that parents in an MPP can acquire quota.
The applicant in a successfully registered partnership can draw down quota allocated to them by submitting the Certificate of Registration to their milk purchaser, not later than April 30, 2007.
New entrants can also be eligible for additional quota up to 350,000 litres under the Category 1 allocation, if the combined quota of the partnership remains less than 500,000 litres (109,984 gallons).
Last year’s new entrants qualify for additional quota this year, subject to availability from the Priority Pool, if they continue to meet qualifying requirements.
Establishing a New Entrant / Parent MPP will involve consulting with an advisor, accountant and solicitor and applying to register a partnership not later than March 31, 2007 (otherwise, there’s no guarantee that necessary paper work will be completed in time for issuing a Certificate of Registration by April 30, 2007.
The parent must have used at least 70% of quota during the two years before entering a partnership. (The Minister can give exemptions, in the case of animal disease, for example).
The written partnership agreement has to be for at least five years, or until the parent’s 66th birthday, whichever is the lesser.
The parent must be under 63 when the partnership agreement is signed.
If the parent has gross off-farm income, it cannot exceed €35,000 in the year before registering the partnership, or during the partnership. There is no restriction on the new entrant’s gross off-farm income in the year before entering the partnership; however, it is limited to €30,000 per year of the partnership.
Normally, all land — owned, leased or rented — has to be farmed in the partnership; but certain specialist enterprises may be exempted.
The new entrant cannot have already been the holder of a milk quota.
There is a €250 fee to Teagasc for registering a partnership. Application forms are available from the Dairy Partnership Registration Office, Teagasc, Moorepark, Fermoy, Co Cork (telephone 025 42244).
