Support scheme for dairy farmers
Agriculture Minister Simon Coveney, who announced the details, said the scheme will significantly ease the cash-flow burden on dairy farmers facing a superlevy bill in 2015.
“I am satisfied that this approach will be of significant benefit to all dairy farmers facing a levy in 2015, including those considering expansion,” he said.
Mr Coveney said the scheme follows the introduction by the European Commission of legislation to allow for such payments to be spread in three annual instalments without interest.
Milk producers who wish to avail of the scheme will be obliged to pay the first third of the liability to the department before October 1. The two remaining instalments must be paid by the same date in 2016 and 2017.
Milk producers apply through their milk purchaser to participate in this scheme. Application forms and terms and conditions are being distributed to milk purchasers.
They will deduct what is due from the milk payments to farmers in May to September each year. The deadline is June 30.
IFA National Dairy Committee chairman Sean O’Leary welcomed the news that the scheme would not exclude farmers with smaller superlevy bills.
Allowing farmers to move to a new milk purchaser without the full bill becoming immediately due, provided a new agreement under this scheme is established with the department and the new milk purchaser, was also welcome.
This means there can be no justification for a co-op to seek to use the scheme to sway a farmer’s decision to leave or stay with them.
Mr O’Leary said it was regrettable that the delay in setting up the scheme means it will not come in time for the May milk cheque.
“However, co-ops can help with this, and it is important they would suspend superlevy collections until their suppliers have decided whether or not to use the scheme, especially when one third or more of their superlevy liability has already been collected,” he said.
Meanwhile, Mr Coveney says farmers will be refunded €27m which was deducted from their 2013 Single Payment Scheme payments under the financial discipline rule.
