Tuesday closing date in levy payment scheme
Co-ops have been asked by IFA national dairy committee chairman Sean O’Leary to suspend superlevy collection, until farmers decide whether or not to use the three-year instalment payment scheme introduced last week by Agriculture Minister Simon Coveney.
Mr O’Leary also said there can be no justification for a co-op to use the scheme to sway a farmer’s decision to leave or stay with them.
Next Tuesday, June 30, is the scheme closing date. The Department of Agriculture has issued the following scheme information.
The scheme is open to all milk producers who have incurred a super levy liability in the 2014/2015 milk quota year and who meet the eligibility requirements.
No, the scheme is voluntary, and it is not necessary to apply, if that is the producer’s preference. Those not applying will have to pay their superlevy bill in full in 2015.
Yes, you may repay all of your superlevy bill this year. Do not apply for this scheme if you wish to do this.
To be eligible to avail of this Scheme, you:
— Must be an active milk producer;
— Must accept liability for the entire super levy attributable to you
— Must agree to a formal repayment agreement with the milk purchaser to whom you were supplying milk when the levy was incurred, or if the current purchaser is different to the purchaser with whom the debt was incurred, you must agree to a formal repayment agreement with both.
— Must complete the agreement and confirm willingness to be bound by the requirements contained therein and must not have a history of debt default with the Department.
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You should contact your current milk purchaser for a copy of the detailed rules and application forms.
You must complete a formal agreement form, in which you will confirm the value of the levy paid by the Department on your behalf.
This is a contract between you and the Department in which you commit to repaying the money paid on your behalf by the Department.
Your milk purchaser will withhold equal instalments from your milk payments (for milk deliveries in the previous month) in respect of May, June, July, August and September in 2016 and 2017, to cover the cost of the debt. Your milk purchaser will then transfer this money to the Department on your behalf.
No.
The Scheme allows for such scenarios, but you should ensure that you complete the appropriate Agreement Form (Form II), which must be countersigned by your current milk purchaser and the milk purchaser with whom you incurred the levy.
Yes, you may switch milk purchaser at any time subject to your own milk supply arrangements with your purchaser.
In order to continue to benefit from the scheme your new milk purchaser must agree with the Department that they will continue to deduct repayments due to the Department in the same way as your existing purchaser.
Completed agreement forms must be returned to the milk purchaser by June 30.
At least one third of your super levy liability (first instalment) must be paid to your milk purchaser, to allow it to pay the Department before October 1, 2015.
The second and third instalments must be paid in accordance with the formal agreement that you will sign. The total amount paid by September 30, 2016 must be at least two thirds of the entire levy due, and the balance must be paid by September 2017.
As outlined previously, these instalments will be deducted from payments in respect of the months of May to September in both years.
If the payment is not made to the milk purchaser by the 15th of the month following the due date, the full value of the debt shall fall due immediately, with interest.
If a milk producer changes his/her status or farming arrangements (for example, incorporates into company status, transfers SPS entitlements, ceases to supply milk to their current milk purchaser, creates a farm partnership or share farming arrangement, or exits milk production, etc), the full value of the debt shall fall due, with interest, unless a new payment arrangement is agreed in advance with the Department.
For proper administration and credit control, monthly payments should be of equal value. Alternative arrangements may be considered in very exceptional circumstances.
The Department will process all agreements received, and will assess them against the Department’s list of clients who have outstanding debts.
Each participant must also meet the “de minimis” state aid requirements.
Under EU Rules, the maximum National Aid that Member States can provide to producers is €15,000 in any three-year period.
Major EU funded and co-funded payment schemes, such as the Single Payment, Disadvantaged Areas and REPS, AEOS, etc do not fall into this category.
For the purposes of this scheme, the interest relief is regarded as a State Aid.
In exceptional circumstances, it is conceivable that the benefit of this scheme in terms of interest relief, when added to the cumulative benefit of State Schemes, could lead to the producer breaching the relevant threshold.
If you believe you may exceed this threshold, you may contact the Department to check your current status.
Even in the event of breaching the relevant threshold, producers may still avail of the option to pay in instalments, but will be required to pay interest on debt.
Schemes that are subject to the de minimis ceiling include premium from Kerry Cattle live calves, BVD Scheme, Beef Technology Adaption Programme, Sheep Technology Adaption Programme, Development Programme for Dairy, Bord Bia Beef & Lamb Quality Assurance Scheme, Beef Genomics Programme, Milking Skills Programme, Dairy Cash Plan 2014, and Imported Fodder Transport Scheme 2013.
