Q&A with Martin Keane, ICOS: ICOS plan to smoothen bumpy dairy incomes

The dairy industry has sought the support of political parties and general election candidates for its agri-taxation proposal to reduce extreme income volatility for dairy farmers.

The 5-5-5 scheme will allow a dairy farmer, participating in income averaging, to defer a modest amount of income during a “good” year into a recognised fund, in order to draw down this income later, during periods of low milk prices.

The ICOS 5-5-5 scheme aims to improve the current income averaging system, which can have negative consequences for farmers when profits are falling.