Each litre of reduced milk production from October to December, in 2016 compared to 2015, will qualify for a 12-14c payment, in this week’s EU plan to reduce milk deliveries.
“The scheme will run on a first come, first served basis,” said Mairead McGuinness, Vice President of the European Parliament, where Agriculture Commissioner Phil Hogan outlined details of the €500m Solidarity Package on Tuesday.
The package has come with a warning from the European Commission that this is the final package of measures to tackle the deepening dairy crisis, said Ms McGuinness.
Alongside its €150m to incentivise a reduction in milk production (which farmers across the EU will have equal access to), Ms McGuinness said the €350m of so-called conditional adjustment aid will give Member States flexibility to respond to the dairy crisis, sector and other vulnerable sectors, including grain.
Ireland is set to receive €11mof conditional adjustment aid.
Farmers have emphasised the urgency of quickly implementing the aid package, which was approved by EU Agriculture Ministers this week.
IFA National Dairy Chairman Sean O’Leary warned that a fast rising number of dairy farmers are struggling to meet their daily family needs, never mind pay business bills.
“Today’s package of support could be used to enhance the proposed loan scheme and must be delivered urgently,” said Mr O’Leary.
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