Get in quick to benefit from EU dairy scheme, farmers urged

Dairy farmers are being urged to get ready to apply for the EU’s milk supply management scheme, as there will be a tight turnaround on applications for the first round of funding.

Final details of the voluntary scheme are likely to be confirmed at a meeting in Brussels on 25 August.

However, it is planned that farmers will be paid compensation worth about 12p/litre if they commit to reducing production over a three-month period, compared with the year before.

See also: EU could pay dairy farmers 12p/litre to cut production

Information

Sian Davies, NFU chief dairy adviser, stressed the scheme was not yet open, but farmers should dig out the information they were likely to need so they are ready to swing into action when it does.

There were likely to be four tranches of funding with the first relating to a cut in milk production over the period 1 October to 31 December 2016, she said.

Our advice is get prepared early and get the application in early Sian Davies, NFU

Applications

Applications will be made to the Rural Payments Agency (RPA) and will need to be accompanied by written proof of 2015 production levels – for example, a copy of the milk cheques for the months in question – and an estimate of revised production levels.

“When the application window opens there will be a form made available on the RPA website which farmers can download ready to submit along with copies of their milk cheques,” she said.

“There will be a short application window for the first tranche of funding, as applications have to be submitted by 19 September.

“Our advice is get prepared early and get the application in early.”

Ms Davies said she expected there to be quite a lot of applications from UK producers because many had already eased back production, so would be eligible for the scheme without needing to pull back further.

First come, first served

It was advisable to apply for the first tranche of funding as the scheme would operate on a first-come, first-served basis, she warned.

The total pot of money on offer across all member states is worth £125m and if the scheme was completely oversubscribed there might not be an opportunity to apply for further tranches.

The EU could also decide to reduce the volumes of milk it is willing to pay farmers on.

Ms Davies acknowledged while some UK producers might not agree with the introduction of supply management measures the funding was there and if they were eligible to do so then they should apply.

“We don’t want our farmers to lose out,” she said.

According to the NFU, the four tranches of funding are likely to be for:

• Mid-September application for reduction in milk production between 1 October and 31 December
• Mid-October application for reduction in milk production between 1 Nov and 31 Jan
• Mid-November application for reduction in milk production between 1 December and 31 February
• Mid-December application for reduction in milk production between 1 January and 31 March.

Farmers applying in the first window will be paid in March 2017 with all money to be paid by September 2017.