The scheme facilitates farmers who wish to reduce production in a three-month period, the first period being October to December 2016.
Farmers' reduction in output will be measured against their production in the same period in 2015.
According to the Department of Agriculture, there are plans for further rolling three-month reduction periods after this, but only applications for the first period are being accepted now.
The rollout of the scheme beyond this first period will be dependent on some of the €150m budget being available after it has ended.
The Department issued a statement on Friday 2 September to say interested applicants may apply via their milk purchaser who will have the application forms.
"Interested farmers must clearly state the amount by which they propose to reduce their output from October to the end of the year compared to the same period last year," the statement reads. "The closing date for farmers to return completed forms to their milk purchasers is Thursday 15 September."
The Department has also prepared a detailed FAQ, which it says "should help to answer any queries from interested applicants".
This is available on the DAFM website here.
Milk supply reduction scheme
Farmers who participate in the scheme will be paid 14c/kg (14.4c/l) for volumes of milk not produced during the period. Each participating farmer will have to commit to a supply cut above a minimum to be set in September, and up to a maximum of 50% of their production for the same period last year. Once a farmer has committed to reducing milk production under the scheme, there will be “penalties for failing to reduce production for the full amount offered”, the European Commission has warned.
According to the Department, the penalties will be as follows:
The full amount of aid will be paid on the actual reduction if it is not more than 20% below the proposed reduction.Aid will be paid on 80% of the actual reduction if this actual reduction is between 50% and 80% of the proposed reduction.Aid will be paid on 50% of the actual reduction if this actual reduction is between 20% and 50% of the proposed reduction.No aid will be paid if the gap between the proposed and actual reduction is more than 80%.The Department has also clarified that producers from the Republic of Ireland who supply to Northern Ireland cooperatives/purchasers are entitled to avail of the scheme and should apply directly to the Department of Agriculture.
At the end of the three-month period, “farmers will then have 45 days to provide the proof that they have reduced production – following which the aid can be paid”. A Commission source added that "payment shall be made no later than the 90th day following the end of the reduction period, unless an administrative inquiry is ongoing". This means that farmers who verifiably cut production in the initial October-December period must be paid by the end of March.
Read more
Minimum 1,500l cut to avail of milk production reduction scheme
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The scheme facilitates farmers who wish to reduce production in a three-month period, the first period being October to December 2016.
Farmers' reduction in output will be measured against their production in the same period in 2015.
According to the Department of Agriculture, there are plans for further rolling three-month reduction periods after this, but only applications for the first period are being accepted now.
The rollout of the scheme beyond this first period will be dependent on some of the €150m budget being available after it has ended.
The Department issued a statement on Friday 2 September to say interested applicants may apply via their milk purchaser who will have the application forms.
"Interested farmers must clearly state the amount by which they propose to reduce their output from October to the end of the year compared to the same period last year," the statement reads. "The closing date for farmers to return completed forms to their milk purchasers is Thursday 15 September."
The Department has also prepared a detailed FAQ, which it says "should help to answer any queries from interested applicants".
This is available on the DAFM website here.
Milk supply reduction scheme
Farmers who participate in the scheme will be paid 14c/kg (14.4c/l) for volumes of milk not produced during the period. Each participating farmer will have to commit to a supply cut above a minimum to be set in September, and up to a maximum of 50% of their production for the same period last year. Once a farmer has committed to reducing milk production under the scheme, there will be “penalties for failing to reduce production for the full amount offered”, the European Commission has warned.
According to the Department, the penalties will be as follows:
The full amount of aid will be paid on the actual reduction if it is not more than 20% below the proposed reduction.Aid will be paid on 80% of the actual reduction if this actual reduction is between 50% and 80% of the proposed reduction.Aid will be paid on 50% of the actual reduction if this actual reduction is between 20% and 50% of the proposed reduction.No aid will be paid if the gap between the proposed and actual reduction is more than 80%.The Department has also clarified that producers from the Republic of Ireland who supply to Northern Ireland cooperatives/purchasers are entitled to avail of the scheme and should apply directly to the Department of Agriculture.
At the end of the three-month period, “farmers will then have 45 days to provide the proof that they have reduced production – following which the aid can be paid”. A Commission source added that "payment shall be made no later than the 90th day following the end of the reduction period, unless an administrative inquiry is ongoing". This means that farmers who verifiably cut production in the initial October-December period must be paid by the end of March.
Read more
Minimum 1,500l cut to avail of milk production reduction scheme
Member states vote to extend PSA and intervention period for SMP
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