How to apply for round two of milk supply reduction scheme

The second round of the €150m voluntary milk reduction production scheme begins on 1 November and runs until 31 January 2017.

Farmers interested in the scheme should apply via their milk co-op not later than close of business on Monday 10 October. Application forms are available and will be processed through the co-op.

The scheme compensates farmers to the tune of 14c/kg (14.4c/l) for reducing a fixed amount of their milk supply over a three-month period compared with the same three-month period the previous year.

The 14c/kg aid will be payable on volumes of milk not produced during the period. It emerged last week that Ireland had the third-highest volume of applications for the first tranche of the scheme, which runs from 1 October to 31 December 2016.

In total, the first tranche of the programme was almost fully subscribed, with a 98.9% uptake across all EU member states.

Co-efficient

Therefore, with less than 1% of the total budget remaining for phase two of the scheme, it is more than likely that a co-efficient will apply to those farmers who apply in this tranche.

This means that farmers will still receive approximately 14c/kg on their reduction, but on a reduced percentage of their overall application volume.

For example, if the total amount of aid applied for across all EU member states amounts to 10% over the allocated budget of €150m, farmers will receive a maximum of 14c/kg on approximately 90% of their proposed reduction, provided that they meet their proposed reduction in full.

Applicants will have to cover a reduction of at least 1,500kg in a three-month period, which equates to approximately 1,450l of milk.

The maximum is 50% reduction of total deliveries compared with the reference period.

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