new DEFRA rules for non-producers - July 2003

It has been recently confirmed by DEFRA that milk producers who do not produce against their quota in the 2003/04 milk year have until March 31st 2004 to sell their quota or resume production. Failure to do so will result in quota being confiscated into a national reserve. Non-producers will be able to regain confiscated quota if they resume production within a certain period (still to be determined).

In addition to the changes in the milk quota rules, the CAP reforms have produced changes to the way subsidies are going to be paid. Unfortunately, the final rules are still not yet finalised. But as things stand at the moment, "Entitlements" are going to be created and the value of these will depend on the subsidies you received in the period 2000/2002 spread over the amount of eligible land on your farm. Entitlements are not attached to land and will be tradable. To qualify for these you will need to arrange to be in business at 15th May 2004.

This situation is still developing so please be very wary about any major changes planned and please call us for advice prior to making any land deals especially.

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