Milk Reduction Scheme August 17, 2016 12:00 am Back in July we wrote about a further package of measures from the EU to support, in particular, dairy farmers. Since then we have had a few enquiries regarding the scheme to pay for a voluntary reduction in milk production. Member States met on 25th August and gave the go-ahead for the scheme. Although, at the time of writing details were not available on the RPA website, but are expected very shortly. However, the broad outline is fairly clear. The scheme is expected to be worth about 12p for every litre of reduced milk production compared to 2015 levels. This is measured over a three-month reference period. There is the option to apply for one of four different periods; October to December 2016, November 2016 to January 2017, December 2016 to February 2017, or January to March 2017. But only one three month period can be applied for by a producer. The deadline for applications for the first period will be 19th September 2016. Forms will be available in due course from the RPA website at https://www.gov.uk/guidance/milk-production-reduction-scheme-how-to-apply. Deadlines for the other periods are expected to be about two weeks before the start of each three month window. Applicants will need to provide proof of their production (i.e milk cheque) during the three month period for the previous year. They will also need to send in a forecast for how much they plan to deliver in the same period this year. The forecast is not binding, producers will be paid on either the planned reduction or actual volume reduced, whichever is less. Once the three month period has finished, producers will have 45 days to submit their proof of reduction (i.e current milk cheques). Note, this is a first-come-first-served scheme. If the scheme is oversubscribed, the volumes eligible for aid in the later periods will be reduced.
