| How can quota holders transfer/sell their milk quota?
Quota holders can transfer their milk quota by applying for either a permanent transfer or a temporary transfer (lease).
What is the difference between a permanent transfer and a temporary transfer?
When quota is temporarily transferred (leased), it remains with the transferee (lessee) until the end of the quota year, and reverts to the transferor (lessor) from the start of the nest quota year. When quota is transfered permanently, it does not return to the transforer, but remains with the transferee.
What is a transfer of quota with land? How is quota transferred with land?
Quota will be permanently transferred when there is a change of occupation of the land to which the quota is attached, e.g. if a farm is sold or inherited, or at the beginning or end of a tenancy.
Can I transfer milk quota without land?
Yes, provided the transferee is a milk producer. The quota will be removed from the transferor'd holding and attached to that of the transferee. The same Milk Quota form (MQ/1) is used for transfers with land and transfers without land.
Who can permanently transfer/sell milk quota?
Quota holders can apply to permanently transfer their milk quota. However,
they must obtain consents of all the parties who have an interest in their holding (i.e. a mortgagee, landlord etc) before permanently transferring quota.
Who can temporarily transfer quota?
Only a producer can lease milk quota out.
Who is a “producer”?
A producer is someone who is producing and marketing milk, or preparing to do so in the very near future.
What is meant by "beginning milk production in the very near future”.
Producers in this category will be required to produce evidence of their state of preparedness to begin milk production. This will require more than the submission of a business plan, but of actual steps taken. The RPA will be looking for evidence of the holding, forage, milking facilities and arrangements to acquire the milking herd. The RPA will apply a restrictive interpretation to this category of producer. Whilst, therefore, no time limit is mentioned, the RPA – as a rough guide – would not expect any proposals to be submitted for consideration which are not likely to be translated into active milk production more than a few months in the future. The RPA would expect that producers in this category would have so prepared as to be on the verge of entering milk production.
As a guide, the RPA would not regard the following situations as satisfying the definition of this category.
a. Those with no land (holding);
b. Those with land (holding), but no milking facilities;
c. Those with land (holding) and milking facilities, but no animals;
Of course, the acquisition of quota (individual reference quantity) is essential for a producer and there may be other instances than those examples listed above where the RPA would not be satisfied that the person satisfied the requirements to be regarded as a producer.
Essentially, therefore, the RPA would expect persons in this category would most definitely not just be in the planning stage but would need to take just one more step, such as the delivery of milking animals already purchased, to enable them to start actual production.
It will assist the RPA in making a determination of whether a person can be regarded as a producer to have a fully detailed and frank account of the position reached and what still requires to be done.
Can I sell quota that I have leased out in the current quota year?
Yes, but it must be transferred as used quota.
Does the RPA accept signatures of a third party (i.e. a quota agent) on a milk quota transfer form?
Yes, provided we have a valid letter from the registered quota holder, authorising the third
party to sign the form on their behalf.
What is the deadline for submission/receipt of milk quota transfer forms?
A list of form submission/receipt deadlines can be accessed via the Important Dates link under the Related Links heading. |