The Gazette 1992

GAZETTE

JUNE 1992

Milk Quota Leases

The Department of Agriculture

and Food has circularised the dairy

co-operatives in relation to quota

leasing and a copy of their circular

is produced hereunder.

From now on both the lessor and

the lessor's co-operative will have

to complete forms (known as

Forms (1) and (2) respectively)

giving full details of the quota and

the land on which it was

produced. The co-operative

requesting approval for the

quota transfer must retain these

forms for inspection by the

Department.

Land transactions milk quota

transfers

Notice to each Register purchaser.

3 April 1992;

I refer to this Department's circular

of 9 December 1991 on the

arrangements for the transfer of

milk quota as a result of land

transactions.

It was specified in the above

circular that the revised system for

processing quota transfer

applications was introduced in the

first instance to deal with the large

number of cases which were on

hand in relation to 1991/92. It was

however also indicated that the

system for processing land/quota

arrangements as from 1 April, 1992

would be along the same lines.

I can now confirm that the system

to apply from 1/4/1992 will be

similar to that set out in the

above-mentioned circular. For all

land leasing transactions,

whether

internal

(i.e. between producers

within the same Co-op/dairy)

or external

(i.e. between producers

attached to different Co-ops/dairies),

paragraph 2 of the Circular of 9 Dec

1991 is the main determining factor

for the transfer of quota.

Milk quota attaching to land will

transfer on the basis of a lease of

that land provided the lessee has

taken over the operation of these

leased lands for a minimum period

of three years.

In this context it will

be a requirement for quota transfers

effective from 1 April, 1992, and

future years, that the lessee submit a

written statement that he/she has

actually taken possessioin of the

leased land and that he/she (the

lessee) is the sole operator of the

leased land.

This statement should

be forwarded to the Department

along with all other documentation

or, in the case of internal leases,

must be retained at the Co-op/dairy

for inspection by Department

Officials.

It will continue to be a requirement

that all requests for quota transfer

on the basis of a leasing transaction

be accompanied by a statement by

the lessor that the land being leased

is land which was used by the lessor

for dairying in 1983 and that the

amount of quota being transferred is

a genuine reflection of the

contribution of the leased land to

the establishment of the quota.

The Department must stress again

that where a supplier wishes to

transfer

all

of his/her quota,

all

the

land used for dairying in 1983 must

transfer. Where only a portion of

that 1983 dairying land is being

transferred, a proportionate amount

of the quota will transfer. Producers

should be made aware of the

importance of the proper

identification of their lands to which

milk quota attaches. In this context,

a Land Registrymap of the lessor's

entire holding must be submitted in

every case. This map should be

clearly marked to identify (1) the

total area which was used for

dairying in 1983 and (2) the area

which is being leased.

The map is

essential for the Dairy Produce

Inspectors who will be inspecting the

leased lands during the term of the

lease.

Form 2

attached must also be

completed and forwarded with all

applications to Head Office for

quota transfers. Forms 1 and 2

must also be completed in respect

of land/quota transfers between

suppliers to the same co-op/

dairy and

must be retained for

inspection by the Department's

Officials.

Form 3

which was necessary in

1991/92 to enable the Clawback

position to be assessed is of course

no longer required as the Clawback

arrangements ended with effect from

31 March, 1992.

Milk purchasers are reminded that in

accordance with the recording

requirements set out in the

Department's circular No. 1/92 it is

necessary to maintain a separate

listing of certain specified quota

transactions carried out during a

super levy year (item No. 6).

In summary therefore the minimum

supporting documentation required

for the transfer of quota on the

basis of a land lease, whether an

internal transaction within a co-

operative or an external transaction,

is as follows:-

(1) Legal land leasing agreement

between both parties;

(2) Land Commission consent to

subdivision;

(3) Forms 1 and 2 fully completed;

(4) Statement by lessee that he/she is

the sole operator of the leased

land;

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