GIVEN the troubled times in the Scottish dairy sector, some producers could now be tempted to go for a share of the the EU's £150million volume reduction scheme.
NFU Scotland this week encouraged producers to assess their business needs and decide if they are on course for a volume reduction which would justify their applying for the 12.23p 'per litre lost' pay-off – and expressed its disappointment that neither the Scottish Government nor the Rural Payments Agency plan to contact the 900 dairy farmers in Scotland to inform them that this scheme is open to them.
But a government spokesperson told The Scottish Farmer: “We have been liaising closely with stakeholders, including NFUS, on the introduction of the scheme and have passed on information to the union so they can make their members aware of the scheme’s introduction.
“We are also promoting it via our social media channels and there is information available on the Rural Payments and Services and RPA websites. With applications closing on September 21, we would encourage any interested dairy farmers to use the information available and submit an application.”
To apply, producers must plan to reduce their milk deliveries by at least 1,457 litres in the relevant future production period. The maximum that can be applied for is a 50% reduction of the milk produced in the reference period.
NFUS is recommending that all producers, in discussions with their milk buyer and advisers, now give prompt consideration to the scheme.
There may be up to four reduction periods – October to December 31 2016; November 2016 to January 31 2017; December 2016 to February 28, 2017; and January 1 to March 31, 2017.
If the scheme is over-subscribed in one or more reference periods, the volume of milk eligible for payment will be reduced. If one of the reduction periods is full or oversubscribed, the remaining reduction periods will be cancelled. And according to NFUS, there are indications the scheme could well be oversubscribed.
NFU Scotland’s dairy committee chairman Graeme Kilpatrick said: “This package is a positive move for dairy farmers across the country who have been struggling for some time to survive. However, this funding in itself won’t solve the industry’s problems and we continue to liaise with various stakeholders to assess ways in which practices can be improved to the benefit of the industry.
“Dairy producers must assess, on an individual basis, whether the scheme is of value to their business. Producers are urged to make sure their applications are filled out correctly, are submitted on time and have the relevant documents attached. Otherwise, they could lose out on vital money.
“As far as NFU Scotland understands, neither Scottish Government or the Rural Payments Agency are sending anything direct to farmers about this scheme," he added. "This is very disappointing given milk producers have been facing the longest period of low prices that can be remembered and which has been devastating to the industry. With a scheme designed to help they should be doing more and speaking to dairy farmers directly.”