Teagasc Advice for Dairy Farmers Hit by Foot and Mouth Crisis
Issued 29thMarch 2001
Teagasc has issued urgent advice to dairy farmers availing of the Early Retirement Scheme to follow strict procedures in order to protect their retirement income.
''Retiring dairy farmers will forfeit their quota if they lease land outside the family without following the proper procedures'', warned Dermot McCarthy, Chief Dairy Advier with Teagasc.
''Normally dairy farmers sell their quota into a Restructuring Scheme before leasing their dairy land but this is not possible this year as the Restructuring Scheme has been postponed due to the Foot and Mouth restrictions'', he said.
He said it is essential for retiring dairy farmers to get a Certificate of Temporary Retention of quota from the Department of Agriculture before leasing land. This certificate will allow them hold milk quota in abeyance while land is leased until this year's Quota Restructuring Scheme is eventually operational.
Other difficulties are that where retirement involves a lease of land and quota to a family member e.g. nephew, it is not possible to amalgamate herds due to movement restrictions and discontinuance of TB and Brucellosis testing. For the same reasons, potential partnership start-ups planned for April 1st must be put on hold.
With regard to the milk quota situation, Dermot McCarthy stated that he expected the country to be just on quota this year.
''The retention of calves on dairy farms this year means milk supplies are running lower than normal as most calves are getting whole milk'', he said.
He welcomed the Minister's announcement that this year's Temporary Leasing Scheme and the additional quota for Ireland of 11.5m. gallons will be used to help suppliers with quota problems due to retention of additional stock.
He said cash flow is another concern on dairy farms, where calves and store cattle must be retained due to movement restrictions.
''Typically cash flow on dairy farms is reduced by £7,000 to £20,000. However, dairy farmers should remain optimistic that they will in due course, be able to realise the value of young stock. They should cover cash flow deficits by organising overdraft or short term loans'', he advised.
With regard to the breeding of dairy cows, Dermot McCarthy stated that the Minister's Expert Group on Foot and Mouth Disease is aware of concerns regarding the current non-availability of A.I. The breeding of dairy cows needs to commence from mid April to avoid disruption in next years' milk supply pattern.
