The milk quota regulations allow a number of options to a lessor when a lease expires. The lessor may resume production, renew the lease with the same lessee, establish a lease with a close family member, and in certain very limited circumstances where the lessor is in the early retirement scheme he or she may establish a new lease with a non-family member. The lessor may also sell the quota without the land to the departing lessee, sell the quota into the restructuring scheme, or sell the land with the quota attached on the open market.
Under the single payment scheme, the dairy premium is payable in respect of eligible quota available on a producer's holding on 31 March 2005. Where a person has leased out his or her quota to a producer for the period of 1 April 1997 to 31 March 2005, the dairy premium in respect of that quota is payable to the lessee.