The decision to introduce the 20% requirement to this year's Temporary Leasing Scheme was informed, as always, by my stated objective of ensuring that as much milk quota as possible is made available on a permanent basis to active, committed milk producers. Unfortunately, in recent years many quota holders have repeatedly supplied nominal or token amounts of milk to their Co-ops and temporarily leased the balance of their quotas. While this may have kept their own options open, the practice has effectively slowed down the permanent transfer of quota to active producers who needed to acquire it. Producers must, therefore, now demonstrate their bona fides by supplying at least 20% of their quotas before they can avail of temporary leasing. However, provision continues to be made for producers affected by force majeure or other duly justified circumstances to seek an exemption from the 20% requirement.
It should be noted also that this change to the regulations was made following full consultation with the Milk Quota Review Group, which is comprised of the farming organisations and ICOS, and advises me on all matters relating to the milk quota regime.
