EU Milk Production Reduction Aid Scheme 2016

The EU Milk Production Reduction Aid scheme 2016 will provide a payment to dairy farmers who voluntarily reduce the amount of milk that they deliver to first purchasers.

The European Union is funding the scheme and the Rural Payments Agency is administering the scheme for the whole of the UK.

To apply farmers will need to:

  • indicate how much they plan to deliver during a specified three month period between October 2016 and March 2017 (the reduction period)
  • provide proof of their total milk deliveries during the same three month period in the previous year (the reference period)
  • provide proof that they were making milk deliveries to first purchasers in July 2016

Successful applicants will receive 12.23 ppl for milk not delivered in the reduction period, subject to a minimum reduction of 1500kg (around 1457 litres) and a maximum reduction of 50% of the applicant’s milk production during the reference period.  Payment will be based on the planned reduction or actual reduction, whichever is less.  If the scheme is over-subscribed, the volumes eligible for aid will be reduced.

Application forms and guidance will be available from the DEFRA website.

Producers from Northern Ireland who supply to cooperatives/purchasers in the Republic of Ireland are entitled to avail of the scheme.  They should apply, in the normal way, to the Rural Payments Agency.  The farmer will need to provide the relevant proof regarding milk supply from his purchaser.

Any queries about the EU Milk Production Reduction Scheme should be directed to the RPA:

Email ruralpayments@defra.gsi.gov.uk

Helpline 03000 200 301

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