Formation of Milk Production Partnership

Formation of Milk Production Partnership

1

NOTICE TO PURCHASERS (CO-OPS), SUPPLIERS OF MILK AND OTHERS INTERESTED IN FARMING IN PARTNERSHIP

DETAILED RULES FOR THE OPERATION OF

MILK PRODUCTION PARTNERSHIPS (MPPs)

(Effective from 8 November 2011)

These Detailed Rules for the Operation of Milk Production Partnerships (MPPs), are provided for under the European Communities (Milk Quota) Regulations, 2008 (SI No 227/2008 )

Additional information is available from Teagasc at this address:

CONTENTS

Page

A.ADMINISTRATION OF SCHEME…………………….. ……….3

B.COMPOSITION OF MPPs………………………………………..3

C.APPLICATIONS FOR REGISTRATION…………………………3

D.CONDITIONS OF REGISTRATION………………………………4

E.CERTIFICATES OF REGISTRATION…………………………...5

F.MINIMUM TERM OF A MPP………………………………………5

G.DISTANCE BETWEEN PARTNERSHIP MEMBERS...... 5

H.OFF-FARM INCOME THRESHOLD……………………………..6

I.ACCESS TO QUOTA FROM THE MILK

QUOTA TRADING SCHEME……………………………………..6

J.APPORTIONMENT OF QUOTA UPON

DISSOLUTION OF A MPP………………………………………..6

K.USE OF QUOTA OBTAINED BY A

CATEGORY B.1 (ii) NEW ENTRANT

IN A MPP…………………………………………………………...7

L.CO-OWNERSHIP OF AGRICULTURAL

LANDS FORMING PART OF A MPP…………………………....7

M. QUOTA TRANSACTIONS INVOLVING

PARTNERS OF A MPP………………...... ………7

ANNEX I LIST OF AGRICULTURALQUALIFICATIONS………….8

ANNEX IILIST OF FARM MANAGER QUALIFICATIONS…………11

ANNEX IIICERTIFICATE OF LANDS EXCLUDED………………….12

ANNEX IVCERTIFICATE OF REGISTRATION……………………… 13

ANNEX VNOTICE OF REMOVAL OF REGISTRATION…………… 14

ANNEX VIMILK QUOTA TRANSFER FORM…………………………. 15
A.ADMINISTRATION OF SCHEME

1.Teagasc will manage the Scheme on behalf of the Department of Agriculture, Food and the Marine.

B.COMPOSITION OF MILK PRODUCTION PARTNERSHIPS

1.A Milk Production Partnership shall consist of at least one person from category (i) below and one or more person(s) from any of the categories (i) to (iv).

(i) a milk producer who has produced and delivered milk in each of the two milk quota years preceding the milk quota year in which the partnership is established;

(ii)a new entrant(s) with the appropriate qualifications (Annex I, which may be amended from time to time), who is participating with a parent(s) who is a milk producer;

(iii) other farmers who have been farming in their own right for a minimum of two years immediately preceding the milk quota year in which the partnership is established;

(iv) a farm manager, with the appropriate qualifications (Annex II, which may be amended from time to time), followed by at least three years employment in farm management.

Other persons aside from those described in categories (i) to (iv) above, for example spouses, co-owners or family members, may also be registered as participants in the partnership but will not have access in their own right to milk quota from the Milk Quota Trading Scheme or the Temporary Leasing Scheme.

A person will be deemed to continue to qualify under each of the above categories if, for part or all of the period concerned, they have incorporated their status and continue to hold a majority shareholding in the relevant company. Similarly, in the case of a parent in partnership with a new entrant under category B.1 (ii), the parent may be a former milk producer who has incorporated their status and continues to hold a majority shareholding in the relevant company. However, at any one time a person may not be a partner as a natural person and as a shareholder or director in a company that is a partner in the same Milk Production Partnership. Similarly, at any one time a person may not be a shareholder or director in more than one company that are partners in the same Milk Production Partnership.

Participants in Milk Production Partnerships may have their categorisation altered as a result of changed circumstances; for example, where a new entrant farming in partnership with a parent acquires a holding and farms same for a minimum of two years, their categorisation may change from ‘new entrant’ [category B.1 (ii)] to ‘milk producer’ or ‘other farmer’ [category B.1 (i) or B.1 (iii)].

2.A qualified relative, as defined in SI No. 227 of 2008, who succeeds, on transfer by sale, lease, gift or inheritance, a “milk producer”, as defined in B.1 (i) above or “other farmer” as defined in B.1 (iii) above, and who does not meet the two-year farming requirement, may apply to Teagasc to be considered for registration as a partner in a milk production partnership.

C.APPLICATION FOR REGISTRATION OF MILK PRODUCTION PARTNERSHIPS

1.Teagasc is the appointed Registrar for Milk Production Partnerships. Applications for registration should be sent to the Dairy Partnerships Registration Office, Teagasc, Moorepark, Fermoy, Co Cork. Phone number: 025 42244 and email:

Each applicant must indicate the category at B.1 under which they are applying. The following items should accompany all applications:

(i)a copy of a written partnership agreement that states the address at which the milk production partnership records, books and other documents are to be retained;

(ii)a statement from each existing producer’s Milk Purchaser(s) containing the producer’s permanent milk quota at the date of execution of the partnership agreement and details of quota and deliveries over the previous two milk quota years;

(iii)a map of each applicant’s entire agricultural lands clearly identifying the location of the lands to be made available to or excluded from the partnership;

(iv)satisfactory proof of ownership in the case of owned land and a copy of written lease(s) for all leased land;

(v)where appropriate, proof that such lands have been used by the applicant, for agricultural purposes, in the previous two years (e.g. proof of payment under the Single Farm Payment Scheme, CMMS Identifier);

(vi)the written approval of the Minister in respect of each herd of bovine animals to be kept by the proposed partnership of both the herd number and the keeper;

(vii)the PPS number of each applicant;

(viii)birth certificate for each applicant;

(ix)the appropriate fee;

(x)evidence from a financial institution stating the account through which all partnership transactions will be carried out;

(xi)in the case of New Entrants and Farm Managers, evidence of the appropriate agricultural qualifications;

(xii)any additional documentation and information, which may be requested by Teagasc.

D.CONDITIONS OF REGISTRATION

1.The partnership agreement must cover the minimum term at F.1 below

2.The partners must agree to pool all agricultural lands, assets, entitlements and quota owned, leased or at their disposal within the State at the time of the partnership agreement and acquired during the period of the agreement but excluding:

(i)lands certified by Teagasc as lands which are used solely or primarily for the purpose of pig, poultry, mushroom, forestry, bloodstock, intensive horticultural cropping, on-farm milk processing or electricity generation enterprises, where such enterprise has been excluded from the partnership by agreement;

(ii)leased lands included in the partnership lands at some time where the lease expired or was earlier determined and the lease was not renewed;

(iii)lands in respect of which a public authority possessing compulsory purchase powers has exercised those powers.

3.Notwithstanding the above, and subject to prior written approval by Teagasc, certain lands and/or assets may be excluded from the partnership, if Teagasc is satisfied that in the context of the scheme and the circumstances of the partnership the exclusion of these lands and/or assets would not constitute sufficient cause to remove the partnership from the MPP register.

4.A new entrant under B.1 (ii) or (iv), who is under 35 years of age, must not exceed the off farm income limit at H.2 below in each tax year during which the partnership operates.

  1. Where a producer under B.1 (i) consists of more than one person then each such person must be an individual partner in the partnership.
  1. A person may not be involved in more than one Milk Production Partnership at any one time.

E.CERTIFICATES OF REGISTRATION

1.A milk production partnership may not operate until a Certificate of Registration is obtained from Teagasc.

2.Where Teagasc is satisfied that it is appropriate to register a partnership it shall issue a Certificate of Registration.

3.A Certificate of Registration is valid for a maximum of one year.

4.An application for a new Certificate of Registration must be lodged with Teagasc at least 30 days prior to the anniversary date of the partnership and must be accompanied by the appropriate fee.

5.The Certificate of Registration will be issued to the registered address of the partnership referred to at C.1 (i) above, with copies sent to the Minister and the partnership’s Milk Purchaser.

6.Where a MPP is removed from the MPP Register a copy of the Notice of Removal will be sent to the Minister and the relevant Milk Purchaser(s).

F.MINIMUM TERM OF A MILK PRODUCTION PARTNERSHIP

1.The minimum term of a Milk Production Partnership will be five years.

2.An application may be made to Teagasc in cases of force majeure or other duly justified cases, for an exemption from the minimum term.

G. DISTANCE BETWEEN PARTNERSHIP MEMBERS

1. The boundary or any part of the boundary of lands provided by a partner on which milk has been produced in the two most recent years of milk supply, where the said lands are contiguous or, if not contiguous, the lands on which the partner’s milking facilities are/were located shall be not more than 100 kilometres in distance from the boundary or any part of the boundary of another partner’s or proposed partner’s lands on which milk has been produced in the two most recent years of milk supply, where the said lands are contiguous or, if not contiguous, the lands on which the other partner’s or proposed partner’s milking facilities are/were located. In the case of other farmers[category B.1 (iii) above], where the lands are not contiguous, the relevant lands shall be those on which the main farmyard is located.

H.OFF-FARM INCOME THRESHOLD

1.Off-farm income, in relation to any partner in a milk production partnership named at D4 above, means the aggregate of any income which is earned by that partner from the carrying on of a trade, profession, the holding of an office or the exercise of an employment other than income derived from -

(i)the partnership, and

(ii)any pig, poultry, mushroom, forestry, bloodstock, intensive horticulture cropping, on-farm milk processing or electricity generation enterprises.

2.The current off-farm income for persons named at D.4 above must not exceed €40,000 for each tax year during which the partnership exists.

I.ACCESS TO QUOTA FROM THE MILK QUOTA TRADING SCHEME

1.Access to quota from the Milk Quota Trading Scheme for each category at B.1 above will be set out in the detailed rules of that scheme.

J.APPORTIONMENT OF QUOTA UPON DISSOLUTION OF A PARTNERSHIP

1.Where a Milk Production Partnership is removed from the Milk Production Partnership (MPP) Register with effect from the first day of a milk quota year the amount of quota allocated to existing partners will be the amount of quota held by each partner at that time.

2.Where a Milk Production Partnership is removed from the MPP Register, on a date other than the first day of a milk quota year, the amount of milk quota transferred to each existing partner for the remainder of the milk quota year in question, will be the unused quota of the partnership divided between the existing partners in proportion to each partner’s milk quota at the date of removal. The balance of the quota will also be divided up in the same proportion with effect from the first day of the following milk quota year. A partner exiting a partnership who does not continue in milk production will be subject to the normal dormancy rules.

3. (i) notwithstanding 1 and 2 above, a partner who entered into partnership under category B.1 (ii), and who subsequently exits the partnership and does not continue in milk production, must sell the entire quota purchased from the Milk Quota Trading Scheme back into the same pool from which it was purchased, or its replacement;

(ii) in cases where partnerships dissolve through force majeure, the participating parent(s) of a new entrant at B(ii) may apply to the Minister to retain the quota obtained by the new entrant, provided they demonstrate a clear commitment to continue in full time milk production.

K.USE OF QUOTA OBTAINED BY A CATEGORY B.1 (ii) NEW ENTRANT IN A MILK PRODUCTION PARTNERSHIP

1. Any quota obtained by a category B.1 (ii) new entrant from the Milk Quota Trading Scheme cannot be utilised until the Milk Production Partnership is registered and the Milk Purchaser has received notification of its registration from Teagasc.

2. If for any reason the Partnership is not registered by the due date the quota will be redistributed by the relevant Milk Purchaser to those producers who participated in the Milk Quota Trading Scheme from which the quota was purchased. The original purchaser of the quota will be reimbursed at the same rate at which he/she purchased the quota.

L.CO-OWNERSHIP OF AGRICULTURAL LANDS FORMING PART OF A MILK PRODUCTION PARTNERSHIP

1. Where a proposed partner in a milk production partnership is a co-owner of agricultural lands all of the other co-owners of those lands must become partners in the same partnership unless any or all of the other co-owners have obtained, on the recommendation of Teagasc, an exemptionfrom being a partner from the Minister.

M.QUOTA TRANSACTIONS INVOLVING PARTNERS OF A MILK PRODUCTION PARTNERSHIP

1.All Regulations involving quota transactions shall apply to each individual partner within a partnership as defined in B.1 (i) to (iv) above and may not be availed of by the partnership itself.

Department of Agriculture, Food and the Marine
November 2011Annex I

List of Agricultural Qualifications

(NB: Evidence of the Award of the Exact Qualification as Listed Below Must be Provided)

Further Education Award Titles (Major)
General Agriculture / ACOT/Teagasc Certificate in Farming or NCVA Certificate in Rural Enterprise
FETAC Certificate in Farming
FETAC National Vocational Certificate in Rural Enterprise – Level 2
FETAC National Vocational Certificate in Rural Enterprise – Level 5
FETAC Level 6 Advanced Certificate in Farming
FETAC Level 3 Vocational Certificate in Agriculture
FETAC Level 6 Vocational Certificate in Agriculture
FETAC Level 6 Advanced Certificate in Agriculture
Equine / Teagasc Certificate in Horse Breeding and Training (Part 2)
FETAC (Teagasc) Certificate in Horse Breeding and Training (Part 2)
FETAC Level 3 Vocational Certificate in Horse Breeding and Training
FETAC Level 6 Vocational Certificate in Horse Breeding &Training – Equitation or Stud
Management
FETAC Level 6 Advanced Certificate in Horsemanship
FETAC Level 6 Advanced Certificate in Stud Management
Hort / FETAC Level 3 Vocational Certificate in Horticulture
FETAC Level 6 Vocational Certificate in Horticulture
FETAC/Teagasc Diploma in Horticulture
FETAC Level 6 Advanced Certificate in Horticulture
Forestry / FETAC Level 3 Vocational Certificate in Forestry
FETAC Level 6 Vocational Certificate in Forestry
FETAC Level 6 Advanced Certificate in Forestry
Dairying / Teagasc/FETAC Advanced Certificate in Agriculture– Dairy Herd Management
FETAC Diploma in Agriculture (Teagasc) – Dairy Herd Management
FETAC Level 6 Advanced Certificate (Teagasc) in Agriculture - Dairy Herd Management
FETAC Level 6 Advanced Certificate in Dairy Herd Management
Machinery / Teagasc/FETAC Advanced Certificate in Agriculture– Farm Machinery
Teagasc Diploma in the Operation, Care and Maintenance of Farm Machinery
Teagasc/FETAC Diploma in Agriculture – Farm Machinery
FETAC Level 6 Advanced Certificate (Teagasc) in Agriculture – Farm Machinery
FETAC Level 6 Advanced Certificate in Agricultural Mechanisation
Mach/Crops / FETAC Advanced Certificate in Agriculture– Machinery and Arable Crops
FETAC Diploma in Agriculture (Teagasc) – Machinery and Arable Crops
FETAC Level 6 Advanced Certificate (Teagasc) in Agriculture – Machinery and Arable Crops
FETAC Level 6 Advanced Certificate in Machinery and Crop Management
Drystock / FETAC Advanced Certificate in Agriculture – Drystock Management
FETAC Level 6 Advanced Certificate in Agriculture – Drystock Management
FETAC Level 6 Advanced Certificate in Drystock Management
Farm Management / Teagasc/FETAC Advanced Certificate in Agriculture– Farm Management
FETAC Level 6 Advanced Certificate in Farm Management
FAB First Farm Management Certificate/Certificate in Farm Management
FAB/FETAC Certificate in Farm Husbandry
FAB Trainee Farmer Certificate
FAB/FETAC Certificate in Applied Farm Management
FAB/FETAC Certificate in Farm Business Management
Higher Education Award Titles
General Agric / NCEA/HETAC/Individual IT College National Certificate in Agriculture
HETAC/Individual IT College Higher Certificate in Agriculture
HETAC/Individual IT College National Diploma in Agriculture
HETAC/Individual IT College Bachelor of Science in Agriculture
Hort / NCEA/HETAC/Individual IT College National Diploma in Horticulture
HETAC/Individual IT College Ordinary Bachelor Degree in Horticulture
HETAC/Individual IT College Bachelor of Science in Horticulture
Athlone IT / NCEA/HETAC National Certificate in Business in Equine Studies
HETAC Higher Certificate in Business in Equine Studies
HETAC Bachelor of Business in Equine Studies
Limerick IT / HETAC National Certificate in Technology in Agricultural Mechanisation
HETAC Higher Certificate in Technology in Agricultural Mechanisation
Waterford IT / NCEA/HETAC National Certificate in Science in Agricultural Science
HETAC/Individual IT College Higher Certificate in Science in Agricultural Science
NCEA/HETAC National Diploma in Science in Agricultural Science
HETAC/WIT Bachelor of Science in Agricultural Science
HETAC/WIT Bachelor of Science (Honours) in Land Management, Agriculture
HETAC/WIT Bachelor of Science (Honours) in Land Management, Horticulture
HETAC/WIT Bachelor of Science (Honours) in Land Management, Forestry
HETAC/WIT National Diploma in Forestry
HETAC/WIT Bachelor of Science in Forestry
Galway-Mayo IT / NCEA/HETAC National Certificate in Business in AgriBusiness
HETAC/GMIT Higher Certificate in Business Studies (Agri-Business)
HETAC/GMIT Bachelor of Business in Rural Enterprise and Agri-Business
HETAC/GMIT Bachelor of Science in Agriculture and Environmental Management
UCD / Degree in Agriculture/Horticulture/Forestry from UCD
Primary Degrees awarded by the Faculty of Agriculture at UCD – NUI
Bachelor of Agricultural Science – Animal & Crop Production – UCD
Bachelor of Agricultural Science – Animal Science – UCD
Bachelor of Agricultural Science – Food & Agribusiness Management – UCD
Bachelor of Agricultural Science – Forestry – UCD
Bachelor of Agricultural Science – Horticulture, Landscape & Sportsturf Management – UCD
Bachelor of Agricultural Science – Agri-Environmental Sciences - UCD
Vet UCD / Degree in Veterinary Science
Bachelor of Veterinary Science – UCD
Limerick / Bachelor in Science in Equine Science Degree – UL
Diploma in Equine Science – UL
Dairy Science / Degree/Diploma in Dairy Science plus a FETAC Award for an 80-hours Teagasc approved
training programme**
Rural Science / Degree/Diploma in Rural Science plus a FETAC Award for an 80-hours Teagasc approved
training programme**
Degree/Diploma in Science (Education) in Biological Science plus a FETAC Award for an 80-
hours Teagasc approved training programme**
Bachelor of Science (Education) in Biological Sciences plus a FETAC Award for an 80-hours
Teagasc approved training programme**
Equivalent Qualifications
Achievement of the required standards for the second (2nd) year (eligible to proceed to year three as testified by the Third Level Institution) of a fulltime ab initio Third Level course of three years duration (or more) in any discipline and be a holder of a FETAC Award for an 180 hours Teagasc approved training programme***, both being completed prior to 31 December 2010
Non-agricultural awards or qualifications (FETAC/HETAC/IT Colleges/Universities/foreign awards) placed at or equivalent to Level 6 or higher on the National Framework of Qualifications (NFQ) and a FETAC award for an 180 hours Teagasc approved training programme***, both being completed prior to 31 December 2010
FETAC Level 6 Advanced Certificate in Agriculture (to be awarded on completion of a special Teagasc training programme for those who hold a non-agricultural award at Level 6 or higher on the NFQ)

** The Teagasc approved Training Programme will comprise a minimum 80 hours course in farm management. In addition, applicants must achieve the minimum stipulated standards for assessments in the course and achieve the appropriate FETAC certificate.