Under radical new proposals from the Department of Agriculture, beef and tillage farmers will be allowed to buy milk quota through the next round of the milk quota exchange.
The quota will be for the 2009/2010 milk production year, 25 years after milk quotas effectively locked all non-dairy farmers out of milk production in Ireland.
Apart from a few exceptions, purchasing a dairy farm with quota attached was the only option for entering dairying throughout that period.
The move is part of a series of policy measures aimed at preparing the Irish industry for the abolition of milk quotas across Europe in 2015.
While the IFA and Macra support the concept, the proposal will meet stiff opposition from the ICMSA. "We are against the proposal; there are still a lot of existing suppliers who need quota to remain viable,'' ICMSA president Jackie Cahill told the Irish Farmers Journal. "All you will do is push up the price of quota and restrict supply.''
Last week, Minister for Agriculture Brendan Smith signed into law the 2008 Milk Quota regulations, which radically reduced the restrictions on Milk Production Partnerships and allow milk quotas to be leased to companies controlled by farmers. The new rules also allow qualified farm managers to purchase quota and take it with them if they change jobs.
The first round of quota trading for the 2009/2010 milk production year is due to open for bids and offers this October. The Department of Agriculture will now propose that non-dairy farmers be allowed to bid for milk quota in this exchange. The aim of the measure is to facilitate the entry of new blood into the dairy industry, particularly those with large land banks of quality land.
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