Milk quota holders who have produced no milk at all this year need to market their quota as soon as possible to avoid it being confiscated by the RPA, quota brokers have warned.
Demand is limited but activity has increased slightly recently with the approach of the end of the milk year, said Julia Clark of Townsend Chartered Surveyors, Exeter.
Quota is generally worth only 0.25 to 0.3p/litre, but the value for those non-producers will be lost unless it is realised before 31 March, she warned.
“There is really no reason to delay as it is unlikely that values will rise by 31 March. The sale market is quiet, although there is some activity to realise capital losses on quota values and then use these to offset against capital gains elsewhere,” said Mrs Clark.
Transfer forms must reach RPA by close of business on 31 March, but, ideally, deals need to be agreed a couple of weeks in advance of this so that brokers have time to complete checks and paperwork.
Last year, RPA confiscated a total of 117,888,628 litres of quota from non-producing quota holders, with 328 holders having more than 50,000 litres confiscated.