Deadline for selling milk quota approaches
Farmers who went out of milk in the past milk year have just two weeks to sell their quota before it is confiscated.
Those who left production between 1 April 2011 and 31 March 2012 need to arrange sale of their quota to avoid having it taken into the national reserve after 31 March 2013.
Quota for 4% butterfat is currently trading at 0.1p/litre, half the value of the same time last year. The reason for the fall in prices is lack of interest, according to surveyor Townsend, as from 2015 the EU will phase out the quota.
Most purchasers were producers who want to replace quota sold earlier in the year. This would have been sold to crystallise the loss in value of quota they had bought previously, to offset a capital gain elsewhere in their business, said Townsend.
Milk producers should check with their accountants, as they may be able to benefit by trying to sell a portion of their quota to create a capital loss before the end of this month, advised Julia Clark from Townsend.
“There aren’t as many farmers doing this as should be, as it’s a handy tool for the accountant,” she said.