Dairy premium deadline looming

The NFU is urging dairy farmers to ensure they have completed and returned IACS forms to the Rural Payments Agency (RPA) before next week's deadline (17 May).

As many as 2,000 dairy farmers across England and Wales will be filling in IACS forms for the first time this year in order to receive the dairy premium and additional dairy payment, agreed as part of the reforms under the Common Agricultural Policy (CAP).

The premium and additional payment - which will amount collectively to around 0.8 pence per litre for 2004 - is based on the net amount of milk quota held by a producer on 31 March 2004.

Gwyn Jones, Chairman of the NFU's dairy board, while urging farmers to be proactive, also issued a note of caution to the rest of the dairy supply chain: "These payments are intended as partial compensation to primary producers for support price cuts - it should not be taken by the rest of the industry as an excuse to squeeze producer margins further.

"From 2005 the premium will be decoupled, which will open up a number of opportunities to dairy farmers. If the supply chain wants UK dairy farmers to continue to produce a quality product, then the return must deliver profitable returns to farmers, irrespective of CAP support payments."

The NFU has worked with the RPA to ensure that advice given on the completion of IACS forms is a straightforward and uncomplicated as possible. Farmers looking for further guidance should refer to the RPA website at www.rpa.gov.uk