On the 18th June 2020 the Welsh Government published details of the dairy support scheme which is designed to support the dairy producers hardest hit by the recent exceptional market conditions due to the COVID-19 pandemic.

The scheme provides support to eligible dairy farmers in Wales who produce milk and who have seen a decreased amount for the product as bars, restaurants and cafés have had to close.

The following are the main points:

  1. The scheme is to assist the hardest hit dairy producers following severe impacts in some parts of the sector. It is designed to assist producers with meeting their fixed costs to sustain productive capacity for milk whilst maintaining environmental and animal and welfare standards.

Eligible Payments

Those who are eligible will be entitled to a one off payment of up to £10,000 to cover 70% of their lost income.  The purpose of the payment is to help them to continue to meet fixed costs and sustain production capacity.

Who is eligible?

  1. All cattle sheep goat and buffalo dairy producers who can evidence a milk price reduction of 25% or over from sales of milk under contract to a third party/processor.
  1. Any producers in Wales are eligible.  If you are a cross-border farmer you can still apply if the majority of your land is located in Wales and you receive your Basic Payment Scheme 2019 payment from Rural Payments Wales. 
  1. You will need to demonstrate a reduction of 25% or more in the average price of the milk in April and subsequently May when compared to February 2020.  You cannot therefore apply for May losses unless you have first suffered a loss of 25% or more to the milk price in April.

Who are not eligible?

  1. Direct sellers of milk.
  1. You will not be eligible if you were in financial difficulty on 31st December 2019.

How to apply

Eligible dairy producers must register on RPW on line.  You must submit payment statements issued by your milk buyer for the full calendar months of February, April and May 2020 showing:

  1. Total volume of milk collected by first buyer in a net calendar month.
  1. The price you were paid by your buyer for that calendar month. 
  1. Non collected milk can form part of the payment calculation.

For full details of the calculation please go to the website.

When will payments be made?

The on-line application window opens on 18th June 2020.  Completed applications and all documentation must be submitted no later than 14th August 2020.  This date will not be extended.

The rules booklet can be accessed here

If you have any queries please do not hesitate to contact Huw Wyn Williams head of our Agricultural Department or simply use the Contact Us form at the top of the page.

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