BIM55335 - Farming quotas: milk quota

Milk quotas were introduced in the UK and other EC Countries in 1984 as a method of reducing over-production of milk. Essentially a milk quota allows a farmer to produce up to a given quantity of milk from his or her holding in any one year without the risk of having to pay `superlevy' (see BIM55340).

TRANSFERS OF MILK QUOTA

There are very active markets in both the sale (see BIM55315) and the leasing (see BIM55320) of milk quota. The leasing period is normally the year ending 31 March.