A new dairy response
fund will open for applications on 18 June,
Farming Minister confirmed today.
With some dairy farmers facing financial difficulties and
excess milk due to the coronavirus outbreak, the new fund
will provide up to £10,000 each to help those dairy farmers
most in need of support to sustain their business.
Recognising that dairy farmers have fixed costs of
production which some may have struggled to meet during the
coronavirus outbreak, from 18 June farmers in England who
have experienced 25% price losses in April and May will be
able to apply for a single payment from the fund.
This funding, which will be paid out from 6 July, will help
farmers maintain production capacity without impacts on
animal welfare, following reduced demand for milk products
as restaurants, bars and cafes have closed.
Qualifying farmers can apply for support to cover up to 70%
of their losses due to coronavirus disruption across April
and May, up to a total amount of £10,000 each.
Farming Minister said:
Our dairy farmers have a vital role to play in feeding
the nation and we want to ensure they are fully supported
at this difficult time.
The application process for our new dairy fund will begin
shortly, helping farmers who have suffered losses to get
the financial assistance they need to keep production
going.
There is no cap set on the number of farmers who can
receive this support or on the total funding available,
and we will do everything we can to help our farmers at
this time.
To be eligible for support from the fund, farmers will need
to demonstrate that they have suffered a reduction in the
base price paid for their milk of 25% or more in April 2020
when compared with February 2020.
Recognising the need for the rapid processing of
applications and payments, eligible farmers will be able to
submit applications directly to the Rural Payments Agency
(RPA) from 18 June, with payments expected from 6 July.
Further details of the fund and application process will be
shared by the RPA in the coming weeks, but dairy farmers
who think they will be eligible can get ready now by
preparing details of their production levels for February,
April and May 2020.
The funding will be provided as a one-off payment up to a
maximum of £10,000 to cover around 70% of eligible farmers’
lost income during April and May to help them to continue
to meet fixed costs and sustain production capacity without
impacts on animal welfare.
Many milk buyers have already been able to reroute their
milk supplies to retailers and supermarkets following the
government’s move to temporarily relax some elements of UK
competition law to allow suppliers, retailers and logistics
providers in the dairy industry to work more closely
together.
The UK Government is also supporting dairy farmers through
the Agriculture and Horticulture Development Board (AHDB)
and Dairy UK’s £1 million
promotional campaign to help increase sales by
encouraging the public to drink more milk.
