Brussels, 23/02/2015 (Agence Europe) - On Sunday 22 February, the European Commissioner for Agriculture, Phil Hogan, said he was prepared to be flexible with regard to surplus levy payments (fines for going above milk quotas) for milk production quotas for 2014/2015.
Phil Hogan's services have prepared a proposal (in inter-service consultation at the Commission), which would stagger (interest-free) the payment of penalties owed by member states that have gone above their production quotas (Germany, Ireland, and the Netherlands, to name but a few).
This staggering of payments “is a significant move that would provide considerable flexibility to farmers and would provide a significant cash-flow benefit to those farmers who might otherwise face a substantial bill in 2015, at a time when they may be investing to take advantage of the post-quota environment”, explained Phil Hogan.
This draft Implementing Regulation aims to ease the financial burden for producers who have to pay a surplus levy related to the milk quota year 2014/2015 by allowing the Member States to collect the levy due in three equal instalments made in 2015, 2016 and 2017. As the regulation does not change the obligation of the Member States to pay the levies to the Commission by 30 November 2015 (so it will be available as assigned revenue in budget year 2016), it has no financial impact.
Once the proposal is formally adopted by the Commission, it will need to be voted on at the management committee. This is not urgent because the regulation has to be adopted before the end of March, when the milk quota period expires.
Speaking in Paris, Hogan pointed out at the Salon de l'agriculture that the milk sector is approaching one of its most historic moments with the abolition of milk quotas on 31 March. He indicated that he understood the fears of certain producers regarding price volatility, following the end of quotas, but said that he was quite confident in this respect and said that we are not experiencing a crisis on the milk market. He acknowledged that there were difficulties in the sector, due to the sharp fall in prices but said that “prices today are still roughly where they were two years ago”. He promised that he would remain “vigilant” in the months following quota abolition and would not hesitate to use, if necessary, the safety net tools available (possible market measures). (Lionel Changeur)