12 Jul 2011
SUPERLEVY: IFA CALLS ON CO-OPS TO BE MINDFUL OF OVERQUOTA OF FARMERS’ CASH FLOWDairy
IFA National Dairy Committee Chairman Kevin Kiersey 3 urged those co-ops which have started collecting superlevy from the farmers who have filled their entire quota, to be careful when so doing not to leave farmers in difficult cash flow situations.
“A small number of producers in certain co-ops have already, or will soon have, their entire annual quota filled. With very limited availability of quota through the oversubscribed temporary leasing scheme, and with most co-ops well over quota on a year-to-date basis, those farmers could face a superlevy fine by year end,” Mr Kiersey said.
“While co-ops are legally entitled to start deducting the superlevy penalty early for those producers, they must do so very carefully to avoid leaving farm families with insufficient cash in any one month,” he said.
Mr Kiersey said farmers should take every possible measure to minimise their exposure to superlevy in the current year.