How much is milk quota worth?

Today quota is bought and sold. In Ontario, the price of dairy quota reached a high of $33,805 (per kilo of butterfat, but, roughly, per cow) before being capped and reduced to its current price of $24,000. In Alberta, where quota are traded freely, the price is more than $40,000.

Do milk quotas still exist?

Milk quotas were attached to land holdings and represented a cap on the amount of milk that a farmer could sell every year without paying a levy. Milk quotas were assets and could be bought and sold or acquired or lost by other means and so there was a market for them. Milk quotas were withdrawn on 31 March 2015.

How do milk quotas work?

Dairy farmers are only paid for milk they produce within their quota. If an individual farmer produces under his/her monthly quota, the remaining quota capacity is temporarily allocated to the other dairy farmers in the province to be filled. This ensures consumers will have access to a continuous supply of fresh milk.

Why was the milk quota abolished?

The primary reasons for deciding to end milk quotas was that there has been a considerable increase in consumption of dairy products in recent years, especially on the world market – projected to continue in future – while the quota regime is preventing EU producers from responding to this growing demand.

What are the quotas for the dairy industry?

Direct sales quota, which were the ceiling amount of dairy produce that can be sold directly from an agricultural holding without liability for the levy; Wholesale quota, which were the ceiling amount of dairy produce that can be sold to a wholesaler from an agricultural holding without liability for the levy;

Can a milk quota be transferred without payment?

Milk quotas could also be transferred without payment if the tenant of a holding under the Agricultural Holdings Act 1986 ceased to use that land for dairy farming purposes for five years and transferred that quota to other land that he held for dairy farming purposes if there was no quota protection clause in the tenancy.

What’s the difference between Slom quota and milk quota?

Purchaser quota, which were the ceiling amount of dairy produce that a purchaser can buy from a wholesaler without liability for the levy; SLOM quota, which was formerly a nominal milk quota allocated to farmers who had ceased or reduced dairy production. This was also subsumed into general milk quotas.

When to use quota in the California market?

Schuil & Associates is your source for California Quota transactions. Quota is a terrific tool to use either when expanding your operations (sell quota) or when it is time to be less aggressive and guarantee greater profits (buy quota). Don’t understand the California Quota? Give us a call.