Dairy farmers facing the dilemma of either getting out of milk-production or expanding to meet the challenges of a reformed CAP were warned yesterday to tread carefully.
Teagasc economist Ms Thia Hennessy advised them not to sell their quota, which is a licence to produce milk, until the CAP-reform measures were implemented in 2005. She said farmers who bought a quota after April 1st, 2005, would not receive compensation for loss of supports, but that compensation would be paid to the farmer ceasing milk-production.
They could either sell their quota in 2004, get a higher price but forfeit their compensation, or wait until 2005, get a lower quota price but establish their entitlement to compensation.