EC to introduce staggered superlevy payments

Published 12 March 15

The European Commission’s (EC) proposal to introduce staggered payments for the final year of superlevy was agreed on 11 March.  The agreement will allow farmers to spread superlevy payments over 3 years which will reduce potential cash flows issues. This could mean some of UK’s competitors will be able to increase production quicker than if they had to pay superlevy in one lump sum.

The scheme, which is voluntary for Member States, will let producers that go over quota to pay the superlevy in three equal interest free instalments, due by 1 October in 2015, 2016 and 2017. However, while farmers will be able to spread the cost, the Member States will still be required to pay the full amount of the superlevy between 16 October and 30 November 2015, leaving the EU budget unaffected.

If a Member State decides to implement the staggered payment scheme, then it will be up to dairy processors to pay the instalments when they are due. The processor, in turn, can agree further payment plans with their producers if they so wish. Producers who want to pay their entire superlevy at once will still have the option to do so.