The Milk (Cessation of Production) (Scotland) Scheme 1987

The landlord’s amount

13.—(1) Where the tenant is eligible under paragraph 4(1)(a) the landlord’s amount shall be such an amount as an arbiter may determine as equal to the full rate of compensation for so much of the relevant quota as consists of–

(a) standard quota or, where it is less, allocated quota multiplied by the landlords’s fraction; and

(b) transferred quota as follows–

(i) where the landlord bore the whole of the cost of the transaction by virtue of which the transferred quota was transferred to the tenancy, the whole of the transferred quota; and

(ii) where the landlord bore only a part of that cost, the corresponding part of the transferred quota.

(2) For the purposes of subparagraph (1)–

(a) “landlord’s fraction” means the fraction of which–

(i) the numerator is an amount equal to the reduction in the annual rental value of the tenancy if farmed as a non-dairy unit; and

(ii) the denominator is an amount equal to the annual rental value of the tenancy farmed as a dairy unit;

(b) in assessing the rental values referred to in heads (a)(i) and (ii) the notional rent determinations shall be based respectively on the use of the tenancy for such enter prises other than dairying as a reasonably competent tenant would pursue and the current use of the tenancy as a dairy unit.

(3) Where the tenant is eligible under paragraph 4(1)(b) the landlord’s amount shall be such an amount as an arbiter shall determine as equal to the full rate of compensation for so much of the relevant quota as is surrendered under this Scheme and consists of–

(a) standard quota or, where it is less, allocated quota multiplied–

(i) firstly, by the landlord’s fraction; and

(ii) secondly, by a fraction of which the numerator is the quota surrendered and the denominator is the registered quota; and

(b) transferred quota as follows —

(i) where the landlord bore the whole of the cost of the transaction by virtue of which the transferred quota was transferred to the tenancy, the whole of the transferred quota multiplied by a fraction of which the numerator is the quota surrendered and the denominator is the registered quota; and

(ii) where the landlord bore only a part of that cost, the corresponding part of the transferred quota multiplied by a fraction of which the numerator is the quota surrendered and the denominator is the registered quota.

(4) For the purposes of subparagraph (3)–

(a) “landlord’s fraction” means the fraction of which–

(i) the numerator is an amount equal to the reduction in the annual rental value of the tenancy as a consequence of the surrender of the quota; and

(ii) the denominator is an amount equal to the annual rental value of the tenancy assuming no quota is surrendered;

(b) in assessing the rental values referred to in heads (a)(i) and (ii) the notional rent determinations shall be based respectively on the use of the tenancy for such enter prises as a reasonably competent tenant would pursue and the current use of the tenancy assuming no surrender of quota.

(5) Subject to the provisions of subparagraph (6), the standard quota for any tenancy shall be calculated by multiplying the relevant number of hectares by the prescribed standard yield per hectare and for the purposes of this subparagraph and subparagraph (6)–

(a) “relevant number of hectares” means the average number of hectares of the tenancy used during the relevant period for the feeding of dairy cows kept on the tenancy or, if different, the average number of hectares of the tenancy which could reasonably be expected to have been so used (having regard to the number of grazing animals other than dairy cows kept on the tenancy during that period); and

(b) “prescribed standard yield per hectare” means, in respect of each of the breeds shown in column 1 of the Schedule to this Scheme, the number of litres shown opposite that breed in–

(i) column 2(a), in relation to severely disadvantaged land,

(ii) column 3(a), in relation to disadvantaged land, and

(iii) column 4(a), in relation to any other land.

(6) Where, by virtue of the quality of the land in question or the climatic conditions in the area, the reasonable amount is greater or less than the prescribed average yield per hectare, subparagraph (5) shall not apply, and the standard quota shall be calculated by multiplying the relevant number of hectares by such proportion of the prescribed standard yield per hectare as the reasonable amount bears to the prescribed average yield per hectare, and for the purposes of this subparagraph–

(a) the amount of milk to be taken as the prescribed average yield per hectare in respect of each of the breeds shown in column 1 of the Schedule to this Scheme shall be the number of litres shown opposite that breed in–

(i) column 2(b), in relation to severely disadvantaged land,

(ii) column 3(b), in relation to disadvantaged land, and

(iii) column 4(b), in relation to any other land; and

(b) “reasonable amount” means the amount of milk which could reasonably be expected to have been produced from one hectare of the tenancy during the relevant period.

(7) In the application of this paragraph–

(a) “dairy cows” means milking cows and calved heifers;

(b) “disadvantaged land” and “severely disadvantaged land” means land which has been determined to be disadvantaged or severely disadvantaged land, as the case may be, in accordance with the definitions of those expressions as they are set out in regulation 2 of the Hill Livestock (Compensatory Allowances) Regulations 1984(1);

(c) references to the “area of a tenancy used for the feeding of dairy cows kept on the tenancy” do not include references to land used for the growing of cereal crops for feeding to dairy cows in the form of loose grain; and

(d) “relevant period” means–

(i) the period in relation to which the base quota was determined, or

(ii) where the base quota was determined in relation to more than one period, the period in relation to which the majority was determined or, if equal amounts were determined in relation to different periods, the later of those periods.

(1)

S.I. 1984/2024.