The BC Milk Marketing Board (BCMMB) submitted a policy on non-family succession to the BC Farm Industry Review Board (BC FIRB) on May 10, 2019 following two years of consultation. The BC FIRB provided the following decision for Non-Family Succession transfers on August 7, 2019;
39. BCFIRB amends its January 19, 2006 and February 2, 2018 directions to allow for assessment free transfers of quota to non-family members off the Milk Board Quota Exchange on the basis of the following conditions being met:
a. The quota amount being transferred is and will remain attached to the farm in question;
b. The transfer is for demonstrated succession planning purposes; and
c. The Milk Board criteria reflects the quota recipients demonstrated strong commitment to the farm.
40. Going forward, the Milk Board’s Public Accountability and Reporting Project (PARP) annual report is to include data showing the amount of quota being transferred off the Quota Exchange, broken down by family transfers and non-family transfers.
This policy was approved by the BC Milk Marketing Board on October 17, 2019.
The policy allows producers to have the opportunity to conduct a non-family transfer without assessments within specific policy parameters and document submission. This policy is limited to the succession of the farm for those individuals who do not have exempt transfer persons to take over their farm in the future. Any transfer of quota off the farm will be required to be conducted through the quota exchange, farm sale or whole farm transfer policies so assessments are recognized as part of the transaction.
The key requirements for this policy were provided during the consultative stage of the Quota Tools Assessment Review (QTAR); A person employed by a producer (transferee) could qualify to receive a transfer of quota under the following criteria;
- The transferee must be a permanent resident status in the Province of British Columbia;
- The transferee must be a senior executive or managerial capacity with respect to the Producer’s Dairy Farm for not less than 5 consecutive years as evidenced by T4 statements;
- The transferee must have derived the majority of his or her income from employment as a senior executive or manager with respect to the Producer’s Dairy Farm for the past 5 years;
- The transferee cannot currently own quota
- All transfers under non-family succession must be pre-approved by the Milk Board like whole farm transfers and farm sales.
The Board will provide a detailed explanation of this policy and its application during the fall producer meetings.
If you have any questions regarding this notice, please contact Zahra Abdalla-Shamji at email@example.com.