Effective December 1, 2020
The current credit transfer policy for farms under 40 kg/day was applied on February 1, 2014 after a consultation with producers. The Board had considered input that encouraged the growth of smaller farms and changed the then 30 kg/day limit to 40 kg/day. This policy was specifically designed to support Graduated Entrant Program (GEP) participants, who could start production at 24.7 kg/day, and utilize credit transfers to provide a better cash-flow position and in-turn grow their farms. The Boards goal was to start farms, support their success and lower barriers to entry.
Since the application of this policy, the Board consulted and developed the New Entrant Program (NEP) establishing a policy with the potential to start farming at 31 kg/day (initial allocation + matching quota), recognizing the production market has changed since the development of the GEP.
In order to continue supporting newer and smaller farms with policies to encourage long-term growth, the Milk Board has adjusted the credit transfer policy to the following;
Current Policy (February 1, 2014 – November 30, 2020)
Farms equal to or less than 40 kg/day are bound by a maximum of 2,500 credits transferred IN only, or a maximum of 10% credit transfer limit over a rolling 12-month basis IN or OUT combined.
New Policy effective December 1, 2020
Farms equal to or less than 50 kg/day are bound by a maximum of 2,500 credits transferred IN only, or a maximum of 10% credit transfer limit over a rolling 12-month basis IN or OUT combined.
The Board plans to review the entire credit transfer policy at a later date and evaluate whether further changes are required.
Please contact Zahra Abdalla-Shamji with any questions regarding this policy.