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Section 13 The landlord’s amountF1I1

England and Wales

(1)

The landlord’s amount shall be an amount 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;

(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 holding, 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 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.

(2)

In sub-paragraph (1) “the landlord’s fraction” means the fraction of which—

(a)

the numerator is an amount equal to the capital value of the rent which the immediate landlord can reasonably be expected to lose as a consequence of the surrender of the quota; and

(b)

the denominator is the sum of that amount and an amount equal to the capital value of the loss of earnings which can reasonably be expected to be suffered by the tenant as a consequence of the surrender of the quota.

(3)

For the purposes of sub-paragraph (2)—

(a)

“rent” includes any other periodic payment;

(b)

the capital value of the rent shall be assessed in accordance with Schedule 2 to the Agricultural Holdings Act 1986f1 (arbitration of rent) on the assumption that the rent will not change until the next rent review; and the said Schedule 2 shall be construed accordingly;

(c)

in assessing loss of earnings, the loss of the annual value of tenant’s dairy improvements and fixed equipment shall be included; and the capital value thus calculated shall be reduced by the sale value of any dairy items made redundant but which the tenant can sell.

(4)

For the purposes of sub-paragraph (1) and subject to the provisions of sub-paragraph (6), the standard quota for any land shall be calculated by multiplying the relevant number of hectares by the prescribed quota per hectare, and in this sub-paragraph and sub-paragraph (4)—

(a)

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

(b)

“the prescribed quota per hectare” means such number of litres as the Minister has prescribed for the purposes of sub-paragraph 6(1)(b) of Schedule 1 to the Agriculture Act 1986f2 (calculation of standard quota) by the Milk Quota (Calculation of Standard Quota) Order 1986f3.

(5)

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, sub-paragraph (4) shall not apply, and the standard quota shall be calculated by multiplying the relevant number of hectares by such proportion of the prescribed quota per hectare as the reasonable amount bears to the prescribed average yield per hectare, and for the purposes of this sub-paragraph—

(a)

the amount of milk to be taken as the average yield per hectare shall be that taken for the purposes of sub-paragraph 6(2) of Schedule 1 to the Agriculture Act 1986 (calculation of standard quota in exceptional cases) in accordance with the Milk Quota (Calculation of Standard Quota) Order 1986;

(b)

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

(6)

In the application of this paragraph—

(a)

“dairy cows” means cows kept for milk production (other than uncalved heifers);

(b)

“disadvantaged land” and “severely disadvantaged land” means land which has been determined to be disadvantaged land 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 1984f4;

(c)

“land used for the feeding of dairy cows kept on the land” does not include land used for the growing of cereal crops for feeding to dairy cows in the form of loose grain; and

(d)

“the relevant period” means—

(i)

the period by reference to which the base quota was determined; or

(ii)

where the base quota was determined by reference to more than one period, the period by reference to which the majority was determined or, if equal amounts were determined by reference to different periods, the later of those periods.

Annotations

Textual amendments

F1

Scheme revoked (E.) (6.4.2007) by The Milk (Cessation of Production) (Revocation) Scheme 2007 (S.I. 2007/476), paras. 1, 2(1)(b)

Commencement

I1

Para. 13 in force at 10.6.1987, see para. 1

Footnotes

f1

1986 c. 5.

f2

1986 c. 49.

f3

S.I. 1986/1530; amended by S.I. 1987/626.

f4

S.I. 1984/2024.