# The Milk (Cessation of Production) (England and Wales) Scheme 1987, Section 5: Basis of claims and rates of compensation under this Scheme

Extent: E+W

(1) A person may claim compensation under this Scheme in respect of either—
(a) loss or profits in the 7 years immediately following the date on which he ceases to produce milk for sale or for processing into milk products for sale, by reference to the amount of milk quota he surrenders; or
(b) the value of the amount of the milk quota he surrenders.
(2) Payments made by the appropriate Minister under this Scheme shall be calculated—
(a) in a case falling within sub-paragraph (1)(a), at the rate of 3.927 pence per litre on a quantity equal to the amount of milk quota surrendered for each of the 7 years immediately following the date on which the applicant ceases to produce milk for sale or for processing into milk products for sale, in relation to the amount of quota surrendered; and
(b) in a case falling within sub-paragraph (1)(b), at the rate of 27.489 pence per litre on that quantity, payable in 7 equal annual instalments.

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Source: https://www.legislation.gov.uk/uksi/1987/908/section/5 (the official version)
Page: https://openlegislation.uk/milk-cessation-of-production-england-and-wales-scheme-1987/section-5
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.