Hello everyone,
I have posted some responses from local dairyfarmers when we had three
meetings in three different places last week to discuss the situation.
You might find them interesting. There were owners and sharefarmers at each
meeting.
As I understand the situation the ADFF is developing the final document
after each part of Victoria makes its response to the UDV and each other
State makes its submission to the ADFF based on its farmer members ideas.
January 1 2000 should be the date for eligibility for package. Dairy
license holders only.
Administration by a Victorian organisation at lowest cost. (possibly
tendered) Electronic transfer to bank accounts.
Application process with statutory declaration before payment made.
Sharefarmers and owners need to develop and implement their own enterprise
bargaining agreements. UDV not to get involved except with developing
suggested guidelines for sharing.
Appeals process restricted to one year – on payment only, (not on
sharefarmer/leasee appeals). Strict clear guidelines for appeals.
(If farmers are supplied with detail of the amount of payment by January 1,
2000, then appeals should be only until June 30 2000).
Tax implications of this package needs to be well defined, at an early date,
but tax-free money would be the best outcome.
Payment to be calculated on total litres. Either on a flat % of total
litres, or differential payment on market and manufacture litres.
Period of time to calculate payments –
1998 –99 season (current season) most favoured.
Average of 1997 – 98 season, or definitely no more than 3 years average.
How payment made –
Lump sum or option of three equal annual payments (more admin)
Tax implications thoroughly communicated.
Other considerations –
Calculate payments to sharefarmers, leasees and other staff on a pro rata
basis calculated on their investment in the industry. Eg. Cows @ $??, plant
@ $??, experience @ $ ??, on a ratio basis.
Develop guidelines for basis of payment to sharefarmers etc, but as
suggestions only, nobody except the sharefarmer and the owner can enforce
the agreement.
Communicate well before the payment due, via banks, and any kind of
communication available – “buyer beware” type messages.
Farmers to split payments into different tax years could use I.E.D’s. Then
the “scheme” could be paid out all in one year and done with.
Bank fees need to be considered, and ways to minimise to be explored and
communicated. Credit and debit tax, early payout of loan principal etc.
Situation where owner owns license and farm leased. Owner does not therefore
own production. Production in leasees name. Need a ruling on this.
One member at meeting in this situation.
Absolutely no payment of mediation/legal service for disputes between owners
sharefarmers, staff on distribution of package. They find and finance their
own if needed.
This package provides the opportunity for the industry to change shape
overnight. Perhaps owners can finance sharefarmers or young people into farm
purchase with no/low interest finance and get a tax benefit??
Stress that this package is for FUTURE LOSS, based on past performance to
calculate the amount.
Need to acknowledge that the chosen career of young people is dairying
(apprentices etc) and include them in guidelines for owners to consider.
Overall, we want a scheme that is easy to administer, easy to understand,
and fair and equitable to all sectors.
We do not want the factories to become the vehicle for payment to farmers.
Jennifer McMillan
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