Voluntary Retirement Scheme – Your questions answered

Here are your frequently asked questions answered on the recently announced Voluntary Retirement Scheme.

Frequently Asked Questions:

Q: When can I apply?

A: The scheme opens for applications in April 2021 and will close on 31 July 2021. An expression of Interest form will be posted to farmers over the coming weeks.

 

Q: When will I know if I am successful?

A: Successful applicants will be notified within one month of the closure of the scheme.

 

Q: How much will I receive under the Voluntary Retirement Scheme?

A: A retiring farmer will receive a monthly payment from GI for a period of five years (2022 – 2026). The amount received will be related to the volume of milk supplied in 2020. The maximum amount that can be received will be capped at €15,000 per year. Payment Rates will be:

• 250,000 litres - €8,000 per year,
• 350,000 litres - €10,000 per year,
• 450,000 litres - €12,000 per year,
• 600,000 litres or more - €15,000 per year.

 

Q: How will I receive these payments?

A: Payments will be made monthly, directly into your bank account.

 

Q: Can I continue farming while also availing of this schemes?

A: Yes you can continue to farm and engage in all other on-farm activities, with the exception of milk production. Your milking parlour must be not be used for the duration of the scheme. You can also lease out some or all of your farm land. A lessee of the farming land may rear animals on the farm. The retiree’s land can be leased out to a dairy farmer for any purpose (e.g. forage production or heifer rearing) but the leasee can not milk cows on the farm or use the retiree’s milking facility.

 

Q: Can I or a member of my family recommence milk production after the 6 years?

A: Yes. From 2027, you can apply to recommence as a milk supplier and if successful in that application you will be deemed a New Entrant at that time.

 

Q: How will the retirement scheme be funded?

A: It will be funded by a contribution of 0.075cpl on all milk supplies from existing suppliers from 2022 – 2026. These contributions will be mandatory and will be part of the GI Milk Purchasing Policy.

 

Q: If I want to retire but can’t exit because of herd restrictions, can I still avail of this scheme?

A: Glanbia Ireland will examine all of these applications on a case-by-case basis.

 

Q: How does the Voluntary Retirement Scheme impact my contractual commitments to Glanbia Ireland? (e.g. Fixed Milk Price Scheme, Autumn Calving Scheme, etc.)

A: GI will facilitate a successful applicant exit any existing contractual commitments.

 

Q: Can I start to supply another milk processor at any stage before 2027?

A: No, you must ensure that no cows are milked on your farm until at least 2027. You may not supply any other processor while you are receiving Retirement Payments from GI. An annual audit will be carried out on behalf of GI to ensure compliance with the Retirement Scheme.

 

Over the coming weeks, Glanbia Ireland will send you details of you supply profile and other information including information on how to apply for the Voluntary Retiement Scheme. Please contact your Farm Development Manager in the event of further questions.

First Published: 26 March 2021