UK government sets up dairy response fund for English dairy farmers

By Jim Cornall contact

- Last updated on GMT

Payments are capped at £10,000 per registered business.
Payments are capped at £10,000 per registered business.

Related tags: Defra, coronavirus, COVID-19, Dairy

Since the start of the coronavirus outbreak, the dairy industry has faced challenges of excess milk, falling prices, and reduced demand from the hospitality sector.

In the UK, Defra has set up a fund to help those dairy farmers most in need in England overcome the impact of the coronavirus (COVID-19) outbreak.

The new funding is aimed to help support dairy farmers who have seen decreased demand for their products as bars, restaurants and cafes have had to close.

The fund will be administered by the Rural Payments Agency (RPA).

Farmers can apply if they supply cows’ milk to a wholesale purchaser and have had a reduction in the average price paid for milk of 25% or more in April 2020 compared to that paid in February 2020.

Payments will not be made for May losses alone.

Losses will be calculated by comparing the average base price (excluding adjustments) in February and April 2020.

The government said all Dairy Response Fund payments are discretionary and there is no automatic entitlement to any payment.

Payments will be rounded up to the nearest £250 ($312) up to the cap of £10,000 ($12,480) for each registered business.

Application forms are available on the government’s website​, and there is a deadline of Friday, August 14, 2020 for applications to be received.

Related topics: Markets, COVID-19, Pricing Pressures

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