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End of Project Report A survey of 190 dairy farms in a co-operative area in the south of Ireland served as the main source of data in the present study. Eight farms representative of the different types of dairy farms were chosen and their data were analysed using the Finpack financial analysis program. These eight case studies were analysed using alternative funding strategies to determine the effect of alternative funding strategies for farm buildings on net farm income. The data obtained were extrapolated to the national dairy herd. There are some 14,050 dairy farms with quotas of less than 15,000 gallons and 40% of these were classified as non viable. The corresponding figures for other quota categories are as follows: 8,150 farms with quotas of 15,000-25,000 gallons with 40% non-viable; 7780 farms with quotas of 25,000-40,000 gallons with 20% nonviable; and 8,535 farms with quotas >40,000 gallons with 10% nonviable. Non-viable dairy farms were those with low income, low contact with advisory services, low household dependence on farm income, a poor attitude to development and expansion and generally inadequate farm facilities. Non-viable dairy farms should consider changing from dairying into a suckler and/or beef enterprise and should be assisted to do so by the advisory service. They should be considered for a suckler quota unit for each 987 gallons of milk they had been producing. They should consider using income assistants, e.g., REPS, Early Retirement Scheme and/or unemployment benefits as relevant. Training schemes should be targeted at young farmers and their spouses who are not working so that they have a better chance of offfarm employment, when relevant. Potentially viable and viable dairy farms should be assisted on a sliding scale depending on their quota size, as follows: Grant aid for upgrading milking facilities, grant aid for milking and milk cooling equipment, interest subsidies on interest payment on money borrowed for agricultural development, the smallest milk quota farms should be considered the priority for milk quota reallocation, quota purchase should be subsidised if possible, quota leasing should be subsidised for the smallest quota category ( |
