Payments to dairy farmers on schedule

The Dairy Adjustment Authority (DAA) is well on the way to having the first Dairy Structural Adjustment Program (DSAP) payments to dairy producers by the end of October this year.

Chairman of the DAA, Mr Patrick Musgrave, said the Authority was delighted with the response from farmers, having received over 14,800 applications, representing the interests of over 30,000 entities – both individuals and companies.

"The Authority can now proceed with fulfilling its primary task of ensuring that all of Australia’s eligible dairy farmers who have applied, receive their share of the $1.63 billion available through the Dairy Structural Adjustment Program", added Mr Musgrave. "The processing of applications has begun so that payments to farmers can begin on schedule".

The processing of the applications is a complex and time consuming task. Most of the complexity stems from the variety of business relationships in existence, for example owner operator applications are relatively easy to process but more complex lessee, lessor and sharefarmer arrangements are taking longer to finalise.

These complexities also mean that it is necessary for Authority staff to contact some farmers for additional information or clarification of their individual circumstances. The Authority estimates some 30 percent of applications will require extra attention.

Other important aspects of the processing concerns the accuracy and confidentiality of the information provided by farmers. To ensure accuracy, the Authority has a special audit team checking and re-checking each application.

"Our staff are taking extreme care to ensure that each individual receives exactly the amount they are due and that each applicant is treated fairly and equitably", Mr Musgrave said.

Prior to payments commencing, all dairy producers will first receive a ‘Notice of Decision’ which explains the amount of their entitlement and how this was calculated. If dairy farmers disagree with the decision regarding their entitlement, they have 28 days after having received the notice, in which to request that the DAA reviews its decision.

Notices of Decision will be sent out in batches as they are processed, with some applications requiring more time than others for a decision to be made. Where the DAA has requested additional information, the issuing of notices will occur once the information has been received and re-processed.

"Because we are processing in batches, receipt of notices will be staggered", said Mr Musgrave. "People may receive their notices at different times – just because your neighbour has been notified and you haven’t is no cause for concern."

Dairy farmers who have completed a Farm Business Assessment and received a Notice of Decision can expect to receive their first payment from the end of October 2000. Each person will need to nominate a bank account number held by them so that payments can be automatically credited to their account.

"Applicants are reminded that payments cannot be made until the DAA has received their signed Farm Business Assessment declaration form. The last date the DAA can accept the form is 19 February 2001, however, I would like to stress that the sooner the form is received, the sooner payments can be made", concluded Mr Musgrave.