Super Levy FAQ
When do I have to pay superlevy?
For a farmer to be liable to superlevy, Ireland must be over quota, his co-op must be over quota and he/she must be over quota. If any one of these three conditions does not apply, no superlevy fine arises.
How much is the superlevy fine?
The superlevy fine is €27.83 per 100 kilos of milk – or 28.66c/litre. The fine applies to all milk quota supplied in excess of owned + leased + other temporary or permanent allocations + fleximilk quota.
Hence, a producer with a total quota of 250,000 litres who supplies 20% more milk, i.e. 300,000 litres, could be liable for a penalty of 50,000 litres x 28.66c per litre = €14,330.
How do I avoid a superlevy fine?
Plan early and aim to match production and quota as closely as possible.
Keep in touch with your co-op regularly and frequently: if your co-op is not over quota, even if the country and you are, you will not be liable to a fine.
If you are already exceeding your quota, get quality production advice on feeding, milking and other methods to reduce supplies without damaging your cows.
In extreme situations reduce your herd temporarily, by leasing or selling cows.
Can my co-op collect superlevy early?
Yes, your co-op can do so, once you have filled your entire quota.
However, the money collected must be put into an interest earning account, and used only to pay the superlevy fine or be refunded, interest and all, back to the farmer(s) concerned if there is no superlevy.
IFA has asked co-ops to deal case by case with farmers in cash flow difficulties where superlevy is collected early.
How does my butterfat reference affect my quota?
Your quota is a volume quota, but it is adjusted downward if your butterfat production exceeds your butterfat reference, and vice-versa.
How is the butterfat adjustment calculated?
For every 0.01% of butterfat produced in excess of a farmer’s reference, his quota volume will be reduced by 0.09%. For every 0.01% of butterfat below the reference, hi quota volume will be increased by 0.18%.
Your co-op routinely provides you with butterfat adjusted milk delivery data on your monthly milk statement.