What is the “out-of-business” rule CWT has adopted regarding the herd retirement?
A number of dairy farmers have expressed concern about bidders taken out in previous herd retirements going right back in business. Therefore, the CWT Committee approved a rule change that requires successful herd retirement bidders and the premises on which they produce milk to stay out of producing and marketing milk for 12 months following completion of the CWT farm audit. CWT will pay successful bidders in two installments; 90% when CWT receives verification that all dry and milking cows have gone to slaughter and, at the end of the 12-month waiting period, the remaining 10% plus interest if neither the producer nor the dairy premises (whether owned by the producer or leased) have been involved in the production and marketing of milk during that twelve month period.
