§ Calculation of payment
§ 5.—(1) The amount of the payment to which the tenant of any land is entitled under paragraph 1 above on the termination of his tenancy shall be determined in accordance with the following provisions of this paragraph.
§ (2) The amount of the payment to which the tenant is entitled under paragraph 1 above in respect of allocated quota shall be an amount equal—
- (i) in a case where the allocated quota exceeds the standard quota for the land, to the value of the sum of—
- (ii) the amount of the excess:
- (b) in a case where the allocated quota is equal to the standard quota, to the value of the tenant"s fraction of the allocated quota; and
- (c) in a case where the allocated quota is less than the standard quota, to the value of such proportion of the tenant's fraction of the allocated quota as the allocated quota bears to the standard quota.
§ (3) The amount of the payment the tenant is entitled to under paragraph 1 above in respect of the transferred quota shall be an amount equal—
- (a) in a case where the tenant bore the whole of the cost of the transaction by virtue of which the transferred quota was transferred to him, to the value of the transferred quota; and
- (b) in a case where the tenant bore only part of that cost, to the value of the corresponding part of the transferred quota.
§ "Standard quota"
§ 6.—(1) Subject to the following provisions of this paragraph, the standard quota for any land for the purposes of this Schedule shall be taken to the number of litres of cow's milk which could reasonably be expected to have been produced from the land in a period of 12 months.
§ (2) The number mentioned in sub-paragraph (1) above shall be calculated—
- (a) by reference to the average number of hectares of the land used during the relevant period for the feeding of dairy cows kept on the land; and
- (b) on the assumption that the amount of milk produced from one hectare of land in a period of 12 months is such amount as the Minister may by order prescribe.
§ (3) An order under sub-paragraph (2) above may make different provision for different cases.
§ (4) Where—
- (a) the average number of hectares of the land in question which could reasonably be expected to have been used during the relevant period for the feeding of dairy cows kept on the land (having regard to the number of grazing animals other than dairy cows fed from the land during that period) is substantially greater or less than the average number referred to in sub-paragraph (2)(a) above; or
- (b) the amount of milk which could reasonably be expected to have been produced from one hectare of the land in question during the relevant period is substantially greater or less than the amount prescribed under sub-paragraph (2) (b) above, then that number or, as the case may he, amount shall be adjusted accordingly.
§ (5) For the purposes of sub-paragraph (4) above a number or amount shall be taken to be substantially greater or less than another only if it exceeds, or, as the case may be, falls short of that other by an amount equal to or greater than 20 per cent. of that other.
§ (6) The power to make an order under this paragraph shall be exercisable by statutory instrument and any statutory instrument containing such an order shall be subject to annulment in pursuance of a resolution of either House of Parliament.
§ (7) In this paragraph references to the feeding of animals are to grazing and feeding from harvested crops (other than loose grain) and references to dairy cows are to cows kept for milk production.
§ "Tenant' s fraction"
§ 7.—(1) For the purposes of this Schedule "the tenant's fraction" means the fraction of which—
- (a) the numerator is the annual rental value at the end of the relevant period of the tenant's dairy improvements and fixed equipment; and
- (b) the denominator is the sum of that value and such part of the rent payable by the tenant in respect of the relevant period as is attributable to the land used in that period in connection with the production of cow's milk.
§ (2) For the purposes of sub-paragraph (1)(a) above the rental value of the tenant's dairy improvements and fixed equipment shall be taken to be the amount which would fall to be disregarded under paragraph 2(1) of Schedule 2 to the Agricultural Holdings Act 1986 on a reference made in respect of the land in question under section 12 of that Act (arbitration 1140 of rent), so far as that amount is attributable to tenant's improvements or tenant's fixed equipment which are relevant to the production of cow's milk.
§ (3) Where—
- (a) the relevant period is less than or greater than 12 months or
- (b) rent was only payable by the tenant in respect cif part of the relevant period,
§ (4) For the purposes of sub-paragraph (2) above "tenant's improvements" and "tenant's fixed equipment" have the same meanings as in paragraph 2 of Schedule 2 to the 1986 Act, except that—
- (a) any allowance made or benefit given by the landlord after the end of the relevant period in consideration of the execution of improvements wholly or partly at the expense of the tenant shall be disregarded for the purposes of sub-paragraph (2)(a) of that paragraph;
- (b) any compensation received by the tenant after the end of the relevant period in respect of any improvement or fixed equipment shall be disregarded for the purposes of sub-paragraph (3) of that paragraph; and
- (c) where paragraph 2 above applies in respect of any land, improvements or equipment which would be regarded as tenant's improvements or equipment on the termination of the former tenant's tenancy (if he were entitled to a payment under this Schedule in respect of that land) shall be regarded as the new tenant's improvements or equipment.
§ "Relevant period"
§ 8. In this Schedule "the relevant period" means—
- (a) the period in relation to which the allocated quota was determined; or
- (b) where it was determined in relation to more than one period, the period in relation to which the majority was determined or, if equal amounts were determined in relation to different periods, the later of those periods.
§ Valuation of milk quota
§ 9. The value of milk quota to be taken into account for the purposes of paragraph 5 above is the value of the milk quota at the time of the termination of the tenancy in question and in determining that value at that time there shall be taken into account such evidence as is avaialble, including evidence as to the sums being paid for freehold and leasehold interests in land—
- (a) in cases where milk quota is registered in relation to the land; and
- (b) in cases where no milk quota is so registered.