22Standard payment right — enterprises that are subject to both sharefarming and leasing arrangements

22 Standard payment right — enterprises that are subject to both sharefarming and leasing arrangements

(a) a dairy farm enterprise that is subject to both:

(i) an eligible dairy sharefarming arrangement; and

(ii) an eligible dairy leasing arrangement; and

(b) an entity who is a party to either of those arrangements.

(1A) First, so much of the premium component of the overall enterprise amount as relates to market milk delivered by the enterprise in the base year against a particular quota is allocated to the entities who owned that quota.

(2) Then, the face value of the payment right of the lessor of the land on which the enterprise is predominantly carried on is worked out in accordance with section 24 as if:

(a) the enterprise were not subject to the sharefarming arrangement; and

(b) references in section 24 to the overall enterprise amount were references to the overall enterprise amount less the amounts allocated under subsection (1A) of this section.

(3) However, for subsection (2), any essential capital contribution that was provided for the enterprise by an entity who is a party to the sharefarming arrangement but not the leasing arrangement is taken to have been provided by the lessee.

(4) The face value of the payment rights of the entities who are parties to the sharefarming arrangement is worked out next by allocating:

(a) the premium component of the overall enterprise amount as follows:

(i) allocate to each party to the sharefarming arrangement the amount of the premium component of the overall enterprise amount calculated as if subsections 23 (3), (3B), (3D) and (3E) applied and as if the reference in subsection 23 (3E) to the owner of the enterprise were a reference to a lessee of the land on which the enterprise is predominantly carried on;

(ii) allocate so much of the premium component as is not allocated under subparagraph (i) (if any) to the lessor of the land on which the enterprise is predominantly carried on; and

(b) the non‑premium component of the overall enterprise amount among all the entities who are parties to the eligible dairy sharefarming arrangement in the same proportions as the shares of the milk revenue of the enterprise to which each entity was entitled at 6.30 pm on 28 September 1999.

(5) The references in subsection (4) to the overall enterprise amount are references to the overall enterprise amount less the amounts allocated under subsections (1A) and (2).