23Standard payment right — enterprises that are subject to sharefarming arrangements

23 Standard payment right — enterprises that are subject to sharefarming arrangements

(a) a dairy farm enterprise that is subject to an eligible dairy sharefarming arrangement, but is not subject to an eligible dairy leasing arrangement; and

(b) an entity who is a party to the eligible dairy sharefarming arrangement.

(2) The face value of each entity’s standard payment right is the total of the amounts allocated to the entity under the following provisions of this section.

(3) 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.

(3A) If an amount is to be allocated to more than 1 entity under subsection (3), each of those entities is allocated the proportion of the amount to be allocated that is equal to its share of the quota.

(3B) The rest of the premium component of the overall enterprise amount is allocated to the entities who are taken to have provided the essential capital contribution required to achieve access to the market milk premium for a dairy farm enterprise because it or they:

(a) owned the land on which the enterprise is predominantly carried on; or

(b) owned at least 25% of the number of livestock used in, or for purposes incidental to, the carrying on of the enterprise.

Note In cases where no market milk was delivered by a dairy farming enterprise in the base year against a quota, subsection (3B) will apply to the whole of the premium component of the overall enterprise amount.

(3C) For subparagraph (3B) (b), the proportion of livestock owned by a partner in a partnership is taken to be the same as the proportion of the livestock owned by the partnership.

(3D) If the premium component of the overall enterprise amount is to be allocated to 1 or more sharefarmers under subsection (3B), each of those sharefarmers is allocated the proportion of the amount to be allocated that is equal to the proportion of the milk revenue of the enterprise to which the sharefarmer was entitled at 6.30 pm on 28 September 1999.

(3E) The remainder of the premium component of the overall enterprise amount after the application of subsections (3B) and (3D) is allocated to the owner of the enterprise, so long as the owner is a person who is taken to have provided the essential capital contribution required to achieve access to the market milk premium for the dairy farm enterprise.

(4) The non‑premium component of the overall enterprise amount is allocated to 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.