24Standard payment right — enterprises that are subject to leasing arrangements

24 Standard payment right — enterprises that are subject to leasing arrangements

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

(b) an entity who is a party to the eligible dairy leasing 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 entity or entities who owned that quota.

(4) The rest of the premium component of the overall enterprise amount is allocated to the entity or 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 (4) will apply to the whole of the premium component of the overall enterprise amount.

(4A) If an amount is to be allocated to more than 1 entity under subsection (4), each of those entities is allocated the proportion of the amount to be allocated in the same proportions as the derived milk revenue shares of the entities.

(5) The non‑premium component of the overall enterprise amount is divided among the entities who are lessees under the eligible dairy leasing arrangement in the same proportions as the milk revenue shares of those entities.

(6) In this section:

derived milk revenue share means:

(a) unless paragraph (aa) or (b) applies:

(i) for a lessor of the land on which the eligible dairy farm enterprise is carried on — the proportion of the milk revenue of the enterprise for the base year represented by the annualised value of the lease at 6.30 pm on 28 September 1999; or

(ii) for a lessee of the land on which the eligible dairy farm enterprise is carried on — the proportion of the milk revenue of the enterprise for the base year represented by the total milk revenue of the enterprise for the base year less the annualised value of the lease at 6.30 pm on 28 September 1999; but

(aa) if the dairy farm enterprise did not come into existence until after the start of the base year and unless paragraph (b) applies: