4Meaning of eligible dairy sharefarming arrangement

4 Meaning of eligible dairy sharefarming arrangement

(1) An eligible dairy sharefarming arrangement is an arrangement between 2 or more entities:

(a) under which each entity is entitled to:

(i) a fixed percentage share of the milk revenue of a dairy farm enterprise; or

(ii) a fixed percentage share of the milk revenue of a dairy farm enterprise in relation to the sale of each type or amount of milk produced by the enterprise; and

(b) where at least 1 of those entities has no proprietary interest in:

(i) the land on which a milking shed used by the enterprise is situated; and

(ii) quota under which the enterprise delivers market milk.

(2) A dairy farm enterprise is subject to an eligible dairy sharefarming arrangement if the milk revenue of the enterprise is shared under the arrangement.

(3) An entity is a party to an eligible dairy sharefarming arrangement if the entity is entitled to a share of the enterprise’s milk revenue under the arrangement.