5Meaning of eligible dairy leasing arrangement \[see Note 2\]

5 Meaning of eligible dairy leasing arrangement [see Note 2]

(1) A dairy farm enterprise is subject to an eligible dairy leasing arrangement:

(a) if quota was required for the delivery of market milk by the enterprise in the base year, and the owner of quota used by the enterprise leases some or all of the quota used by the enterprise to 1 or more other entities for the purpose of delivering milk produced by the enterprise; or

(b) if quota was not required for the delivery of market milk by the enterprise in the base year, and the owner of land on which a milking shed used by the enterprise is situated leases the land to 1 or more other entities for the purpose of producing milk.

(2) An entity is a party to an eligible dairy leasing arrangement if the entity is the lessor or lessee of quota or land mentioned in this section.

(3) If a dairy farm enterprise is subject to an eligible dairy leasing arrangement under paragraph (1) (a) and a lessee mentioned in that paragraph sub‑leases some or all of the quota mentioned in that paragraph to another entity (the sub‑lessee) for the purpose of producing milk:

(a) the sub‑lessee is taken, for subsection (2), to be the lessee of the quota subject to the sub‑lease; and

(b) the lessee is taken, for subsection (2), not to be the lessee of the quota subject to the sub‑lease.

(4) If an dairy farm enterprise is subject to an eligible dairy leasing arrangement under paragraph (1) (b) and a lessee mentioned in that paragraph sub‑leases some or all of the land mentioned in that paragraph to another entity (the sub‑lessee) for the purpose of producing milk:

(a) the sub‑lessee is taken, for subsection (2), to be the lessee of the land subject to the sub‑lease; and

(b) the lessee is taken, for subsection (2), not to be the lessee of the land subject to the sub‑lease.