6Identifying the essential capital contribution

6 Identifying the essential capital contribution

(1) If a dairy farm enterprise is subject to an eligible dairy sharefarming arrangement or an eligible dairy leasing arrangement, the entity that provides the essential capital contribution for the enterprise can be identified in accordance with this section.

(2) The following entities are taken to have provided the essential capital contribution required to achieve access to the market milk premium for a dairy farm enterprise that is subject to an eligible dairy sharefarming arrangement or an eligible dairy leasing arrangement:

(a) if all the market milk delivered by the dairy farm enterprise in the base year was delivered against a quota — the entity or entities that owned the quota;

(b) if paragraph (a) does not apply but at least some market milk delivered by the dairy farm enterprise in the base year was delivered against a quota — each of the following:

(i) the entity or entities that owned the quota;

(ii) the entity or entities that owned the land on which the enterprise is predominantly carried on;

(iii) the entity or entities that owned at least 25% of the number of livestock used in, or for purposes incidental to, the carrying on of the enterprise;

(c) if neither paragraph (a) nor paragraph (b) applies — each of the following:

(i) the entity or entities that owned the land on which the enterprise is predominantly carried on;

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

(4) For subparagraphs (2) (b) (iii) and (2) (c) (ii), 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.