Under EU Regulations 3886/92 and 3887/92, as amended, farmers holding suckler cow quotas and ewe premium quotas are required to use a minimum percentage of their quotas every year.
The European Commission has recently decided that, with effect for 1997 and 1998, farmers holding suckler cow quotas of more than seven are required to use at least 90 per cent of the quota every year, otherwise the part not used will be forfeited and returned to the national reserve. Farmers holding quotas of seven or less are required to use at least 90 per cent of the quota in any one of two consecutive years, otherwise the part not used in the second year will be forfeited and returned to the national reserve.
Farmers holding ewe premium quotas are required to use at least 70 per cent of their quotas every year, otherwise the part not used will be forfeited and returned to the national reserve.
Farmers who are unable to use the required percentage of quota may lease out the unused part. The leasing out of quota is regarded as using the quota. However, from the year of first leasing, the farmer must use the required percentage of quota himself in two consecutive years in any five year period.