Agrimonetary Compensation

A revaluation of the Green Pound can result in a drop in income for Dairy Farmers and where this arises a payment known as Agrimonetary Compensation is made to compensate the farmer for the loss. The payment is usually made through the network of Co-ops.

As no supply of goods or services gives rise to the payment it should be noted that an unregistered farmer is not entitled to receive the normal flat rate addition of 3.3% when the compensation is paid. Consequently no repayment of VAT will be due to the Co-op as a result of paying the compensation to such farmers.