California Department of Food and Agriculture

Dairy Home > Background Information > Pool Quota FAQ Brochure

How do I qualify for quota as a new producer?

Obtain a market milk permit from the appropriate health authority.
Have a market milk contract and be shipping to a pool handler prior to making application.
Have one year of continuous commercial production with the State of California prior to making application and continue to produce until receiving an allocation of new quota.
At least 50% of the interest in the dairy operation is owned by individuals directly engaged in management and operation of the dairy.
Operate a production facility that is completely separate and apart from any other production facility for a minimum of one year prior to making application and until new quota has been allocated.
No individual may apply for new quota on more than one production facility.
Operate a production facility under the same ownership percentages as stated in the application for a minimum of one year prior to making application and new quota issued has been maintained for five years.

How many applicants are on the new entry list?

Currently there are approximately 101 producer applicants on the new entry list for quota.

When is quota available for allocation?

The last new growth allocation period was 1990-1991.
Currently, the only quota available for allocation is that quota which has reverted back to the Pool.

As a new producer when may I sell my quota?

Quota may be sold five years after the initial allocation.
Exceptions:
- Transfer by testamentary device or intestate succession.
- Transfer to a direct lineal descendent.

If I have sold quota, when will I be eligible to purchase more quota?

Quota may be bought after 24 months.
Exceptions:
- Quota was originally acquired through a family transfer.
- A transfer by testamentary device or intestate succession.

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Is there a minimum of quota that I may transfer or sell?

You may not transfer less than 50 pounds of quota fat, unless the seller has less than 50 pounds of quota fat.
On transfers less than 100% of base and quota, if the base is greater than the quota, there will be a loss of production base. Like amounts of base and quota are transferred to the buyer.

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When must my transfer application be received?

Transfer applications (Form 210-008) must be received on or postmarked on or before the 15^th of the month prior to the effective date of transfer, which is always the 1^st of the month. When the 15^th falls on a Saturday, Sunday, or other legal holiday, the time for filing is extended to the next work day.

What are some reasons that would require a change in my quota registration?

Addition or loss of a family member.
Formation or dissolution of a partnership.
Change in the partners or in the percentage of ownership of any partner in a partnership.
Formation or dissolution of a corporation.
Change in the stockholders or in the percentages of ownership of any stockholder in a corporation.
Formation of a trust.
Creation of an estate upon the death of an owner.

I have a hardship condition and I am ineligible to sell or purchase quota.

You may appeal to the Producer Review Board. Please contact the Milk Pooling Branch for assistance.