ICOS five-point scheme is aimed at income stability

Income

COS, the umbrella body for the co-operative movement, including the major dairy processing co-operatives and national livestock marts, has launched a new proposal aimed at combatting extreme income volatility in the dairy sector

ICOS president Martin Keane called on “all political parties and general election candidates to seriously consider the ICOS proposal which is straightforward, practical and workable.”

Known as the ICOS 5-5-5 Income Stability Tool, the measure includes three components: five-year income averaging: The scheme should be open to farmers participating in the five-year income averaging scheme already in place; 5 per cent of annual milk receipts: The scheme will permit a farmer to voluntarily defer up to 5 per cent of their milk receipts in any one year; five-year draw down period: The scheme will allow the deferred funds to be drawn down at any time within a maximum of five years, and subject to income tax at the time of draw down.