How is CWTs payment for a herd retirement calculated and when does the producer get paid?
CWT will pay successful bidders an amount equal to the price bid by the Producer multiplied by producer’s verified twelve-month milk volume submitted with their bid in two installments: 90% when CWT receives the required verification that all milking an dry cows have gone to slaughter; the remaining 10% plus interest when CWT verifies that neither the producer nor the dairy facility, whether owned or leased, has not been engaged in the commercial production and marketing of milk during the 12 months following the CWT farm audit. The annual volume is based on verified production during the period specified on Herd Retirement Bid Form. If the producer elects to participate in the Bred Heifer Option, the producer will also receive an additional payment equal to the price per bred heifer specified on the Bred Heifer Option Form times the number of bred heifers verified by the CWT farm auditor.
