NFU Scotland has welcomed the announcement today (Monday, 1 August) from the Scottish Government that an interim replacement for the Scottish Beef Calf Scheme (SBCS) will be in place for the start of 2012.

This welcome piece of forward thinking allows for the SBCS replacement scheme to come into force, irrespective of the timing of the outcome from forthcoming discussions around reform of the CAP regime.

The benefits to the beef sector generated by the scheme are broadly preserved in the new version, although rates have been altered to the benefit of those with smaller herds such as crofters, small farmers and new entrants.

Speaking from the annual agricultural show at Turriff, Aberdeenshire, NFU Scotland’s President Nigel Miller said:

“Without taking this action, there was the risk that delays in securing a CAP reform agreement could have left us without any direct support for our beef industry.  This interim announcement guarantees that the principles of the scheme will be preserved from 2012 until such times as a new CAP package is in place.

“That removes any uncertainty that beef producers may have had on the immediate future and crucially buys some time for Scotland and stakeholders to continue to develop their thinking on how best to support extensive livestock under any new CAP regime.  A solution is important as more than 422,000 beef calves born in Scotland last year qualified for the SBCS payment, underpinning Scotland's important beef industry.

“The pot of money in the scheme remains the same at just under 30 million euros.  However, the decision to increasingly target that money towards the most vulnerable producers by increasing the rates paid on the first 10 calves will make a huge difference to crofters, small farmers and new entrants alike.  For them, the economics of keeping cows, particularly in more remote areas, is dependent on ongoing support.

“For larger beef farmers, where returns from the SBCS are a smaller part of their overall turnover, it is important that any dip in support is more than compensated for by more meaningful returns being generated from the marketplace for their cattle.  These producers are the engine room of Scotland’s world-renowned beef industry and it is important that consumers, retailers and processors give them suitable encouragement to continue to grow their beef enterprises.” 

Notes to Editors

• The Scottish Beef Calf Scheme (SBCS) was introduced in 2005. CAP Health Check reforms in 2008 allow the SBCS to continue until 2012. For support to continue beyond that, any new scheme has to be compatible with measures set out under Article 68 of the Health Check Regulation (EC) 73/2009. This means it must be targeted at specific disadvantages, and in the beef sector it is hill producers who continually struggle to make a profit.
• The total SBCS fund is 29.8 million euros.  Payments per calf are subject to change depending on the total number of eligible animals claimed, exchange rates and modulation.
• Approximately 422,500 beef calves were claimed in 2010 - 16,500 more than in 2009.   In 2010, the payment rate after modulation for the first 10 calves was £89.77 and £44.88 for every calf after that.  In 2009, the equivalent rates were £98.94 and £49.47 respectively.

Ends

Contact Bob Carruth on 0131 472 4006