Focus on efficiency Scottish sheep farmers told

Scottish sheep farmers have been given a blunt message to spend more time improving efficiency than worrying about CAP reform.

Boosting output and hitting market specification would have a far greater impact on enterprise profitability than minor changes in subsidy, SRUC policy consultant, Douglas Bell, told an National Sheep Association Scotland conference at Stirling.

“Market returns account for the biggest part of your income and you should be concentrating on that rather than spending time on something over which you have very little influence,” said Mr Bell.

Latest QMS costings show that sheep are more profitable than cattle on hill and upland farms in Scotland and the top third of producers are achieving a profit before taking Single Farm Payment into account.

“Too many farmers are sitting on their hands, depending on subsidy payments,” said Mr Bell. “The aim should be to improve technical efficiency and produce more kg of lamb for every kg of ewe put to the tup and get more finished lambs into the premium price range.”

He suggested any increase in coupled payments should go to beef producers through the Scottish Beef Calf Scheme. The Scottish Government is considering a proposal to make a payment of 200 euros on the first 40 beef calves born in a herd, compared with only 10 at present, and to pay 7 euros on all remaining calves.

Mr Bell said his comments did not mean that sheep producers should not take advantage of EU subsidies. It would be important not to “foul up” by having penalties imposed for failing to comply with cross-compliance and greening requirements.

The Scottish Government’s deputy director for agriculture and rural development, David Barnes, said there was still “wriggle room” to persuade the European Commission to accept stocking rate as a measure of active farming under the new CAP.

The commission has been insisting that the application of stocking rate would be seen as a coupled payment and would not be acceptable under World Trade Organisation rules. However, Jeremy Moody, secretary of the Central Association of Agricultural Valuers, said it would be an “uphill road” to secure approval for stocking rate.

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