Bags of wool marked Property of British Wool Marketing Board© FLPA/REX/Shutterstock

British Wool has introduced a scheme to provide cash flow support for new entrants to the sheep farming industry.

The initiative will provide eligible producers with upfront payments worth 100% of their annual clip value for the first two years of the scheme.

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After year two, producers will transition towards standard payments, each year receiving 25% less of their prior year’s clip values upfront until year six, when they are in line with the company’s standard payment scheme.

Successful applicants will also receive a priority wool intake and grading service through British Wool’s nationwide depot network.

“Investing in the future of the industry is an essential part of our strategy, and we want to play a key role in encouraging young farmers into the industry,” said Joe Farren, British Wool’s chief executive.

“Any start-up business requires support to be successful, so increased up-front payments during the first two years will help ease the pressure on cash flow.”

Mr Farren said that through this initiative he hoped to appeal to young farmers to market their wool through the company and thus safeguard the long-term future of British Wool.

Eligible producers should have kept sheep for fewer than five years and must not have previously been registered with British Wool.  

Full details of the scheme and an application form are available on the British Wool website.

Application forms can also be requested by calling the Producer Services team on 01274 688666 or emailing newentrants@britishwool.org.uk.

How will the new payment scheme work?

Year 1 Advance payment will be set to 100% of the prior year’s clip value.

Year 2 Advance payment will be set to 100% of the prior year’s clip value plus / minus any balance from the previous year

Year 3 Advance payment will be set to 75% of the prior year’s clip value plus / minus any balance from the previous year

Year 4 Advance payment will be set to 50% of the prior year’s clip value plus / minus any balance from the previous year

Year 5 onwards Advance payment will be set to 25% of the prior year’s clip value plus / minus any balance from the previous year

Year 6 onwards Payments will be in line with all other British Wool registered producers