Go ahead for 96 trading
SHEEP producers in England have been given the go ahead to start trading their 1996 quotas.
Although it will take time for the market to get going, early indications suggest prices will be lower than last year.
"Most of the people on our register are looking to sell," said Charles Robinson of Bruton Knowles National Quota Exchange. "The rules say you can only lease out for three years in a row. So either they must now use their quotas and go back into sheep production or they must sell it."
As such, he is expecting a price of about £18 to £20/unit gross, although leasing should be more static at about £8 or £9/unit.
Producers wishing to transfer quota may do so only up to the point at which they submit a claim for sheep annual premium to MAFF. However, producers who have applied for quota from the national reserve for 1994, or who intend to apply in 1995 or 1996, may not sell or lease out their 1996 allocation.
Similar arrangements are expected soon in Wales, Scotland and Northern Ireland. *