Scalebacks cause concern
SIGNIFICANT SCALEBACKS to the beef special premium are set to put a substantial dent in this year”s final balancing cheque, which is not now expected to arrive until May.
In common with their UK counterparts, Irish producers have over-shot their 1.077m head national ceiling for BSP claims by a considerable margin.
Although final figures have yet to be released, current estimates show that about 29% more bulls and steers were claimed on in 2004 as producers sought to maximise their last production-linked subsidies.
That level of overshoot is likely to be trimmed as the department of agriculture weeds out ineligible claims. But the actual scaleback will still be substantial, due to the system of exempting small producers.
“In Ireland, producers claiming on less than 25 head are excluded from any scaleback,” explains Ballindeasig owner/manager Ed Jagoe.
“This means the bulk of the penalty will be concentrated on the larger commercial drystock farmers.”
The worst case scenario suggests affected producers could be hit by a 40% penalty – eliminating the BSP balancing payment altogether. At Ballindeasig, which last year claimed on 50 steers and 140 young bulls, such a loss of subsidy would come to about
“That”s big money in anybody”s book,” says Mr Jagoe. “
The problem really arises from when minister Joe Walsh accepted a 200,000 head reduction in the country”s national ceiling in 1996. At that time we were regularly undershooting on BSP claims. But now we have overshot, that decision has come back to bite us.”
Mr Jagoe is also irked by the late arrival of the application form for the 2005 single farm payment.
This year”s claim will determine the level of entitlements to SFP for several years to come. With just five weeks to go before the May 16 closing date, and with stiff penalties for late applications, Mr Jagoe is worried that time is running out.
As farmers weekly went to press this week, there was also no sign of the long-promised cross-compliance booklet. But at least copies have been posted on the department”s website and, at a first glance, the conditions do not appear too onerous.
For example, it calls for the prevention of soil erosion “through appropriate measures”, such as avoiding severe poaching and not leaving seed-beds exposed over winter. Measures must also be taken “to prevent establishment of invasive species” and “to minimise the spread of noxious weeds”.
“It does not seem to go any further than the good farm practice we apply at Ballindeasig anyway,” says Mr Jagoe.
Livestock farmers are also urged to avoid under-grazing on permanent pasture – not that there”s been much danger of that this spring. With unseasonably cold weather and lack of sunshine, grass growth during March has been extremely slow.
“As a result, we”ve had to feed more meals through the diet feeder and given the cows extra maize at milking time,” says Mr Jagoe.
On a couple of particularly wet days the cows were limited to just a couple of hours out at grass, and their diet was supplemented with grass silage. As a result, milk protein levels fell temporarily from 3.52% to 3.37%, with a resultant drop in milk value.
But the additional feeding of meal and maize helped maintain milk yields and butterfat. Currently the 55 spring calvers and 20-strong autumn herd are averaging 32 litres a day of 3.52% protein, 4.10% butterfat milk.
Despite the fact that Ireland as whole is expected to have overshot its milk quota by 36m litres, or 0.7%, year-end production at Ballindeasig is believed to have come in at just under quota.
