Welsh making the most of quota

DAIRY FARMERS in Wales are beginning to make the best use of quota to maximise the value of the single farm payment, says quota broker Ian Potter.

Farmers visiting his stand at the Royal Welsh Show were starting to focus on the value of quota in Wales, Scotland and Ireland, said Mr Potter.

But many were still confused about the deadline of Mar 31, 2005.

“Every producer must sit down this year and examine what is right for their business,” he said.

“There is a real opportunity here for those who want to seize it, to maximise the value of the purely historic-based single farm payment.”

Farmers in Wales and Scotland who hold clean, unused quota on Mar 31 next year would be able to secure between 16p/litre and 18p/litre on their SFP before modulation, said Mr Potter.

But for producers in England, the historic element would only be worth 7.5p/litre, which would be phased out over the next eight years as the regional element increases.

George Paton, of Wilts-based broker Webb Paton, said there was growing demand for quota from Welsh producers.

“English producers who have surplus quota to lease out can effectively get the value of their SFP up front, instead of spread over eight years, by leasing at the current price of about 8p/litre,” he added.