Cut in suckler cow quota less than was feared
Cut in suckler cow quota less than was feared
SUCKLER cow producers will have their quota holding cut by 2.75% this year and not by the estimated 4% announced last autumn to comply with Agenda 2000 reforms.
MAFF and the Scottish Executive will be sending producers confirmation of the cut this week. The smaller claw-back has been achieved as fewer units of suckler cow quota were entered for claims last year than expected. In total 95,000 units have been wiped off the UKs quota pool to leave 1.7m units, say MAFF officials.
Farming leaders have welcomed the reduction. Kevin Pearce of the NFU said producers may still be able to appeal against the smaller cutbacks and should study the MAFF documents carefully. However, the smallest producers holding only a few units should be protected from any cuts.
There has already been concern that a reduction in suckler quota would inflate sales and leasing values when trading begins in July. The potential inclusion of heifers on to claims – to a maximum of 20% – has added to speculation.
Last year after a frantic start sales rose to over £200 a unit. But demand tapered off and just before the December deadline lease deals were signed at £5 a unit as producers scrabbled to adhere to MAFFs 90% usage rules. *