Giveaway prices for suckler quota

By FWi staff

SUCKLER cow quota is being leased at giveaway prices as the market enters its final fortnights trading ahead of the 6 December deadline.

Brokers are reporting lease deals being signed as low as £5 a unit as lessees look to keep individual quota holdings alive for next year.

Then, with the inclusion of breeding heifers in claims, many expect trading values to increase markedly.

According to Grant MacPherson of United Auctions Dingwall Mart, suckler producers able to invest in the remaining few days of trading can expect to recoup the vast majority of subsidy payment.

This is expected to be about £112 a unit before extensification and hill livestock compensatory allowance bonuses.

“Theres no gamble left in it,” says Mr MacPherson. Lease deals of £5 a unit are being taken readily and the sale trade has dried up completely.

Hereford-based Richard Hyde says lessors are in a marvellous position.

“Probably the best for some time, where they can literally name their price for leasing.

“The market is still looking for £30 a unit, but quota holders are looking at offers – I wouldnt like to say how far theyll go,” adds Mr Hyde.

But however tempting it may be for producers to put in another claim, those who have already submitted one in the past year will not be eligible to do so again.