Pig restructuring – the details

By Peter Crichton

AGRICULTURE minister Nick Brown announced the second phase of the pig industry restructuring scheme this week.

Called the Ongoers Scheme, it provides an interest rate rebate on loans linked to an agreed business plan.

Applications for aid must include an acceptable business plan and will be dealt with on a first come, first served basis.

Successful applicants will receive aid in the form of a reduction of five percentage points on the interest charged over two years from the date of the successful application.

This would lead to a reduction of a lending rate charge at, for example, 8.5%, of which the producer would only have to pay 3.5%, in net terms.

Larger producers employing more than 10 people will also have to agree to a reduction of 16% in their sow capacity compared with June 1998 figures.

According to MAFF, approximately 95% of producers are classified as Small Agricultural Units and will not have to incorporate this reduction.

The closing date for applications for the first year is 02 August, 2002 and for the second year, 01 August, 2003.

MAFF has emphasised that this aid will be available for two years only.

Phase one, the Outgoers Scheme, was launched on 04 December.

It offers payments to farmers who are prepared to put their breeding pig units into “set-aside” for 10 years and decommission their pig breeding facilities.

The pig industry restructuring scheme, which provides finance for the Ongoers and Outgoers elements, forms part of the Governments Action Plan for Farming.

The plan is supported by 200 million and aims to chart a way forward and to help farmers improve their businesses during the current farming crisis.

MAFF has reported strong interest in both the Outgoers Scheme, with over 2000 application forms being sent out, and the Ongoers Scheme, where to date well over 100 enquiries have been received.

• For more informationcontact MAFF on 020 7270 8457 or at pirs@mpep.maff.gsi.gov.uk
• Peter Crichton is a Suffolk-based pig farmer offering independent valuation and consultancy services to the UK pig industry