Premium cut headache looms for beef farmers
Premium cut headache looms for beef farmers
BEEF farmers may struggle to make their headage payments add up this year, warns farm business consultant Andersons.
All beef special premium payments are being cut back due to the UK exceeding its national ceiling on claims, says the companys Richard King. MAFF has reduced the number of animals claimed by 1.69%.
"MAFF have not announced this as far as I am aware. We only found out because we were checking a clients payments," he says.
Precise final payments will vary, because the revised figure on animals claimed is truncated to the nearest decimal place. This could mean neighbours receive different amounts (see table), says Mr King.
Many farmers are also wondering how much they are actually owed, and when they will be getting it, he adds. This is because 2000 beef headage payments include various agrimoney compensation amounts to offset the effects of the strengthening £.
For example, first advances of BSP, suckler cow premium and slaughter premium (paid in November 2000) included the first tranche of compensation paid to offset falling headage payments.
Final payments for BSP, SCP and SP, as well as total extensification premium, are being paid between April and June, though not all at the same time. Beef farmers claiming SCP and BSP have also received further top-up payments in April, worth a few £ a head, to cover the effect of the strong £ on support prices. They will receive a little more when the second tranche of headage compensation is paid in November. *
BSP – scaleback effect
Farmer Farmer
A B
Claimed steers
under BSP 30 35
Claimed steers after
scaleback 29.493 34.4085
Truncated fig (£) 29.4 34.4
Gross payment
a head (£) 79.68 79.68
Tot paid (£) 2,342.59 2,740.99
Effective payment
a head (£) 78.08 78.31