By FWi staff
SUCKLER cow quota for 2000 is still trading at higher prices than last year.
Traditionally, quota has tailed off in value as the trading period comes to an end, but no seasonal dip has yet been seen this year.
The final date for applications is 6 December, but Hereford-based agent Thompsons reports no slowing of demand for purchase and lease of GB lowland suckler cow quota.
Quota to buy is currently costing 240-250/unit, a sharp rise from the October level of 220/unit.
The leasing market is also showing a bullish trend, rising from 60/unit in September to 80 in November, with some prices as high as 90/unit, says Thompsons.
The firms David Thompson says demand is outstripping supply.
One reason for this is the change in rules, allowing farmers to claim premium on 20% of their heifers. This has meant many are looking for more quota units.
And dairy farmers moving out of dairying may have further bolstered demand, he says.
But its value of 80-90/unit to lease is making some farmers question its validity.
“One or two clients have decided against leasing it in, because they feel its not worth paying that sort of money, compared with what the premium is worth.”
Thompsons expects demand to remain strong through to the end of trading and recommends producers with unused quota contact an agent before the deadline, or risk having some of their quota confiscated.