Press Release - Pack Report sets the road ahead but the devil will be in the detail

Pack Report sets the road ahead but the devil will be in the detail.

The announcement today of a new model to tailor CAP funding to the needs of the farming community were welcome today by the National Beef Association.  

Hamish McBean, chairman of the Scottish council, said the principles of the model echoed what the NBA has said in previous consultation responses, and was pleased to see their suggested use of labour units to top up area payments in the LFA areas and the continued use of a beef suckler calf scheme.

The NBA supports the principle of targeting funding to the two main areas identified in Scotland, which are the LFA and the non-LFA areas, using an area based payment per hectare with additional top ups, but is concerned about how beef cattle businesses, especially in the non-LFA areas, will react to the decrease in the amount of direct SFPS, they receive.  

“Since decoupled in 2005, the beef cattle sector has not seen the much needed increase in prime cattle prices it was expecting from the market place, to allow businesses to thrive, with the majority of beef businesses literally surviving on the SFPS to keep them afloat at present” said Mr. McBean.

“The proposed model, which will affect beef business from 2014 onwards, suggests those farming in more productive areas of the country, especially the non-LFA areas, will receive an area based payment with the main income being derived from the market place”.  

“The area payment received will depend on the overall budget set by Europe for Pillar One funding, but beef producers in these areas can expect a significant drop in the amount of direct funding they receive and their survival will depend on whether the market place is prepared to recognise this and work with the industry to pay enough for finished cattle to cover the income gap”.

The Pack Report is also suggesting the movement of a percentage of LFA funding from Pillar Two to Pillar One direct funding to achieve a three way support scheme for those farming in LFA areas.   This is a novel approach which could prove beneficial, but will be very reliant on the acceptance in Europe and in Westminster, that Pillar One direct support, and its budget, must continue to support the primary objective of food production within an environmentally sustainable production system. 

If the Pillar One budget is dramatically reduced more beef farmers could find themselves without enough support to keep their businesses profitable while waiting for the market place to re-position their beef pricing strategies. 

The NBA welcomes the themed approach of the model scheme, which is targeted and simple, but the devil will be in the detail of the payment rates and the conditions and what the final policy and budget will look like after all the discussions in Europe.

For more information contact: Hamish McBean, NBA Scotland chairman.
Telephone: 01309 651206.  Mobile: 07729 357 880.
Email: [email protected]
  
Or: Kim Haywood, NBA director: Tel: 0131 336 1754, Mobile: 07967 698936
[email protected]