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Early payment of Autumn livestock subsidies

30/10/1998

The Scottish Office confirmed today that advance payments to Scottish beef and sheep farmers will be issued shortly.

This news was evidence that the Government was committed to providing farmers with additional support, said Scottish Agriculture Minister, Lord Sewel.

He said:

"This is good news for Scotland's hard-pressed beef and sheep farmers. I promised that these payments would be issued as soon as possible, and I am very pleased that this is the case. The payments are some two to three weeks ahead of last year's. Not only that, the Beef Special and Suckler Cow Premium rates are being paid at 80% this time as opposed to 60% thanks to efforts which the Government made in Brussels to increase the rate in view of farmers' cash flow problems."

BACKGROUND

1. Scottish farmers received almost £500m in direct subsidy payments in 1997. These are regular year-on-year payments but the Government has provided almost £50m in additional cash this year. The Government is also committed to making regular arable and livestock subsidy payments at the earliest permissible dates.

2. The Sheep Annual Premium Scheme, which is fully funded by the EU, is intended to compensate producers for the extent to which the average price for sheepmeat over the marketing year falls below the basic price set by EU Agriculture Ministers. Payment is made on eligible ewes retained for 100 days for which producers hold quota. The 1998 second advance rate was set at £4.98.

3. The Suckler Cow and Beef Special Premium Schemes are provided for under the EU Beef regime. Usually paid at 60%, the Beef Management Committee decided in Brussels last month to increase the advance payment level under both schemes to 80%, in view of the difficulties currently being experienced by beef producers. The Beef Special Premium Scheme advance payment under the 1998 Scheme has accordingly been fixed at £67.45 for steers and £83.78 for bulls. Under the 1998 Suckler Cow Premium an advance rate of £89.93 has been set.

News Release: 2235/98
30 October, 1998

Page updated: Monday, July 30, 2007