This item was published during the term of a previous administration that ended in April 2007
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Beef national envelope
29/07/2004
From next year a beef national envelope will be set at
10 per cent and payments will be directed to beef bred
calves produced from the suckler herd.
Minister for Environment and Rural Development Ross
Finnie also announced that supporting the environment and
supply of quality beef will be key objectives.
Under reforms to the Common Agricultural Policy (CAP),
subsidy will no longer be associated with production. The
measures agreed in June last year do, however, allow for
top-slicing of subsidy payments, at Member State and
regional discretion, to protect sectors considered to be
vulnerable to distortions.
Mr Finnie said:
"Our clear goal is to see a more market-focused
profitable Scottish farming industry that recognises its
key role in sustaining our environment. The reforms of the
CAP agreed last year provide a genuine opportunity to
realise these ambitions.
"We must also recognise that, in the short to medium
term the financial impact during this transition towards a
single farm payment may result in fluctuations of supply in
the beef sector in particular.
"We recognise that there is no consensus among the
various interests on this issue. We have a responsibility,
however, to mitigate any adverse impact on our very
important beef industry and gives the sector the
opportunity to adjust to the new decoupled world. A beef
envelope will meet our objectives of sustaining quality
beef production, support remote and fragile areas, and
protect environments dependent on cattle grazing.
"There will be a payment of around £70 per beef bred
calf for the first 10 calves in each business, to encourage
the suckler sector itself, and more particularly in the
remoter areas for environmental reasons. This measure will
increase the share of money received by the more remote
areas.
"In addition, there will be payments on all other beef
bred calves from suckler cows. A flat rate payment of
around £35 per calf will be paid as an incentive to quality
production.
"We have developed a simple scheme for payment which is
based upon the passport system, which is of course an on
going requirement for traceability purposes. There will be
no forward retention periods or stocking density
limits.
"I am entirely convinced that our proposals will avoid
any unnecessary bureaucracy and will address the very real
environmental concerns whilst helping to secure the supply
of quality beef for the benefit of the sector as a
whole."
EU legislation (Council Regulation (EC) No 1782/2003)
permits retention of up to 10 per cent of the subsidy
contribution from any sector and to make an additional
payment to farmers in the sector concerned by the
retention. The legislation states "The additional payment
shall be granted for specific types of farming which are
important for the protection or enhancement of the
environment or for improving the quality and marketing of
agricultural products …".
The rates of payment quoted - £70 per beef bred calf on
the first 10 per business and £35 on all other beef bred
calves - are approximate. Actual rates will depend upon
the applications made in 2005 and will be announced
later.
Suckler production - the production of weaned calves or
of store animals for fattening by others - is the
cornerstone of quality beef production in Scotland. It is
also the basis for maintaining and enhancing the
environment in some of our most remote areas. Scottish
Executive figures suggest that producers of weaned calves
or store animals account for almost two thirds of the beef
calves that are fattened for beef.
Further information is available from
http://www.scotland.gov.uk/capreform