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Scotland Rural Development Programme 2007-2013

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OPTION 35: INTRODUCTION OR RETENTION OF CATTLE OF SCOTTISH NATIVE OR TRADITIONAL BREED(S) - BACKGROUND CALCULATIONS

BACKGROUND CALCULATIONS:

NVZ Adj

GM - Hill Suckler Cows

Non- NVZ

NVZ

av. Hill Suckler Cows (Spring calving)

£0.00

Gross Margin average (A):

£0.00

per head

GM - 6.67 Hill breeding Ewes (Store lamb)

Blackface

£7.62

North Country Cheviot

£6.72

South Country Cheviot

£11.89

Gross Margin per ewe:

£8.74

£8.67

per head

Gross Margin per 6.67 ewes (B):

£58.32

£57.85

Income forgone (Gross margin B less Gross Margin A)

£58.32

£57.85

per cow introduced

Change in interest on Tenant's Capital (Cattle & Sheep LFA Farm):

£0.00

Value of time lost to off-holding work when smallholder introduces cattle:

40

hrs/yr @

£7.82

per hr

£312.80

per cow introduced

using SAC Standard Labour requirements,

1 suckler cow + 1 calf (6-12 mths) = 32 hrs/yr

Cropping (hay etc.) for 1 cow = 38 hrs/yr

less 7 breeding ewes + 1 ewe hogg = 30 hrs/yr.

Income foregone (loss of output):

£371.12

£370.65

per cow introduced

Additional costs:

Annual charge to service capital and interest required to:

Purchase 1 cow @ £974.74 @ 6.3% over 7 yr herd life

£176.53

Annual charge for GP/Cattle building & dungstead (net of grants) to accommodate up to 5 cows (and calves) with storage space:

£1,128

Annual charge for GP/Cattle building & dungstead (net of grants) to accommodate up to 10 cows (and calves) with storage space:

£2,301

Accommodate up to 5 cows (and calves) with space for storage of up to 25 tonnes hay:

125.00

sq metre building @

£173.46

per sq metre =

£21,683

Dungstead:

£6,375

Cost (net of grant*):

£14,029

* CCAGS - 50%

Annual charge @ 6.3% over 25 yrs

£80.40

per £1,000 borrowed

£1,128

Accommodate up to 10 cows (and calves) with space for storage of up to 45 tonnes hay:

250.00

sq metre building @

£173.46

per sq metre =

£43,365

Dungstead (100 cu m):

£10,250

Cost (net of grant*):

£28,615

* CCAGS - 50%(max £25000)

Annual charge @ 6.3% over 25 yrs

£80.40

per £1,000 borrowed

£2,301

SAC Handbook Sept 2005 building cost £165 36.4% of which is the steel supply cost
Steel index from MEPS shows increase of 14.09% in cost of steel from Sept 05 to June 06 = £173.46

Published results on the Galloway Cattle Society web site for their Castle Douglas Spring Show and Sale for 16/17 Feb 06 is the only published cost for native breed in-calf heifers at present and gives an average for 30 sold of £974.74.
In support of this, 66 Luing cows with calves at foot sold for an average of £1028.52 and 10 Luing bulling heifers sold to average £1073.10 in Castle Douglas on 10 June 06.

OPTION 35i: INTRODUCTION OF CATTLE OF SCOTTISH NATIVE OR TRADITIONAL BREED(S)

Prescription

Calculation

Introduction of Cattle of Scottish Native or Traditional Breed(s)

Nos. of cows introduced

Inbye hectarage

Income foregone

Income foregone NVZ

Annual charges: Purchase of Cattle

Total (£)

Total

Total NVZ

10

20

£3,711.18

£3,706.45

£1,765.25

£5,476.43

£273.82

273.5854

9

18

£3,340.06

£3,335.81

£1,588.73

£4,928.79

£273.82

273.5854

8

16

£2,968.94

£2,965.16

£1,412.20

£4,381.15

£273.82

273.5854

7

14

£2,597.83

£2,594.52

£1,235.68

£3,833.50

£273.82

273.5854

6

12

£2,226.71

£2,223.87

£1,059.15

£3,285.86

£273.82

273.5854

5

10

£1,855.59

£1,853.23

£882.63

£2,738.22

£273.82

273.5854

4

8

£1,484.47

£1,482.58

£706.10

£2,190.57

£273.82

273.5854

3

6

£1,113.35

£1,111.94

£529.58

£1,642.93

£273.82

273.5854

2

4

£742.24

£741.29

£353.05

£1,095.29

£273.82

273.5854

Average cost per hectare:

£273.82

£273.59

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