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1. Introduction
1.1 Background to the Project
1. The Scottish Beef Calf Scheme ( SBCS) began on 1st January 2005 using provisions in Article 69 of Council Regulation 1782/2003. Article 69 enables Member States to retain up to 10% of the component of national ceilings corresponding to each sector. The funds retained can be used to support 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.
2. The objectives of the SBCS are to deliver environmental benefits and to retain quality beef production. The environmental benefits that derive from cattle grazing compared to non-cattle grazing include: more diverse plant compositions and structure; the creation of favoured conditions for ground nesting birds and micro-habitats for insects; and ideal ground conditions for native tree regeneration. Support for delivering environmental benefits was designed as a response to predictions that beef production in more remote areas would decline as a consequence of decoupling of farm payments from production following the 2003 CAP reforms.
3. Support under the SBCS is available to farmers for the production of beef bred calves (i.e. calves that are 75 per cent beef bred). Farm businesses receive around £70 per calf on the first 10 beef bred calves for environment protection and maintenance reasons. Further payments of £35 per calf are available on all other beef bred calves on the business in order to encourage quality beef production. The higher rate on the first 10 calves is intended to benefit producers in more remote areas in Scotland, who on average have smaller herds and where the environment objective is targeted. Support for the SBCS is linked to production which makes it different from the rest of Pillar I support, which is decoupled.
1.2 Purpose of Study
4. The SBCS has now been operating for a while and this study therefore aims to evaluate how effective the scheme has been to date in addressing intended economic and environmental objectives. The detailed objectives of the study are as follows:-
Objective 1: To evaluate the impacts of the SBCS on viability of beef enterprises receiving support under the SBCS
Objective 2: To evaluate the impact of the SBCS on the beef cow herd and beef production
Objective 3: To evaluate the environmental impacts of the Scheme
Objective 4: To assess the impacts of ending the SBCS
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