Scotland Rural Development Programme 2007-2013: Rural Development Regulation (EC) No 1698-2005

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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.

Page updated: Wednesday, May 05, 2010