May 20th 2000

Beet buy-out scheme floated

By Paul Mooney

A buy-out scheme under which farmers growing sugar beet on leased contracts would buy these contracts from the dormant contract holder has been drawn up by the Carlow board of IFA's sugar beet section.

A clawback mechanism would be used to create a substantial reserve which would be then distributed among small growers and new entrants.

The sugar beet section has promised to put forward proposals to solve the problem of sub-letting ahead of next year's growing season.

The mechanism drawn up includes a price of £30 per tonne. The active grower would pay for the full tonnage leased but 25 per cent of it would be clawed back into the central reserve. This would be distributed ten per cent to new entrants and 15 per cent to small growers. The Journal understands that contracts would be allocated without charge from the reserve.

It is likely that the Sugar Company would have to be involved in operating such a scheme. The whole question of legality would be have to be closely examined as sub-letting of beet contracts is illegal.

There are claims that at least 25 per cent of the country's sugar beet - up to half a million tonnes - is grown on sub-let contracts. If so any buy-out scheme at the above price could involve up to £15 million going to dormant contract holders and this would be controversial.