Withdrawal of SBP applications allowed

By John Shirley

Now that a cut in the 2002 Special Beef Premium is a practical certainty for herdowners who applied on more than 50 animals, some may wish to withdraw animals. This withdrawal facility is most applicable for those who applied on marginally over 50 cattle. It can also apply where the herdowner exceeded the overall ceiling of 1.9 lu per hectare.

The department allows herdowners to withdraw some or all animals entered for the SBP provided:

• the herd has not been inspected or notified of an inspection.

• the herdowner has not been notified of an error.

• payment has not been made.

In practice this means applications made in November/December 2002. The application forms for withdrawal are available from the Special Beef Premium unit in Portlaoise Tel 0502 74400. And possibly at local offices if the demand is high.

A 5% national quota overshoot will lead to a 10 to 12% cut on applications over 50.

In the scenario of a 10% cut on over 50 applications, the department's plan is that applications of 51 to 55 head will receive the same payment as the person who applies on 50. An applicant with 56 head will be paid on 56 less 10%.

• 56 - 5.6 head = 50.4 payments.

• 57 will attract 51.3 payments

• 58 will attract 52.2 payments and so on.

Animals that lose special beef premium also lose the accompanying extensification.

Other factors

As the Fischler proposals for de-coupling stand, the Reference Quota will be based on animals "paid on" rather than animals "applied on".

There is no guarantee that 2003 applications will not exceed quota as well.

Withdrawing 2002 application to re-apply in 2003 could have implications for 2003 stocking density as the first census date will likely fall in March.

Extensification 2002

Friday 31 January 2003 is the closing date for returning the second (CEN 2) form for 2002 extensification.

The CEN 2 form covers the last two census dates that were 15 September and 10 November 2002. Farmers received the CEN 2 form with the notification of the fourth census date. If they have mislaid the form, a new CEN 2 form can be obtained from local DVO offices.

More recently, farmers received a CMMS estimation of animals of 1.0 and 0.6 livestock units on the farm for the fifth census date. With this, they also received a discrepancy form to correct where the herd profile is incorrect.

This is the last year farmers will have to fill out census forms as the department is moving to using the database to calculate stocking density. This moves also means that farmers will not receive a EXPR.1 form on which they previously had to indicate if they wanted to apply for the simplified or census system.

There is no simplified system this year and farmers wishing to qualify for extensification will have to tick a box on their Area Aid form.

Slaughtering stock straight from B&B accommodation

Cattle being finished in rented accommodation do not have to be moved back into the owner's herd on the CMMS before going to the factory, according to the department.

The clarification has come after some confusion arose over whether farmers had to move cattle back into their own herd number before slaughter.

However, once the owner and the keeper correctly recorded the movement of the stock into the feedlot there should be no problem selling the cattle straight into the factory.

The movement from the owner's herd to the keepers must have been done by completing a CMMS 3 form. (Movement other than sale).

Trading for suckler quota slowing down

Despite all the uncertainty of the Fischler proposal's, suckler cow quota continues to be bought but at much lower prices than earlier in the year.

Quota agents around the country have said that trading has slowed significantly but deals have been done for between €480 to €550 per unit in the last week. There is a strong interest in leasing which is said to be scarce at present. Prices for leasing are between €190 to €210 per unit for both disadvantaged and non-disadvantaged quota.

Payments this week

October special beef premiums accounted for over 90% of the €20m paid out by the department last week. In all 12,879 special beef premium payments totalling €18,415m paid out brought the percentage paid up to 97%. Other payments include ewe premium; nine payments totalling €0.012m (97% paid), suckler cow; 298 payments totalling €0.990m (96% paid) and area based compensatory allowance; 292 payments totalling €0.652m (97%paid).