Quota trading back 50%

By Peter Young

There was a major reduction in quota trading this year with overall transactions down by 50% according to department figures released days before the deadline for application of suckler cow premiums on Friday 27 June 2003.

Agents trading in suckler quota report strong demand but a lack of supply in suckler quota to buy and lease mainly due to farmer uncertain about how the outcome of the Fischler proposals will affect their future income. The department said that there will be no extension to the deadline for suckler cow applications. Forms will be accepted in the local DVO after 27 June 2003 but will attract a 1% penalty for every working day thereafter up until a cut off date of 23 July 2003.

Overall, applications into Castlebar fell from 17,200 in 2002 to just 8,900 days before the deadline this year. The units transferred were down from 9,200 in 2002 to just 3,750 this year. This figure includes sales and within family transfers and shows farmers reluctance to buy suckler quota. The number of units leased was down from 8,000 to just 5,121 quota units this year. All quota transaction held up by the strike have now been processed. Confirmations are expected to be posted in the next few days.

Jean Gorry, TE Potterton said that she has large orders for quota but none to sell. Prices moved up in the last few days with disadvantaged quota making between €450 to €480 and non-disadvantaged quota making up to €500. Quota for leasing continues to make between €190 and €200

There will be at least one more year under the current regime with further years not yet ruled out. There is also a possibility of suckler quota having some value under a partial decoupling scenario.