Scottish Government

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Calf scheme payments start on schedule

26/03/2009

Payments under the 2008 Scottish Beef Calf Scheme (SBCS) will start to appear in bank accounts from March 25, and by March 31, 7126 payments, almost 90 per cent, worth £17.64 million will have been made.

The rates under the 2008 SBCS have been set at £95.04 for each of the first 10 calves, and £47.52 per calf for the remainder. These are some 10 per cent higher than last year, due to the higher euro exchange rate.

Cabinet Secretary for Rural Affairs Richard Lochhead said:

"These payments will deliver benefit and provide important support for our livestock sector I am sure they will be welcomed by Scotland's quality beef producers, following on from the Single Farm Payments in December and the Less Favoured Area Support payments at the start of this year. Together, these payments form part of an economic support framework that is always vital, and never more so than in the current economic climate."

The SBCS was introduced to support both the supply of quality Scottish beef, and the environment. Suckler herds form the backbone of the quality beef production in Scotland and provide environmental benefits in fragile areas. We support these producers by paying premium on all calves which are 75 per cent beef bred and are kept on the producers' Scottish land continuously for 30 days from birth. Animals born on or after 2 December 2004 are eligible.

Claims were received from around 7,900 applicants who claimed around 426,000 animals, of which 424,000 successfully passed the EU-prescribed validation process and are eligible for payment. The €29.8 million available under the 2008 SBCS, converted at 0.7903 is worth £20.488 million net of voluntary and compulsory modulation (8 per cent plus 5 per cent). Payments for the first 10 eligible animals are double the rate for subsequent animals. The rates under the 2008 SBCS have been set at £95.04 for the first 10 cows, and £47.52 for the remainder. Payments are entirely EU funded.

As demonstrated in the table below, rates have risen this year due to the higher Euro exchange rate. However, the increase in the available budget has been limited by the increase in the rate of voluntary modulation, and the payment rate increase has been limited by a small rise in the number of animals claimed.

Euro Claimants

The number of applicants, who elected to be paid in Euros, rose from less than 200 under the 2007 SBCS to almost 900 under the 2008 SBCS. These payments must be processed manually and we anticipate that all eligible payments will be made by the end of April.