Payments - which option? (From Gazette & Herald)

Payments - which option?

THE debate still continues on whether subsidies under the mid-term review of CAP should be based on historic payments or a regional basis when calculating the single-form payment.

I won't go into detailing how each method of calculating subsidy is worked out, as this was explained previously in this space.

Last week saw the NFU come off the fence in support of calculating future subsidies by the historic method, stating that in its opinion this was the fairest option currently available.

The CLA, however, has stated that, with the current information available, a conclusion cannot be reached either way.

There is also talk of 'hybrid options' DEFRA has confirmed it is possible to pay different regional rates to grassland and arable farms, while retaining an element of historic entitlement for the more enterprising livestock farmer. This would appear to be the fairest option across the board, however implementing/administrating this system would no doubt be very complicated.

The worrying fact is that technically ministers have until August to make their minds up. I only hope a decision can be reached well before that date, in order that all involved with the industry are able to prepare for the change over.

I am also of the opinion that DEFRA must have a sensible and easily-worked contingency plan for handling hardship cases.

Nothing to get excited about the above mini headline. But this is the term that has been given to land on which there is no producer with entitlement to claim subsidy, ie a farm let during the relevant years 2000-2002 on which in 2002 the tenant has given up his tenancy, taking any entitlement to claim with him.

Recent research claims there will be demand for this land, and therefore a value. It is predicted that many mixed farmers who take a number of short-term lettings will find they need additional land to validate their claim. If a farmer is unable to do this, the entitlement will be lost to the national reserve after three years.

I read with hope that the Rural Payments Agency has started processing and paying suckler cow premium three months earlier than last year in order to try to alleviate the problems in previous years of late payments.

Just a reminder that all landowners in the area to the east, south and west of York have until December 2 to check the draft maps.

If anybody has any queries regarding checking plans, please contact David Lindley (01653) 692151.

Grain prices have continued to firm in the past fortnight as the EU's shortage of grain has forced consumers to chase the market. Rumours of China being in the market to buy US wheat has added fuel to the fire and, unless you are a net buyer of grain, it is good to see pricesat the £100-a-tonne mark forMay/June 2004 a price not seen for at least seven years.

The shortage of grainwithin the EU could easily be solved by imports of US maize but, because US maize cannot be guaranteed as being GM-free, it cannot be imported into any EU country except for Spain and Portugal which have long-standing agreements with the USA.

At current prices, farmers worldwide will be keen to plant wheat, and it may well be that we are looking at a one year wonder in terms of the prices currently available. As ever, the weather will be the determining factor, and it was good to see many dry areas in our region receive a good drop of rain during the past week.

This Friday sees the second special suckler sale, and I am informed that there are entries of almost 150 head of cattle from local suckler herds. There will also be a good entry of store lambs.

Sale times: store sheep 11am, store cattle noon.

Anybody with any queries please contact Paul Morse (01653) 692151.

Tuesday's market saw forward 110 cattle including 41 bulls, 42 clean and 27 cows; 397 sheep including 100 ewes.

Heavy steers to 115p/kilo from B Gray, Fryup (ave 100.04p/kilo).

Light heifers to 129p from G I Marwood, Harome (98.9p), heavy heifers to 133p from G I Marwood (99.3p).

Light bulls to 110p from J H Almond, Bempton (107.9), medium bulls to 104p from J H Almond (97.3p), heavy bulls to 115p from M Welford, Weaverthorpe (96.2p), black & white bulls to 86p from F Fairburn, Rievaulx (81.2p).

Standard lambs to 105.7p from M Hammond, Ebberston (105.2p), medium lambs to 104.6p from E W Snowden & Son, Helmsley (102.4p), heavy lambs to 105.3p from D Earnshaw, Salton (101.2p), overweight lambs to 100p from G Gamble, Kirbymoorside (98.4p).

Ewes to £55 from W James, Ryton (£34.02).

Updated: 10:22 Wednesday, November 05, 2003