War of words over Single Payment (From Gazette & Herald)

War of words over Single Payment

THERE has been a mini war of words between those who perceive the Single Payment to be additional income to be set against fixed costs; and those who believe it to be an opportunity to set aside a capital sum to help survive in the new regime.

Leading the income brigade is Sir Don Curry, who provocatively questioned at a Dairy Conference last week, "how can anyone possibly recommend that £3 billion be put in the bank?"

But the head of the capital troops is the outspoken Robert Forster, of the National Beef Association, who has repeatedly advised that farmers should put their Single Payment into a separate pot and use it to prepare their farming systems for the day when there are no support systems at all.

It is tempting to allow the SP to mask the profitability or otherwise of our farming enterprises and the day may come in seven years time when the financial support becomes so diluted or diverted that it becomes meaningless.

The thrust of Robert's argument is that we should separate out the SP in our farm budgets and see if the various enterprises will then stand on their own feet.

The SP fund should be spent on capital purchases or projects which reduce our costs, and bring the whole operation onto a stand alone profit basis.

I suppose you receive your money and make your choice but the whole thing may be irrelevant as DEFRA have now confirmed that they are not likely to make any payment at all in 2005; and the earliest possible target date for sending the first cheques will be February next year.

We better start planning our cash flow straight away.

Milk quota price slips

Not that it will worry them, but the supermarkets appear to have achieved another own goal by putting so much pressure on milk producers that thousands have been forced out of business.

The net result is that in a country that can grow grass better than anywhere else in the world, we now have under production in milk and we are not likely to meet our quota ceiling.

In the dying months of the quota year, the price is slipping and now hovers around 10p -11p for a sale of clean quota and 6p - 7p for used quota.

It certainly looks a good buy for those left in the business and especially so when I look back at the heady days of the bull market when quota reached 80p!

National reserve claims

If you are thinking about trying to claim some extra SP entitlement from the National Reserve then it has to be done as part of the application form later this spring. DEFRA is drip feeding its thoughts on this category and is looking at three possibilities.

1. Land purchased

2. Land leased for six years or more

3. Money invested in improving production capacity

All three heads of claim may result in an award from the National Reserve but to qualify you must have taken action prior to the May 15, 2004.

As far as I can see if successful the farmer will have the 2004 year added to his reference period and it will increase the allocation of "history".

Anyone interested please have a word with your advisors.

Black market for cattle passports

My absolute faith in the integrity of Radio 4 was shattered last Saturday morning when I heard a lady reporter verbally laying into her victim on the Farming Programme.

The subject was cattle passports and her firm belief was that there was a widespread black market amongst farmers who were trading the documents from £50 - £100 a set. She based this on the recent prosecution of a farmer/dealer in Lancashire who had apparently switched a passport.

The opportunities for such fraud are limited by the declaration on each passport of an animals breed, sex and age, all of which would have to match if a switch was to be successful.

It is just possible but highly unlikely and I haven't come across anyone doing it.

I must reluctantly conclude therefore that Radio 4's harassment of our industry on this point was unfair.

Straw goes through the roof

With the poor harvest weather in August went a lot of good straw and unfortunately it is now time to pay the penalty.

Barley straw hit £79/tonne in Carlisle last week with wheat making £56/tonne which is interestingly close to the spot price for the grain itself!

To save precious bedding I saw a photograph of Paul Dunn's cows at Helmsley grazing outside this month.

Pay for your SP appeals

As if to prepare us for bad news, Deaf Ear has produced its appeals procedure just in case you are dissatisfied with their interpretation of your historic element of the Single Payment.

The first stage will be free in that their own Customer Relations Unit will review your file. Perhaps a rubber stamp would have been cheaper!

Stage 2 of the procedure can only be triggered if you pay £100 for your case to be heard by a panel of 3 independent assessors appointed however by the Minister.

I can't wait to see if Deaf Ear have looked up the meaning of independence in the Oxford Dictionary as it has connotations of acting outside the influence of or under the patronage of political masters; and of this the have hitherto being blissfully unaware.

Bits of fun

My Sinnington correspondent has been musing again; and this time on Prince Harry's tasteless choice of fancy dress over the festive season.

However our correspondent considers the options now available to the young Prince are severely restricted:

1. He cannot go as a cannibal chief because the vegetarians would object

2. If he dressed up as Doctor Livingstone, the Right to Roam Brigade would have a field day

3. And if he put on the cloak of Sir Walter Raleigh, the Anti Smoking people would never stop puffing.

A little boy came back from nursery school having had a lovely time playing with a friend; and his mummy asked what his name was. He replied "Van"; which puzzled his mother thinking there must be a Dutch or an American family at the school.

The next day the little boy pointed out his friend's mother, during conversation the new found friendship with Van was mentioned to which the second mother replied

"What do you mean Van - I only have one son and his name is Laurie!"

Market report

Forward 142 cattle including 60 bulls, 658 sheep including 98 ewes. Light steers to 112p O J Barker, Snainton ave 110.9p, heavy steers to 124p Mrs C Mason, Wold Newton, ave 110.5p, light heifers to 138p G I Marwood, Harome, ave 109.3p, heavy heifers to 145p T D Nichols, Stape, ave 109.1p, light bulls to 106p R Mason, Ling Hall, medium bulls to 107p R Mason, Ling Hall, ave 106.5p, heavy bulls to 125p.

R Flintoft, Bransdale, ave 106.8p, black and white bulls to 100p J T Medd, Rievaulx, ave 84.6p, standard hoggs to 115.3p, T F W Morley, Fylingdales, ave 108.3p, medium hoggs to 127.5p, L Fowler, Stokesley, ave 113.2p, heavy hoggs to 109.8p S R Grayson, Pickering, ave 104.7p, overweight hoggs to 100.3p, C Foster, Nafferton, ave 98.6p, ewes to £50 S Hunter, Hunmanby, ave £35.70.

Updated: 13:06 Wednesday, January 26, 2005