National Farmers' Union no confidence vote (From Gazette & Herald)

National Farmers' Union no confidence vote

LAST week the NFU Council gave a unanimous vote of no confidence in the RPA's handling of the Single Payment Scheme.

Some cynics might say that the spectre of break-away militant groups persuaded the NFU to make a statement of such forthright condemnation, but it reflects the total frustration that we all have in agriculture of the manner in which our affairs are being handled and the complete disregard that the Government appear to show for our future economic welfare.

Originally, we were told we would get to know our entitlements in the late autumn of 2005; then it was to be by the end of the year; in December we were told it would be in early January; and in January we were given a firm date of February 14.

Lord Bach is now whining that the RPA still have 400,000 individual tasks to complete and will not guarantee when payments will begin.

The whole affair is a complete shambles and those involved, including all the Ministers and Johnston McNeil, should be put to the sword.

At the very least we ought to be entitled to 80 per cent of estimated claims based upon our SP5 applications and then the balance could be paid in due course.

I find it more difficult each week to search out good news for this column and the proposed Government strategy for dealing with TB is another recipe for disaster.

Whilst everyone in the real world knows that it is badgers that are to blame, Defra is frightened to death of the animal rights lobby; and is not prepared to consider gassing the animals in order to tackle TB in wildlife.

Instead, they are suggesting that farmers themselves should be responsible for snaring and shooting badgers.

Farmers in the south west are so incensed that they are threatening to refuse to co-operate with the pre-movement testing of cattle demanded by Defra.

Defra and the Government must take responsibility for a TB epidemic and it is no good fooling ourselves that it will not affect us in due course.

Latest figures show that more than 2,000 cattle per month are being compulsorily slaughtered with positive TB tests.

There are going to be quite a number of tax problems arising out of the Single Payment but here are one or two that might prove of interest:

Any farmer who held quotas prior to the SP regime could be able to claim a capital loss if the quota value is shown in their accounts. This is a useful relief so please take advice from your accountant. It will not apply to milk quota which still remains in existence although worth a lot less!

The Single Payment itself is an annual receipt and is therefore charged Income Tax in the normal way.

Entitlements are, however, a capital asset and will be deemed to have a nil base value until they are transferred or sold.

When this happens the Capital Gains Tax regulations will be triggered.

Mike Blacker, from Shipton, has been doing sterling work on behalf of sugar beet growers to try and get them as fair a deal as possible out of the new EU reforms.

He has masterminded a deal with British Sugar whereby farmers can send their surplus sugar beet into a new bioethanol plant at Whissington which should be ready in early 2007.

The money to be paid for the beet will probably be no more than the C Quota level at present but at least you will find a home for any over-production.

I listened to the Food Programme on Radio 4 this Sunday to hear a discussion on the new rules regarding beef on the bone.

Up to now it is only animals over 30 months of age that have had to have the spinal cord removed but the EU Food & Safety Committee decided all must be harmonised and took advice from its scientific group.

The scientists reported that at 30 months of age there was "a considerable but not absolute safety margin" and recommended instead a maximum age of 21 months before the vertebral column need be removed.

In the end the EU Committee opted for a 24 month age limit and this comes into force within two months. Our own Food Standards Authority stated on air that the whole affair had "very, very little to do with safety issues" which seemed a strangely controversial comment.

Norman Bagley, who represents the independent wholesalers, stated that the Directive had been further gold-plated by insisting that only approved licensed cutting plants could carry out the procedure.

Currently, 120 abattoirs have no such facility and they will have to send carcasses over 24 months of age to an approved cutting plant at a cost of round about £80 per carcase.

The effect will be to threaten a lot of small to medium sized businesses including butchers who will have this added cost to absorb.

There is a desperate need to persuade the EU that all our abattoirs and butchers are competent enough to remove the vertebral column.

Although for some weeks cattle born after August 1, 1996, have been coming on to the market, this is the first week where they cannot go through the alternative route of the OTMS Scheme.

Markets such as Malton and York are offering the service of selling them by auction and we will ensure that there is sufficient buyer cover.

There are differing views as to where the trade will settle but my opinion, for what it is not worth, is that the fleshed cows will be making from around 45p up to as much as 80p/k for the younger end.

There will be more difficulty with unfinished and old boning cows where forecasts are as low as 20-30p/k.

If you have well finished cows then these perhaps want directing to the slaughter market but if you have thinner cows then you should consider selling them in the 6 day market for someone else to put more flesh on. Keep an eye on the reports and please ring for advice.

This month's Pig World has their regular survey results from "PorkWatch".

I know I keep banging on about proper labelling but the comments on Asda's "Wiltshire cure bacon" prove the point. Its Wiltshire cure product is Dutch!

On the other hand, Morrisons has taken positive action by recently launching its premium range called "The Best" with more British lines in bacon, gammon and sausage.

There is a lobbying group called The Taxpayers Alliance and they have announced that Whitehall wastes more than £80 billion on pointless schemes every year. For example, the NHS spent £225,000 warning pensioners of "the dangers of ill-fitting slippers".

Another gem is the Arts Council who stumped up £77,000 to send a team of artists to the North Pole to make a snowman!

Forward 108 cattle including 29 bulls and 13 cows, 757 sheep including 127 ewes. Heavy steers to 116.5p, JL Gray, Grindale, ave 102.6p; light steers to 137.5p GI Marwood, Harome, ave 106.4p; light bulls to 89.5p M Petch & Sons, Pickering, heavy bulls to 119.5p MA Horner, Bransdale, ave 109.3p; light heifers to 132.5p G I Marwood, Harome, ave 108.2p; heavy heifers to 138.5p GI Marwood, Harome, ave 107.6p; black and white bulls to 94p M Ellerby, OTM cows to 82.5p, Westfield Farms, Settrington, ave 62.6p; OTM heifers to 84.50p G Sellars, Newton-on-Rawcliffe, ave 80.8p; standard hoggs to 102.7p E Woodmancey, Newton-on-Rawcliffe, ave 94.9p; medium hoggs to 109.7p, WJ & KA Smith, Salton, ave 102p; heavy hoggs to 104.3p DF Byass & Son, Bainton, ave 99.2p; overweight hoggs to 101.8p, C Dougherty, Kirby Misperton, ave 89.4p; ewes to £43 HW Ward & Sons, Great Habton, ave £33.

Updated: 09:22 Wednesday, January 25, 2006