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Scottish beef producers to suffer under new CAP reforms
two cows
Around 20 per cent of farm businesses already making a loss are likely to see greater losses under the new reforms.

New regime will also impact Scottish dairy farms

Most Scottish beef farms will suffer financially under the new Common Agricultural Payments (CAP), research by Scotland’s Rural College (SRUC) has found.

The new regime will also have an impact on Scottish dairy farms. Yet it is the world market price for milk that will have a more direct effect on future viability.

The research briefings put together by SRUC’s Rural Policy Centre and will help to inform policy makers.

In the study, researchers used details from the Scottish Farm Accounts Survey, together with data from Quality Meat Scotland. They also carried out a survey with farmers, examining their reactions to various scenarios.

The data was then processed through ’Scotfarm’, SRUC’s own economic computer model, which produced a optimised net profit for each farm.

“We considered farm level performance before the new reforms and compared that with farm performance post-reform,” says SRUC senior agricultural economist Steven Thomson. “Whilst the model did not allow for the five year transition process, we believe the results offer policy makers a good indication of the long-term effects on key enterprises.”

Scotfarm found that specialist beef producers are most affected, predicting that over three-quarters of the FAS businesses would be in a worse position. Of these, around a third are expected to suffer reduced profits, while another this would move from a profit to a loss.

Furthermore, around 20 per cent of farm businesses already making a loss are likely to see greater losses under the new reforms. Just 13 per cent of farms, on more extensive systems, are predicted to make a profit.

When asked about their intentions, farmers indicated that if they experienced a 25 per cent increase in payment they would enlarge their herds. However, the same intention survey suggests that faced with a 25 per cent cut in subsidy payments, over half would decrease their livestock numbers.

“It will be important to consider the future resilience of the sector with so many farms predicted not to show a profit,” comments Steven Thomson. “With lower support payments we believe that the sector will become increasingly polarised as farmers respond by either focussing on environmental support and reducing herd sizes, or simply become more intensive.”

The majority of dairy farms in Scotland are also expected to have reduced levels of profitability. However, CAP support represents a lower proportion of incomes in the sector. Researchers say it is the future volatility of the milk price and input costs that will have a greater impact on long-term viability.

Even so, dairy farmers stated a reluctance to maintain expansion plans under a reduced CAP support regime. They suggested that support payments still have an influence on decision-making in the dairy sector, particularly following falls in the world milk price.

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Cold-water dip to raise funds for Vetlife

News Story 1
 The veterinary mental health charity Vetlife is inviting the veterinary community to join it for a sponsored cold-water dip.

The event will take place at Walpole Bay, Margate, on 17 May during Mental Health Awareness Week. Participants of all abilities can join in the challenge and are advised to bring a towel, a hot drink, a snack, and warm clothes to get changed into afterwards.

Those taking part are being asked to try to raise 100 each to support the work of the charity.

Details about how to take part can be found here

Click here for more...
News Shorts
Bluetongue low vector period ends

In an update to its bluetongue guidance, the Department for Environment, Food and Rural Affairs (Defra) has announced that the seasonal low vector period for the disease has ended.

With winter over, Defra is planning for a possible increase in cases as midges become more active. It has warned that farms along the east coast of England from Norfolk to Kent, and along the south coast from Kent to Devon, are at highest risk from infected midges blown over from northern Europe.

Since the virus was detected in England in November 2023, there have been 126 confirmed cases. The most recent case to be confirmed was on 1 March 2024.

Farmers are asked to continue to frequently monitor their livestock and ensure their animals and land are registered with the Animal and Plant Health Agency.