New premia may cause problems

Marts: As record prices have continued to be paid for weanling bulls at mart sales this week, it is feared that many purchasers have not factored into the purchase price changes to the premia payments at the end of next year.

Most weanlings purchased in recent weeks should qualify for both Special Beef Premia payments applicable at 9 months and 21 months, but for those purchasing weanlings in the spring of 2004, many may not be eligible for the second SBP.

All males born since May 1st 2003 are ineligible for the 21-month premia. They will not be the required age for application before the end of the current scheme on December 31st 2004, prior to the change to the new direct payments coming into effect on January 1st 2005 following the CAP reform.