Beef premium penalty will cost livestock farmers €2,760 each

THE beef premium overshoot will cost 29,000 livestock farmers an average bill of €2,760 each, unless Agriculture Minister Mary Coughlan succeeds in her aim to negotiate a solution at EU level, according to IFA.

According to IFA National Livestock Chairman, John Bryan, the overshoot penalty would reduce the first stage beef premium by 27% and the second stage premium by 23%.

“These reductions involve cuts of €62 per head on the 9 month premium, €78 on bull premium and €53 on the 21 month premium with extensification premium.”

“In a lot of cases, this is more than the margin on these cattle for the farmer.”

The farmers with more than 25 premium applications who face overshoot penalties are currently being paid a reduced beef premium balancing payment, which takes account of the overshoot.

Minister Coughlan was expected to raise the matter with the European Commission at this week’s farm council meeting in Luxembourg.