Suckler beef farmers show poor interest in State-backed schemes
There are almost 73,000 suckler cow farmers in the country, but fewer than 34,500 applied for the schemes.
The low uptake is evident across all counties.
In 2008, over 53,000 farmers had applied for the suckler cow welfare scheme. One has to ask, why have so many of the country’s lowest earning farmers ignored this chance of extra earnings through a government scheme?
Suckler beef farming is characterised by very low profitability.
Teagasc’s National Farm Survey of 2013 showed the average family farm income for cattle rearing farms (on which suckler cow production is the dominant enterprise) was just €9,469 (22% down from 2012).Compare this to the €64,371 average family farm income for dairy systems, €15,595 for cattle other systems (on which cattle fattening is the dominant farm enterprise), €11,160 for sheep systems and €29,907 for tillage systems. The figures speak for themselves.With low income in suckler beef farming, one would expect farmers in this system to make the most of government schemes.
Fianna Fáil’s spokesperson on agriculture and food, Éamon Ó Cuív, TD, points the figure at the high level of bureaucracy in beef support schemes. He said, “Farmers are being discouraged from applying to agri-schemes because of the high level of red tape involved for very little return”. But is there more than bureaucracy to blame?
Firstly, let’s look at the possible financial return from the schemes. Let’s take a 50-cow suckler herd, with each cow producing one calf. The Beef Genomics Scheme is worth €40 per calf, this amounts to a payment of €2,000, if all conditions of the scheme are met. There is the cost of DNA sampling 15% of the herd. For a 50-cow herd, this equates to eight animals at a cost of €30 each, so €240 will be deducted from the €2,000, for DNA sampling, this still leaves a Beef Genomics Scheme payment of €1,760.
The farmer also has to participate in the Beef Data Programme, as one of the qualifying conditions of the Beef Genomics Scheme. The Beef Data Programme payment is €20 for the first 30 calves and €10 for the next 20. So the farmer with 50 suckler cows which produce 50 calves can expect a BDP payment of €800.
This brings a total payment to the farmer under the two schemes of €2,560.
Even for a 30 cow herd, fully complying with all the scheme rules, it is still worth €1,620.
They are not huge payments, and are smaller than what suckler farmers were used to in the Suckler Cow Welfare Scheme. But BGS and BDP payments could help pay for feed or fertiliser, etc.
Minister Coveney has made proposals in the Rural Development Plan for higher payments under the two schemes, to increase to €80 from next year (when farmers will again have the opportunity to apply to participate).
Something as simple as the names of the schemes might have put farmers off. Talking to some Teagasc advisors, I gather that there were many calls from confused farmers who had received their application forms for the schemes, but didn’t understand they were about. Perhaps the Department of Agriculture should have included a helpsheet with the application forms explaining simply what was involved, and how it would benefit the farmer in the long run. Or maybe they should have held information evenings around the country to explain the scheme to farmers.
If farmers knew exactly what they would have to do in the scheme, and what they would get in return, maybe more would have signed up. The Minister said at the launch of the schemes that they would help to accelerate genetic improvement that will increase profitability for suckler farmers, and they are part of his plan to make Ireland a beef breeding world leader. So it is a little disappointing that he and his Department didn’t push harder for a higher uptake.
Another possible reason for farmers not applying is how long they would have to wait for their payments. Participants in the 2013 Beef Data Programme only recently started to receive payment for that scheme. That’s too long to wait for payment on calves that were born over a year ago – scheme information having been recorded by farmers around this time last year, and most of the scheme requirements having been met well in time for farmers with spring born calves to be paid before the end of the year.
Or is low uptake of this year’s schemes a sign of extremely low morale among suckler farmers?
I attended a suckler beef discussion group meeting recently in Mayo, where suckler beef farming is a major enterprise. All of the farmers present questioned if they had a future in suckler farming.
Many of them were very gloomy about the future, and thinking of changing to other enterprises, due to changing beef market specifications, falling demand for continental breed cattle originating from the suckler herd, and mart managers warning that weanling prices will be significantly lower this autumn.
Farmers are very resilient, determined and committed, and would normally grab any chance to improve their income through government schemes. But it seems that the fight is gone out of them — and many of them didn’t think that joining the BGS and BDP would make their futures any more sustainable.
Next year, the payment under the two schemes is set to increase to €80 per calf. Presumably the minister will open the schemes again to new applicants early next year. But farmers don’t like too much form filling and paper work, and the minister should be aware of that. Hopefully, he can reduce the bureaucracy and successfully encourage farmers to join the schemes
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