Uncertainty over the shape of the new Common Agricultural Policy (Cap) in Scotland is no good for the industry, warn the organisers of next month’s ScotSheep event.
Host farmer John McFarlane, who keeps 1,500 ewes and 700 suckler cows at Quixwood near Duns in the Borders with his son Iain, said although the full details of the new Cap package had not emerged, the business was likely to see a 40-50% reduction in direct support.
“With the falling beef price and the Cap reform, we are going to be a big loser and we are going to need to have a serious think about suckler cows in particular,” said Mr McFarlane.
He said the beef side of the business would be the hardest hit.
“If we get extensive enough with the sheep, we can maybe make enough money from them without single farm payment, but I don’t think anybody can make suckler cows work,” warned Mr McFarlane.
“Cows have been living on subsidy for as long as I can remember. The beef price needs to go higher but there’s no sign of it at this moment in time.”
His comments come the same week the Scottish Beef Association called on farm minister Richard Lochhead to stand up for the industry, warning beef producers were set to lose out under the new Cap regime.
The association’s chairman Scott Henderson warned Scotland’s main beef producing areas – Dumfries and Galloway and the north-east – were set to see a reduction.
He urged the farm minister to stand up for the sector, otherwise he runs the risk of being remembered as “the man who finished Scotch Beef”.
Bank of Scotland head of agriculture Sandy Hay said nobody in the industry was doing very much in terms of investment and planning for the future due to the uncertainty surrounding the new Cap.
“Why would they? We don’t even know what the rules are. The majority of peopl;e are waiting to see how it all pans out and then planning,” said Mr Hay.
“The Cap needs to be doing things in the sheep and beef areas to make sure that confidence is maintained and increased.”
ScotSheep event chairman David Leggat – United Auctions executive chairman – said the new Cap must address suckler cows and upland sheep otherwise the future for the sector is going to be difficult.
National Sheep Association (NSA) chairwoman for Scotland Sybil MacPherson said: “Cap reform is hugely damaging for the whole industry. We have been aware we have been moving to an area-based system but the fact that nothing is happening is hugely damaging.”
The association’s development officer for Scotland George Milne said it was vital the new Cap delivered support to livestock farmers, particularly those farming in the rough grazings areas.
The ScotSheep event, which is organised by the NSA Scottish region, takes place on Wednesday June 4 on the McFarlane family’s Quixwood farm, Grantshouse, Berwickshire.