SUCKLER COW PREMIUM (Hansard, 9 May 1989)

§ Baroness Trumpington

The beef reform package agreed by the Council of Agriculture Ministers in January included both an increase in the Community-funded element of the suckler cow premium from 25 ecus to 40 ecus and the continued option of paying a top-up of 25 ecus from national644WA funds. In Northern Ireland the first 20 ecus of this top-up are also met from Community funds. More recently as part of last month's price fixing we negotiated a substantial devaluation of the green pound for beef which eliminated the monetary gap.

I am pleased to announce that the Government have decided to pay the maximum rate of national supplement to the suckler cow subsidy, taking full account of the recent devaluation and the scope provided by the scheme rules. As a result the rate of the suckler cow premium for the 1989–90 scheme year will be increased from £33 40 per cow to £47 43.

More beef producers than ever will benefit from the increased rate of premium because of a further change in the rules which in future will allow premium to be paid to farmers earning less than half their income from their holdings, provided they meet the other scheme rules. In particular, we would expect some crofters, farmers seeking to diversify, and those on low incomes to be able to benefit.

These changes to the suckler cow premium, which mean a 42 per cent. increase in the rate, demonstrate the Government's commitment to the beef sector, especially the more extensive production of quality beef from specialist suckler herds. For several years now the specialist beef sector has shown good signs of recovery. Producers now have an added incentive to build on this recovery and take advantage of the more open competitive climate which results from the reformed beef regime.