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Scottish Beef Calf Scheme
The Scottish Beef Calf Scheme (SBCS) was introduced as a Scotland-wide
support measure in 2005 under Council Regulation (EC) 1782/2003 (article 69)
to protect and enhance the environment through supporting quality cattle grazing,
particularly in the remote and fragile areas.
SBCS has an annual budget of 29.8 million Euros and runs from 1 January to 31
December each year. The scheme pays on male and female calves at least 75%
beef bred born on a Scottish holding and kept there for 30 days. The payment
rate for eligible animals is not fixed; it is set to match the number of eligible
animals claimed each calendar year. The first 10 eligible animals in any claim are
paid at a higher rate than other eligible animals claimed for in the same year. The
rate for 2010 was €121.40 for each of the first 10 eligible animals and €60.70 per
animal thereafter. Holdings may be inspected to verify claims.
The CAP Health Check reforms in 2008 allowed for such measures to continue
unchanged until 2012. For any measures to continue beyond 2012 however they
have to convert to measures that meet the requirements of Article 68 of the
Health Check Regulation (EC) 73/2009.
If Scotland wishes such support to continue beyond 2012 we have to notify the
European Commission by 1st August 2011.
We have already carried out wide consultation on the SBCS and the use of
Article 68 measures both under the CAP Health Check and through Brian Pack's
Inquiry and have received a wide range of views from stakeholders. We have
also discussed the issue several times in previous CAP stakeholder meetings.
Conversion to Article 68 would allow the granting of support to farmers under
conditions outlined in the Regulation. Any successor scheme must be designed
within the framework of the governing legislation which is quite restrictive. Having
taking account of the various factors our analysis is that, if there is a successor
scheme, the most viable option would be under Article 68 (1) (b), “to address
specific disadvantages affecting farmers in the dairy, beef and veal, sheepmeat
and goatmeat and rice sectors in economically vulnerable or environmentally
sensitive areas, or, in the same sectors, for economically vulnerable types of
farming”.
A scheme under Article 68 (1) (b) would continue until the new CAP regime post
2013 came into force and under Article 69 (4) of the Health Check Regulation
would be limited to 3.5% of the SFP ceiling.
The Brian Pack Inquiry considered the use of Article 68 and recommended that
the SBCS should continue in some form after 2012 (e.g. convert from Art 69 to
Art 68 measures). The Inquiry also recommended that consideration should be
CAP 4 - 008
given to the possibility of creating a more targeted scheme. The Inquiry identifies
providing an incentive for smaller herds as a possible targeting measure. The
Inquiry also recommended that there should be no additional Article 68 measures
before the post 2013 CAP regime is known.
The alternative to the introduction of a new scheme would be to bring SBCS to
an end and not replace it during the interim period between 2013 and any new
regulations. Under Article 65 of the Health Check Regulation (EC) 73/2009, the
contributions taken from farmers who received support under the previous beef
headage schemes (suckler cow, beef special premium, etc) would be returned to
them in the form of an increase to their single farm payment entitlements. For
RPID, there would be a reduction in cattle inspections of between 170 and 400
visits with the concomitant reduction in penalties applied to individual farmers.
May 2011