Research published by SRUC (Scotland's Rural College) confirms that under the new Common Agricultural Policy (CAP) payments most of Scotland's intensive beef farms will suffer financially, while for many of Scotland's breeding sheep farms there will be a positive financial effect. The new regime will also have an impact on Scottish dairy farms, but it is the world market price for milk that will have a more direct effect on future viability.

The Research Briefings are based on details from the Scottish Farm Accounts Survey (FAS) which the College administers on behalf of the Scottish Government, together with data from Quality Meat Scotland.

They processed the data through "Scotfarm", SRUC's own economic computer model. It produces an optimised net profit for each farm taking into consideration resources such as land, labour, feed and livestock replacements to produce an optimised net profit for each farm and including their CAP Pillar 1 and 2 payments.

Specialist beef producers are most affected, with Scotfarm predicting over three-quarters of the FAS businesses would be in a worse financial position. Of those affected, around a third are expected to suffer reduced profits, whilst another third would move from a profit to a loss. Around 20 per cent of the farm businesses already making a loss, are likely to see greater losses. Only 13 per cent of farms, on more extensive systems, are expected to make gains.

For sheep the situation is less stark, with 70 per cent of the farm businesses predicted to have a financial improvement in the post-reform period. However this is often due to the fact that they will receive an uplift in support payments.

Market round-up

United Auctions sold 372 store heifers at Stirling on Wednesday to a top of 25p per kg and an average of 205.6p (+5.8p on the week), while 423 store, beef-bred bullocks peaked at 269.9p and levelled at 214.6p (+7.6p). Seventy-one store B&W bullocks sold to 160.8p and averaged 131.5p (+12.2p).

In the rough ring 152 beef cows averaged 115.8p and 12 dairy cows levelled at 91.8p.

C&D Auction Marts Ltd sold 8 prime heifers in Dumfries on Wednesday to a top of 218p and an average of 191.5p.

There were 71 OTM cattle presented in the rough ring when beef cows averaged 119.9p and dairy cows levelled at 91.8p.

The firm also sold 706 prime hoggs to a top of £90 per head and 224p per kg to average 181.2p (+9.7p).

The 476 cast sheep forward saw heavy ewes sell to £136 for Texels and average £74.71 (+£4.83), while light ewes peaked at £76.50 for Cheviots and levelled at £57.65 (+£7.53).