SOME £21.4m of the £25m financial package agreed on May 19, is available to Northern Ireland farmers in a new support fund for those who have suffered significant financial losses due to the Covid-19 pandemic.

The support package, provided by the Northern Ireland Executive for farmers, has outlined assistance for Irish beef, dairy, sheep, potato and ornamental horticulture sectors affected by the virus.

To date, Northern Ireland is the sole region in the United Kingdom to get such a support package for its farming industry. The National Farmers Union in Scotland did not put a request forward.

Minister for agriculture and rural affairs, Edwin Poots confirmed that the money was for the agri-food industry to offset losses incurred as a result of short-term disruption to the market place, when other support measures are available to businesses which have seen rates of compensation for losses incurred of between 80 and 100% – depending on the nature of the business and other support already available.

A breakdown of the £21.4m Covid-19 fund, reveals 100% losses covered for both the beef and the sheep sector with £7m and £232,000 available respectively, while 80% of losses inflicted on the dairy industry will be covered with an £11m package.

Financial packages available to the potato and ornamental horticulture sector amount to £1.2-£1.6m each, representing an 80% cover.

Mr Poots said there was evidence within the beef sector demonstrating that the worst losses had been incurred by beef finishers who bought stores at higher prices and faced low finished cattle values, due to the collapse of the food service market and weakness in international markets for fifth quarter products. Therefore, the proposed support for beef producers is comprised of two flat rate payments per head based on the number of animals presented for slaughter and when those animals were marketed.

Payment 1 of £40 per head would target those producers impacted most when beef prices fell significantly following 'lockdown', and Payment 2 of £33 per head for cattle slaughtered in the period mid-February to end of June. Both payments would be made to the farmer who had those animals in their herd for at least 30 days prior to slaughter.

He added that many beef farmers have not been able to receive any benefit from the Self Employment Relief Scheme due to low prices and levels of profit in recent years and on that basis, 100% of their losses were being compensated for amounting to £7m.

Similarly, losses within the dairy sector demonstrated a market slow-down started in March when 'lockdown,' caused the hospitality and food service sector to close and milk price for dairy farmers was reduced, with proposed support based on making payments of an amount per litre based on a reference period before 'lockdown' (February 2020) in order to determine the price per litre on which payment is based.

Losses within the sheep sector have been assessed and evidence demonstrates that the price for lambs fell in week ending March 28, and remained relatively low for four weeks before recovering to pre Covid-19 levels in the week ending April 25.

Comparing total sales in the four week period (w/e 28 March to w/e 25 April) to the previous four weeks before the prices fell, there was a total loss to the sector of £232,000 which equates to approximately £6.88 per lamb.

Mr Poots added that sheep farmers have not been able to receive any benefit from the Self Employment Relief Scheme due to low levels of profit in recent years and therefore was compensating them for 100% of their losses.

These financial funds total approximately £21.4m of the £25m support package secured from the NI Executive, which Mr Poots said would go a long way in helping these businesses survive the current crisis. However, he added there is possibility of further market disturbance as a result of the pandemic and the need for additional farmer support.

"For that reason, I want to retain a budget of just over £7m based on the residual funding of £3.6m (from the £25m) and the £3.6m that was reprioritised internally. This would allow me to address additional issues and challenges Covid-19 may present in the weeks ahead.

"For example, if there is evidence of impacts on the lamb market as higher numbers of lambs are presented for sale in the coming weeks or if there are consequences of a food processing business closing due to an outbreak amongst staff. I will therefore continue to monitor the situation and assess the impact on those sectors that have not been supported to date."