NFU Scotland is championing the benefits of coupled beef support just as payments of £101 per calf hit farmer’s accounts this week.

The Scottish Suckler Beef Support Scheme (SSBSS) is paying out £40m to underpin Scotland’s iconic beef sector, by supporting farmers and crofters in breeding beef calves from suckler cows. The union said this would help ensure that herds remained at a level capable of sustaining Scotland’s commercial beef industry.

From that pot, £34m is for eligible mainland calves and £6m specifically for island-based calf claims.

Contrary to industry fears of fewer beef cattle being on farms, the number of claimed calves in 2022 jumped from 372,508 to 379,999. Further, there was a small increase in the total number of mainland and island businesses making a claim, up from 6503 to 6519.

As a result of the increased animals claimed, the payment per head dropped slightly to £101.42 for calves on mainland Scotland with island calves receiving £144.47 per head.

However, NFU Scotland still voiced concerns about the impact that the cost of production crisis is having on beef herds and the likelihood that beef cow numbers are currently falling, suggesting that the total calf claims made during the 2023 scheme year will be down.

Analysis of figures from NFU Scotland’s intentions survey, conducted with support from Quality Meat Scotland at the start of the year, pointed to an average beef herd size reduction of four per cent versus last year.

NFU Scotland’s livestock policy advisor, Lisa Hislop, said: “NFU Scotland welcomes the timely and prompt payments of the SSBSS this year. While it is encouraging to see a two per cent uplift in animals claimed for 2022 compared to 2021, it’s important to note the number of beef calves claimed and the number of farms and crofts claiming is still below 2020.

“When combined with our intention survey results, which points to a declining beef herd and low levels confidence, our iconic beef sector still faces ongoing uncertainty and vulnerability despite the very robust prices for store and prime cattle being seen just now.

“It is in the interests of our food and drink sector and our rural economy that farmers and crofters see a future in beef. It is clear that coupled support schemes such as SSBSS, which reward active farming and support our suckler beef herd, remain an anchor for farmers and crofters in these turbulent times.

“That is why targeted support schemes must remain a key element of Scotland’s future agricultural support package from 2025 onwards.”

The Scottish Suckler Beef Support Scheme (SSBSS) year runs from January 1 to December 31 and claims can be made throughout the year. The payment is made on both male and female calves that are at least 75% beef bred and that have been born on a Scottish holding and kept there for 30 days.

The payment rate is set to match the number of eligible animals claimed in each year, with different rates attached to mainland and island calves.