August 26, 2020

US$59 million Irish scheme to support pandemic-affected beef sector approved

A €50 million (US$59.2 million) Irish scheme to support those operating in the beef industry has been officially approved by the European Commission.

The scheme --  called Beef Finisher Payment  -- will aid those who are affected by the COVID-19 pandemic, The Irish Times reported. Support will come in the form of direct grants to help address liquidity shortages for up to 42,000 farmers affected by the pandemic between February and mid-June. It is especially aimed at farmers with finished animals who suffered from both reduced prices and other restrictions in getting animals to market.

Brendan Golden, livestock chairman at the Irish Farmers' Association, said the scheme was one of the few positives for the beef sector at the moment.

"It's a very nervous time for beef farmers and they are under fierce pressure economically, but the feedback we've got from our members about the scheme has been very positive and we expect to see a lot of applications being made."

Golden's comments came as a document recently published by the Department of Business projected a loss of €700 million-1.6 billion (US$828.2 million-1.9 billion) for the primary agriculture sector from COVID-19, with beef farming expected to be the most affected.

In addition, a no-deal Brexit would pose further risk for the beef sector as this development could affect Ireland's high level exports to Britain.

The Beef Finisher Payment scheme is a one-off, exchequer-funded grant aid programme that has been granted approval by the commission under the Covid-19 State Aid Temporary Framework, which was expanded earlier this year specifically to boost support for businesses impacted by the coronavirus outbreak.

Details of the scheme were announced by then minister for agriculture Dara Calleary earlier this month.

The Department of Agriculture said eligibility for the programme was to be based on the number of cattle sent for slaughter in the period from February 1 to June 12, subject to a limit of 100 animals per herd. Based on estimates of eligible animals, a rate in the region of €100 (US$118) per animal will be payable.

Applications for the scheme are due to close on September 9.

- The Irish Times