BEAM scheme

Zenith1000

Active Member
Lads, whats your opinions on the BEAM scheme? We are suckler farmers and we will get 40 eur per cow but I dont think it will make much benefit when we have to reduce by 5% as we arent massively stocked and were going to look at increasing numbers since im now involved more.
So i dont think we are going to apply as im sure they will demand money back if we dont reduce numbers.
Think the only people who will benefit the most if even is people at max stocking rates and dont mind cutting back a few numbers.
Any thoughts appreciated.
 
Lads, whats your opinions on the BEAM scheme? We are suckler farmers and we will get 40 eur per cow but I dont think it will make much benefit when we have to reduce by 5% as we arent massively stocked and were going to look at increasing numbers since im now involved more.
So i dont think we are going to apply as im sure they will demand money back if we dont reduce numbers.
Think the only people who will benefit the most if even is people at max stocking rates and dont mind cutting back a few numbers.
Any thoughts appreciated.
You could look at it a a low cost loan, the interest rates on money clawed back are modest compared to what you will get elsewhere ( bank or merchant) then if you do decide suckling is profitable (do your figures) and you do expand then you pay them back in 2 years time.having used the money to help finance your expansion for 2 years. The way things are looking at the minute I wouldn't not apply because you think the outlook for suckler is rosy.
 
Lads, whats your opinions on the BEAM scheme? We are suckler farmers and we will get 40 eur per cow but I dont think it will make much benefit when we have to reduce by 5% as we arent massively stocked and were going to look at increasing numbers since im now involved more.
So i dont think we are going to apply as im sure they will demand money back if we dont reduce numbers.
Think the only people who will benefit the most if even is people at max stocking rates and dont mind cutting back a few numbers.
Any thoughts appreciated.

We are fairly heavily stocked. We will have to cut down by 3 to 4 cows to get the 5%. Better to cull 6 to 8 of our poorest performing cows and replace with 3 to 4 heifers off our better performing cows. We could also choose to sell more weanlings as opposed to keeping them as stores or we could sell more weanlings in autumn rather than carrying them to spring. Either would probably bring us most of the way to achieving the 5% reduction.
 
Out of curiosity but whats the tax situation if you reduce by this 5% their making us do if we want the BEAM?. On a heavily stocked finishing system and 5% will be a nice few cattle less which will mean the revenue will be on for their pound of flesh. I'm of two minds what to do tbh.
 
Out of curiosity but whats the tax situation if you reduce by this 5% their making us do if we want the BEAM?. On a heavily stocked finishing system and 5% will be a nice few cattle less which will mean the revenue will be on for their pound of flesh. I'm of two minds what to do tbh.
But if your stock on hand falls in your accounts, that's treated as a loss is it not?
 
But if your stock on hand falls in your accounts, that's treated as a loss is it not?
I'm not sure about that. Lets say you reduce numbers by 20 for arguments sake at a value of 1500 a head. Thats 30k you've sitting in your account. Maybe I'm way off
 
I don't think it's worth my while, only 14 qualifying cattle so stand to get €1400 and have them breathing down my neck, if I carried 3 more I'd make the same with no hassle, bit of a contradiction as the scheme is supposed to bring down stock numbers..
 
I'm not sure about that. Lets say you reduce numbers by 20 for arguments sake at a value of 1500 a head. Thats 30k you've sitting in your account. Maybe I'm way off

5% is 5 out of every 100 full units that you would be keeping for a whole 12 months. It's not a big reduction. It could be achieved by killing some animals at a younger age or keeping a few younger cattle instead of older larger cattle.
 
If your stock are accurately valued in your accounts there won’t be a tax issue reducing numbers, however if they are valued below their true value in accounts it could cause tax problems
 
When you apply for BEAM do you get any notification to say that you are application has been submitted?

Or do you get a text or anything like that?
 
When you apply for BEAM do you get any notification to say that you are application has been submitted?

Or do you get a text or anything like that?
Did it not say (on Agfood):
Little green tick and "The application has been submitted successfully"
 
It will be interesting to see the uptake on this, I don't know many who are not applying but I know a few who don't qualify as not in GLAS etc ... and what might be done with any underspend.
 
It will be interesting to see the uptake on this, I don't know many who are not applying but I know a few who don't qualify as not in GLAS etc ... and what might be done with any underspend.
Farmers with small numbers say ten or less probably won't apply as it really limits their future herd at 9 cows, hardly worth their while. Or maybe I'm reading it wrong. Not all suckler farmers would be killing cattle in the reference months either, some would be finishing them off on summer grass.
 
Farmers with small numbers say ten or less probably won't apply as it really limits their future herd at 9 cows, hardly worth their while. Or maybe I'm reading it wrong. Not all suckler farmers would be killing cattle in the reference months either, some would be finishing them off on summer grass.

But they can get €400 in a farm payment, cull a cow and keep a heifer to bring into the herd as an extra cow next year. There's not many suckler farmers making €400 on a cow, but there's an awful lot losing €400 per cow.
 
Have just done the applications for ourselves. It's a no brainer I think. There's just over €4000 in total and it will require a reduction of 4 cows or not fattening cull cows or finishing cattle earlier or selling weanlings earlier. No matter which way, it takes an awful lot of labour to make up €4000.
 
But they can get €400 in a farm payment, cull a cow and keep a heifer to bring into the herd as an extra cow next year. There's not many suckler farmers making €400 on a cow, but there's an awful lot losing €400 per cow.
Didn't realise you can cull a cow and replace like for like numbers but as heifers thr following year. Thought what ever number you reduced by you had to stay at that number for the foreseeable future?
 
Didn't realise you can cull a cow and replace like for like numbers but as heifers thr following year. Thought what ever number you reduced by you had to stay at that number for the foreseeable future?

As far as I understand, the rules dictate that you have to have a 5% reduction in bovine nitrogen in the perion of 01 July 2020 to 30 June 2021 compared with the period 01 July 2018 to 30 June 2019. So it's just for that 12 month period. There are no rules dictated as to how you achieve this reduction. A small bit of creativity on anyone's farm could achieve it and a lot of people could use it to become more efficient.
 
Have just done the applications for ourselves. It's a no brainer I think. There's just over €4000 in total and it will require a reduction of 4 cows or not fattening cull cows or finishing cattle earlier or selling weanlings earlier. No matter which way, it takes an awful lot of labour to make up €4000.
Depending on individuals situations if you and your wife are in paid jobs you might end up giving half of that €4000 back in tax...
 
Depending on individuals situations if you and your wife are in paid jobs you might end up giving half of that €4000 back in tax...

:lol::lol::lol::lol::lol::lol: The crippling fear of making a profit and having to pay tax on it!

Never let the fear that you may have to pay tax stop you from making money on your farm - there are so many other things stopping farmers making money. Even if it had potential to create a tax liability, there are plenty of things around our farm that need investing in which would negate any tax liability.
 
Am I being very cynical in thinking that this “1 year” might be used a reference year in the future.

Possibly but I don't think so I think it was either this year or last who knows ... isn't next year the last sfp of the last structure 2015 - 2020.. it has being said that this will continue onto 2021. If 2020 is the reference year can the department have all the sh*t together for the following yr I don't think so...
 
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