Headage payments for finished cattle under the beef carbon reduction (BCR) scheme were a contributing factor to higher prices paid for store cattle sold through 2024.

Irish Farmers Journal analysis of official weekly mart reports published by the Livestock and Meat Commission (LMC), shows that store cattle prices in 2024 were running close to 30p/kg above the 2023 average.

Good-quality store bullocks weighing 400kg to 500kg averaged 315.7p/kg last year, up from 284.4p/kg in 2023.

Applying that differential to a 500kg store animal equates to an additional £156 in sale value year on year.

For animals over 500kg, prices averaged 288.2p/kg last year, up 17p/kg on 2023 or £102 per head for a 600kg bullock.

Moving to store heifers, mart reports show prices averaged 318.2p/kg for animals weighing up to 450kg, which is an increase of 28p/kg from the 2023 average. The difference works out at £112 per head for a 400kg store.

Criteria

The BCR scheme payment was rolled out in 2024 as an incentive to reduce slaughter age of prime cattle, thereby lowering carbon emissions generated by livestock farming.

Payments were phased in incrementally, starting at £20 last January before rising to the maximum and current rate of £75 per head by April.

To be eligible, cattle had to be slaughtered under 30 months of age in 2024. Payment is issued to the farmer owning the animal for at least 60 days in the final 100 days prior to slaughter.

All BCR scheme payments on eligible cattle slaughtered in 2024 will be made in March 2025.

During 2025, maximum age at slaughter is reduced to 28 months, then 27 months in 2026 and 26 months in 2027.

Trade impact

Despite the time lag in BCR scheme payments, it has not deterred cattle finishers from passing on those future funds into the live trade.

However, it is not the only factor that has led to a rise in store cattle prices during 2024, with the increase in TB breakdowns in the last year, resulting in fewer cattle coming through mart rings – strong demand and tighter supply, drives prices upwards.

The rise in beef price during autumn 2024 has also had a major bearing on the live trade. However, over the course of the year, U3 beef prices were only 2.6%, or 12p/kg, above 2023 levels.

Ownership

The requirement that a farmer must own animals for 60 out of the final 100 days prior to slaughter to receive the BCR scheme money, has also seemingly had an impact on mart prices.

The LMC reports show finished bullocks sold in marts averaged 288.3p/kg in 2024, fractionally above the 287.8p/kg recorded in 2023. The differential across slaughter-fit heifers is just 1p/kg.

As these animals are generally processed before spending 60 days on farm, the final herd owner does not receive the £75 payment.

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