British Wool has introduced a new scheme designed to support producers who have recently entered the industry.
Launching for the 2018 season, the scheme will see eligible producers receive 100% of their clip value as an upfront payment for their first two years, along with a priority wool in-take and grading service through British Wool’s nationwide depot network.
Producers will then transition on to the standard payment scheme over the next three years by way of adjusted balancing payments so that, over the life of the 5 year scheme, new entrants receive the same cash as they would have done had they been on the standard payment scheme throughout that period.
British Wool CEO Joe Farren said investing in the future of the industry is an "essential part" of encouraging young farmers into it.
“Any start up business requires support to be successful, so increased up-front payments during the first two years will help ease the pressure on cash flow,” Mr Farren said.
“Through this initiative we hope to appeal to young farmers’ to market their wool through us, and thus safeguard the long term future of British Wool for the benefit of all our members. Eligible producers will be paid exactly the same prices as all our producers. This is purely an early years’ cash flow support scheme.”
Eligible new entrants will receive their wool payments as follows:
• Year 1 – the advance payment will be set to 100% of the prior year’s clip value.
• Year 2 – the advance payment will be set to 100% of the prior year’s clip value plus / minus any balance from the previous year.
• Year 3 – the advance payment will be set to 75% of the prior year’s clip value plus / minus any balance from the previous year.
• Year 4 – the advance payment will be set to 50% of the prior year’s clip value plus / minus any balance from the previous year.
• Year 5 onwards – the advance payment will be set to 25% of the prior year’s clip value plus / minus any balance from the previous year.
• Year 6 onwards – payments will be in line with all other British Wool registered producers.
