Hill farmers call for scheme to be re-instated to improve cash flow

Profitability remains a key issue on Northern Ireland's hill farms
Profitability remains a key issue on Northern Ireland's hill farms

Farmers in Northern Ireland have called for a scheme which protects the viability of farms in severely disadvantaged areas to be re-instated.

The Areas of Natural Constraint (ANC) scheme is seen as crucial in protecting the viability of farm businesses making a living off some of the most challenging landscapes in the country.

This year is the first where farmers will receive no ANC payment, following on from a number of years where payments were reduced.

Profitability remains a key issue on hill farms following a costly spring across Northern Ireland, but businesses in severely disadvantaged areas are feeling the pinch more acutely.

The Ulster Farmers’ Union (UFU) says replacing the ANC scheme is a priority. Hill farming chairman, John Kennedy said: “Cold weather and wet conditions have restricted grass growth and stock turnout, which has added costs.

“Sheep feed, such as meal, has risen over 15 per cent now costing up to £280 a tonne, and straw costing up to £180 a tonne, a 30 per cent increase on last year. Annual costs are increasing and this is why ANC payments are important for cash flow,” he said.

In addition to losing the ANC payment, many severely disadvantaged farm businesses have also lost income as a result of changes to the countryside management scheme (CMS).

However, the Environmental Farming Scheme, which replaced the CMS, has been criticised for being to bureaucratic and financially unattractive.

The UFU said the ANC payment must be reinstated or an alternative must be found to help farms remain profitable.

Mr Kennedy added: “It is an unfortunate reality that the market often does not deliver healthy margins for primary producers. The loss of the ANC payment has hit farms financially hard and has many questioning their viability.

“A potential knock-on effect is livestock numbers may reduce and we risk losing livestock grazing as an environmental management tool.”

Meanwhile, it has been over two years since Northern Ireland has had a functioning Executive and a government minister responsible for agricultural issues.