While final figures detailing the number of eligible applications in the 2002 special beef premium will not be available until March, it is clear at this stage that the national quota of 1,028,153 will be exceeded significantly. This situation is the result of a rush of applications submitted to my Department in December 2002 in anticipation that 2002 would be a reference year for the purposes of the Commission's proposals for the mid-term review of the CAP. In the event, 2002 is one of the three reference years proposed by the Commission for the single farm payment with the calculation based on the average of the three reference years 2000, 2001 and 2002.
Provisional figures of applications for first age and bull premium of 2002 show that the quota was exceeded by 113,292 or 11.02%. This will be somewhat reduced as the premium is only paid on eligible animals. The final overshoot will not be known for some time yet.
It is clear that the Commission's proposed intention of using 2002 as one of the base years for establishing entitlement to de-coupled payments was a major factor in the huge number of applications submitted in late December. The number of first age animals and bulls applied for in December 2002 was 321,802 which amounted to 28% of all 2002 applications and shows an increase of 27% over December 2001 applications. Of more importance, however, was that three quarters of the December applications were received on or after 19 December. It is probable, therefore, that most of the producers who submitted applications for special beef premium in December did so on the basis that 2002 would be a reference year for the purposes of the proposed single direct payment.