My Department is in contact with the European Commission in regard to the cutback to be applied to the special beef premium arising from the overshoot of the national ceiling on payments. No decision has yet been made on how the cutback will be applied, that is, whether the rate of premium will be cut or the number of animals per farmer will be reduced.
Irrespective of which method is used, the same rate of cutback as is applied to the special beef premium payments will also have to be applied to any extensification premium payments due on those animals to respect EU regulations. Accordingly, it makes no difference from an extensification premium point of view whether the rate of special beef premium is cut or the number of animals is reduced as a corresponding decrease will apply to extensification premium payments