Farm chief warns of sheep tricks

Date: 21/06/01

AGRICULTURE chief Franz Fischler has admitted that sheep farmers may be engaging in a practice known as "bed and breakfasting" to maximise EU subsidies.

He was reacting to reports that some farmers have borrowed or bought sheep from neighbours after learning that they were due for a "headage" inspection - a compulsory check by national inspectors that farmers' livestock claims correspond to the number of sheep actually reared.

In a letter to UK Liberal Christopher Huhne, Fischler said it was clear that "abuses have occurred" in the way large numbers of sheep are moved around Britain and Ireland and that these need to be investigated further by the relevant authorities.

However, he said this did not necessarily mean the system of paying headage had resulted in any deliberately fraudulent claims. "It may occur that a farmer would buy or even lease sheep to make up the required number," he added, but they would still be eligible to claim ewe premiums provided they keep the additional livestock for a stipulated "retention period" lasting 100 days.

A 1992 EU regulation lays down that all member states are required to subject at least one-tenth of all claims to on-the-spot checks. "There is always the risk of fraud whenever subsidies are being paid," added the Commissioner. "In order to minimise the risk, it is a requirement under the control system that any prior notice of inspection visits should be limited to what is strictly necessary, for example in order for farmers to gather their animals. "

Agriculture chief Franz Fischler has admitted that sheep farmers may be engaging in a practice known as 'bed and breakfasting' to maximise EU subsidies. He was reacting to reports that some farmers have borrowed or bought sheep from neighbours after learning that they were due for a 'headage' inspection, a compulsory check by national inspectors that farmers' livestock claims correspond to the number of sheep actually reared.