BEEF producers may face a significant scale-back on this year's Beef Special Premium Scheme balance payments, due next spring or early summer.

David Maughan, who farms near Darlington and is a member of the NFU's regional livestock board, believes they could face a scale-back greater than the 6.5pc applied in 2003.

"Producers are likely to use the forward dating of claims allowed under BSPS rules to maximise their payments for the last year of the scheme," he said. "Although always available under the scheme rules, the take-up in December this year is likely to be considerable compared with previous years."

This year's payment, before any scale-back, is expected to provide about £147 per bull and £105 per steer, minus 3.5pc "modulation" deductions. The payment is made in two instalments: 60pc from October 16 if animals have completed retention, and the rest next spring.

Mr Maughan said the board felt it was inevitable payments would be less than expected and producers should be prepared for that.

"However, we are particularly pleased with the amount of payments made in the first few days of the payment window by the RPA of all of the beef and sheep schemes," he said.