SINGLE farm payments must continue if British beef farmers are to survive.

Europe is considering a reform of the Common Agricultural Policy (CAP) from 2013.

Caroline Spelman, Environment Secretary, wants an end to direct farm payments with farmers rewarded more for their environmental efforts.

But the National Beef Association (NBA) has warned that beef farmers need the single farm payments (SFPs) to protect them from the grip supermarkets have on retail food prices.

It is deeply alarmed at the “yawning chasm” between the real cost of rearing and finishing beef cattle and the inadequate returns producers receive when they are sold to food processors.

Oisin Murnion, NBA chairman, said the market income was 25pc to 30pc below what beef farmers need to earn a genuine profit.

Without the SFP, the UK would have lost its suckler beef cattle herd some time ago.

Taxpayers and Government ministers often complained about the cost of CAP structures – often inferring that farmers who regard the continuation of them as a financial lifeline are undeserving.

However, Mr Murnion said: “The naked, incontrovertible truth is that without a continuation of direct SFP support, the UK’s beef production would take a death dive, unless, of course, the supermarkets dropped their policy of selling underpriced beef, that is subsidised by the taxpayer, and retail it at prices that allow finishers to be paid at least 400p a deadweight kilo instead.”

Tax payers had two choices – either underwrite beef production and its value to the environment through CAP payments or pay more when they shop.

“Farmers would prefer the latter because it would allow them to cover their costs and secure a reasonable standard of living, but the supermarkets prevent this through their resolute refusal to retail beef at prices that come anywhere near the level they should be,” said Mr Murnion.

“This means adequate SFP cover in the post-2013 period is essential for the continued delivery of home-produced suckler beef into the national retail system.”

He said it should also be accepted that maintaining the size of the national beef herd was hugely important to the environment as, without cattle, there would be nationwide scrub encroachment, loss of wildlife habitats and key rural communities.

“This in itself is justification for the continuation of direct CAP payments, but preservation of both habitats, landscape, and communities, could also be assured if the multiples sold the beef on their shelves for much more money than they are prepared to do at present,”

said Mr Murnion.