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Brendan Smith urges higher TB compensation for depopulated cattle

Brendan Smith urges higher TB compensation for depopulated cattle

Deputy Brendan Smith called for increased compensation for cattle depopulated due to bovine TB, arguing current payments do not reflect real market prices. He pressed the TB Forum's financial working group to report without delay and to amend the market valuation scheme and payment caps.

Compensation concerns


He said the present compensation levels do not reflect reality and warned that many cattle now exceed the Department's maximum payments. He urged the minister to revise compensation levels upwards so depopulation payments more accurately reflect current market prices and to simplify the live valuation scheme.

Statutory caps and valuation rules


The transcript records the current ceilings under the market value scheme as €3,000 for most individual bovines, €4,000 for a stock bull and €5,000 for a pedigree stock bull in the same breakdown episode. The minister noted these caps are set under the Animal Health and Welfare Act 2013 and described valuations as carried out by independent valuers informed by summary market prices.

TB Forum and financial working group


Both Deputy Smith and the minister referenced the TB Forum and a dedicated financial working group established about 15-16 months ago to review the TB programme's financial model. The working group has met several times this year, with a meeting scheduled for 21 July, and its recommendations will be submitted to the TB Forum for consideration.

Valuation, grants and insurance


The minister outlined that depopulation grants may be paid per animal removed, subject to conditions, and that on-farm market valuation compensates up to the market value at the time of valuation. He also suggested herd owners with very valuable animals should consider insurance to recover full market value in the event of an outbreak.

Brendan Smith — clip from statement: Brendan Smith urges higher TB compensation for depopulated cattle (14.07.2022)

Cross-border cooperation and pedigree concerns


Deputy Smith stressed the importance of cross-border cooperation in tackling animal disease on an all-Ireland basis and expressed particular concern that compensation may be inadequate for valuable pedigree cattle. He urged stakeholders to work together, follow scientific advice and expedite financial reviews to reduce TB incidence and alleviate hardship for farm families.

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Transcript
As we all know, it is devastating for any individual farmer when his or her herd has to be partially depopulated or totally depopulated. We know that herds are built up over a considerable length of time. There is a big investment, there is a big commitment shown by the individual farmer. And we do not switch on or off breeding of herds or the development of herds. So the present compensation levels do not reflect reality. They do not reflect the prices that are paid in March today. So I would appeal to you, Minister, to have the compensation levels for cattle that are depopulated due to TB be revised upwards. Thank you, Alaskan Corla. Thank you very much, Deputy Smith, for raising this issue. And I know as somebody who is a strong advocate on behalf of Farmers and Euconistency and as a former Minister for Agriculture, this is an issue that you have advocated and worked on consistently over the last number of years. And I am very acutely aware myself, Deputy Smith, of the emotional and financial burden that comes with a TB breakdown for a farm family. And making significant progress in reducing TB incidence rates remains a key priority of mine and of the government's. The main compensation provision of the bovine TB program is on the on-farm market valuation scheme, which compensates eligible herd owners up to the market value of an individual animal, based on what it would have attained in the open market at the time of its valuation under the scheme. The valuations are carried out by independent valuers who are informed by summary market prices, which reflect the most up-to-date market values for various categories sold in the open market. In addition to the on-farm market valuation compensation package, depopulous grants may be paid to eligible herd owners whose herds are depopulated either totally or partially. This grant is paid per animal removed in the depopulation measure and for those removed as reactors since the holding was restricted, on condition that the herd owner agrees to the depopulation at the time specified by the Department. As part of the work of the TB Forum, a dedicated financial working group comprising representatives from my department and the farming organizations, was established 16 months ago to review the current financial model of the TB program. Their remit includes a review of the compensation schemes with respect to all types of bovine herds. Recommendations from the finance working group will be submitted to the TB Forum for consideration. The compensation rates for TB reactor animals are capped under the provisions of the Animal Health and Welfare Act of 2013, and herd owners in possession of very valuable animals should give careful consideration to mitigating their risks by taking out insurance as well, I would suggest, thereby enabling them to recover the full market value of such animals in the event of an outbreak of TB in their herd. By all of industry, Deputy Smith, working together, and I know this is something you would agree with, that we can achieve significant progress in reducing the scourge that TB is on our farming sector and for our farm families. Thank you. I thank the Minister for his reply. Minister, where you and I represent, we know the importance of cross-border cooperation, and I know that that continues and it is hugely important from the point of view of dealing with animal disease on an all-Ireland basis. I sincerely hope that that cooperation that has existed for many years works as robustly as it did in the past. Minister, you mentioned the TB Forum and the financial working group. I sincerely hope that they would report without further delay. You said it was established 15 months ago. Prices and costs and everything have changed dramatically in the meantime. Perhaps you would ask that working group to report to the Forum without further delay. Minister, the caps are outdated at the present time. You know from your knowledge of talking to farmers who are in the marts or have been in the marts yourself as well, that quite a number of cattle now are exceeding the maximum payment that the Department can pay in respect of the depopulation of an animal. That live valuation scheme needs to be amended. There is also need for simplification as well. So I sincerely hope, Minister, that you will amend the scheme to ensure that the true market value of the animals being depopulated, will be reflected in the compensation payment. Minister, I recently met with the TB Forum. I know the next meeting of the financial working group is 21 July. That will be attended by my own department and by the farming organisations. It has had five meetings this year already. So I do look forward to it completing its work. It was the TB Forum itself that was set up 16 months ago. I think it has a number of working groups underneath it. But it was really important to actually come together and work to the one strategy. I want to recognise the work of all key stakeholders. Because it is only by everyone working together and also by everyone recognising the importance of following the scientific advice here, that we can actually bring down TB rates and bring down the hardship that is involved for families and the cost impact that it has for them as well. The current animal ceilings under the market value scheme is €3,000 in respect of any individual bovine, except in the case of a stock bull, where the ceiling is €4,000, or a pedigree stock bull in the same breakdown episode, which is a ceiling of €5,000. But it is up to you to ask the working group to expedite their work. Minister, could I say what I have a concern about as well in regard to the compensation being inadequate for pedigree cattle. Now we all take great pride, those of us who are reared on farms and who represent rural communities. We take great pride in looking at quality animals and at our shows every year and visiting individual farmers as well. I have a concern that valuable pedigree lines could be lost, because I know of some individual farmers who win national awards every year, who would have quite a number of substantial pedigree herds. If they are unfortunate enough to have a partial or total depopulation, it is financial ruin for those people. So we need to address that particular matter. And Minister, again I want to emphasise, our farmers have built up quality herds over the years. We know that when there is disease comes into a herd, you have often heard the phrase, it is like a death in the family. Farmers take such pride in the work on their farm, in building up herds, in having quality produce that we all champion in this country. When we talk about the quality of our food that we export to so many countries throughout the world. But we need to ensure that the primary producer is adequate and compensated to meet all costs. Thank you, Alaska and Corda. Thank you for raising this issue this morning, Deputy Smith, and for your ongoing advocacy on behalf of the farming community. And certainly I have asked that all of the work to be completed as quickly as possible. And I know they are having a meeting at the end of this month. And I look forward to progress being made there. And I think overall we can take heart from the fact that by everyone working together and coming together in that TB Forum, and also by agreeing the new TB strategy that we are making progress. And we can make real progress here over the time ahead. But it is by coming together, working together that we can do that. And the financial aspects of that are important as well. And that finance working group is considering those in detail. And I know we will be coming forward with the report very soon. I look forward to that. Thank you. Thank you.