Seymour Crawford (Cavan-Monaghan, Fine Gael)
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Question 487: To ask the Minister for Agriculture and Food when the compensation allowed for pure bred tuberculosis cattle will be changed to take account of what they are really worth; when the income allowance will be adjusted to compensate for real loss of income; if her attention has been drawn to the fact that current payments are forcing farmers out of business; and if she will make a statement on the matter. [6304/06]

Mary Coughlan (Donegal South West, Fianna Fail)
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The on-farm market valuation scheme, which involves live valuation of reactor animals on the holding before their removal for slaughter, was introduced in 2002 under the Programme for Prosperity and Fairness and following discussions between my Department and representatives from the farm organisations. Under these arrangements, farmers receive compensation for cattle removed as reactors based on the price which might reasonably have been obtained for the animals in an open market if they were not affected by TB or brucellosis or were not being removed as part of a depopulation under the disease eradication programme.

However, one of the features of the system agreed was the inclusion of a ceiling of €2,540 on payments in respect of any single animal, except in the case of one pedigree stock bull per farm where a ceiling of €3,175 applies. While it is accepted that some pedigree stock are valued above these rates, it is open to farmers with such stock to secure insurance cover for these cattle and farmers are strongly advised to do so.

I should also point out that, in addition to valuation payments, herdowners who experience a disease breakdown may qualify for compensation under the income supplement, hardship or depopulation grant schemes, subject to the conditions and the circumstances applying in each case. Payments under these schemes amounted to €4.6 million in 2005.

I am satisfied that the overall compensation arrangements, which are kept under ongoing review by my Department, are working well. I have no plans at present to review them.