Pearse Doherty (Donegal South West, Sinn Fein)
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Question 474: To ask the Minister for Agriculture, Food and the Marine if he will consider increasing compensation amounts paid to farmers who receive compensation under the disease eradication scheme;if he will review the current on - farm market valuation scheme and take into account the fact that pedigree cows can sell for prices exceeding the levels paid under the current scheme; and if he will make a statement on the matter. [30503/12]

Simon Coveney (Cork South Central, Fine Gael)
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Under the existing arrangements, the main compensation scheme for farmers whose herds are affected by TB or Brucellosis is the On-Farm Market Valuation Scheme, which was introduced in 2002 following discussions between my Department and representatives from the farm organizations.

This scheme provides, in general, for compensation for cattle removed as reactors to be paid on the basis of "Market Value", which is the equivalent price that might reasonably have been obtained for the animal, at the time of determination of compensation, from a purchaser on the open market if the animal was not affected by TB or Brucellosis or was not being removed as part of depopulation under the disease eradication programme. However, the scheme also provides for a ceiling on payments in respect of any individual animal. These ceilings were reviewed in 2007 and were increased from €2,540 to €2,800 in respect of any single animal, except in the case of one pedigree stock bull per farm (breakdown episode), where the ceiling was increased from €3,175 to €3,500 . While it is accepted that some pedigree stock are valued above the ceiling rates, herdowners are advised to take out insurance cover against losses which may occur in the event that any of their animals with a value in excess of these ceilings becomes infected with disease.

I should also point out that, in addition to valuation payments, herdowners who experience a disease breakdown may also qualify for compensation under the Income Supplement, Hardship or Depopulation Grant Schemes, subject to the terms and conditions applying in each case.

I am satisfied that these compensation arrangements provide a very comprehensive range of financial supports to herdowners whose herds are restricted as a result of a TB breakdown in their herd.