Timmy Dooley (Clare, Fianna Fail)
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262. To ask the Minister for Agriculture, Food and the Marine why the compensation payments for reactor cattle from the suckler cow herd, is significantly below the market value and does not cover the replacement cost; and if he will make a statement on the matter. [17639/16]

Michael Creed (Cork North West, Fine Gael)
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The primary compensation scheme for farmers whose herds are affected by TB is the On-Farm Market Valuation Scheme. Under these arrangements, compensation is payable for cattle removed as reactors. This compensation is based on the market value of the animal i.e. the price that might reasonably have been obtained for it, from a purchaser on the open market if the animal had not been affected by TB. Where a breakdown occurs, the reactor is valued by an independent Valuer and my Department pays the difference between this valuation and the salvage value which the farmer receives from the slaughter plant. In order to ensure that reactors are valued uniformly across the country and on the basis of current market prices, my Department has issued assessment guidelines for all categories of stock to all valuers. In addition, my Department issues up-to-date summary prices to valuers on a weekly basis. Summary prices for non-breeding beef stock are based on prices collected by Department officials at 7 representative marts while summary prices for breeding stock, both pedigree and non-pedigree, are based on prices collected by Department officials at premier, dispersal, reduction and regional sales throughout the country.

In view of the foregoing, I am satisfied that, taking account of the payment from my Department and the price received by the herdowner from the slaughter plant, a farmer, at any given time, receives a level of compensation which adequately reflects the market valuation of reactors, including suckler cows, as if they were not affected by bovine TB.