Schedule of Terms and Conditions of the Bovine Eradication Schemes available to herdowners whose holdings are restricted with TB and/or Brucellosis

The operation of these schemes are subject to the provisions of Commission Regulation (EU) No 702/2014 of 25 June 2014 and in particular Chapter III, Section 1 (Article 26), the Animal Health and Welfare Act (No15 of 2013), the Animal Health and Welfare (Bovine Tuberculosis) Regulations 2015(S.I. No 58 of 2015) as updated and the Central Fund (Permanent Provision) Act, 1965. Unless otherwise stated, terms defined in the Regulation shall have the same meaning in these Schemes.

1. Compensation

Compensation is paid to farmers who suffer a TB or Brucellosis breakdown provided they comply with (i) the rules governing the Disease Eradication Schemes, (ii) the national/EU legislative requirements and (iii) the controls administered by the Department of Agriculture Food and the Marine(DAFM) relating to bovine animals.

The Disease Eradication Compensation Schemes are as follows:

1.  On-Farm Market Valuation Scheme for reactors removed

2.  Income Supplement Scheme

3.  Depopulation Grant Scheme

4.  Hardship Grant Scheme.

The eligibility conditions under each Scheme are set out below.

1.1 On Farm Market Valuation Scheme

This scheme is designed to compensate stable herdowners for the loss of animals removed under the eradication programme as legislated for under the legislation referenced above/ as updated.

In line with the above the Minister may pay compensation, the amount of which is to be determined by way of an assessment carried out by a valuer or an arbitrator, in accordance with any guidelines set. Compensation shall not exceed the open market value of an animal, animal product, animal feed or other thing before its killing or natural death or destruction (less any salvage value or payment under a policy of insurance in respect of it) as if the disease did not exist. Payments made will also take account of any ceiling limits set by the Minister under the scheme.

Compensation shall not be applied for or payable, if an applicant has already applied for or received payment for the same farm animal, animal product, animal feed or other thing relating to a farm animal under another enactment or regulations made under the European Communities Act 1972.

An application for compensation shall be in such form and contain such information as the Minister may determine.

The main features of the live valuation system include:

1.  Valuations are carried out by suitably qualified valuers, within prescribed timescales, on the basis of current market values and by reference to guidelines drawn up by Department staff. There is also provision within the scheme for an appeal process where either party rejects the valuation.

2.  Graduated penalties may be applied to the final compensation payment made to the owner/keeper where s/he unreasonably delays the removal of reactors as well as for other breaches of regulations.

3.  A ceiling of €3,000 will apply to payments in respect of any individual bovine reactor animal removed with an exception of (i) one stock bull per breakdown episode where a ceiling of €4,000 will apply or (ii) a ceiling of €5,000 for one pedigree stock bull where removed during the same breakdown episode. Amounts payable, being market value or ceiling limits, are inclusive of factory salvage value paid by the factory and are inclusive of amounts the herdowner may receive from private insurance for bovine animals removed as reactor.

4.  Valuation payments will not be paid in respect of any introduced animal deemed reactor. Certain exceptions apply where permission has been given in the case of:

(i) a replacement stock bull(s); (ii) emergency replacement suckler calf; (iii) animals moved in to a newly established herd; (iv) movement of animals into a herd contiguous to a High risk breakdown suspended pending test (specific time constraints apply); (v) cases where approval has been given for movement home to a restricted herd of a farmers own test negative animals (welfare cases).

Failure by the owner/keeper to co-operate with Veterinary Inspectors or Authorised Officers in carrying out their duties under the Diseases Eradication Schemes may result in reduced valuation amount paid.

1.2 Depopulation Grant

An owner/keeper whose herd is depopulated (totally or partially) in the interest of disease control may qualify for a Depopulation Grant, which is designed to compensate farmers for income lost during the rest period. Depopulation Grants are paid for each animal removed in the depopulation measure and for those removed as reactors since the holding was restricted, on condition that the owner/keeper agrees to depopulation at the time specified by the Regional Veterinary Office (RVO). Movement of any animals into a restricted herd is prohibited except with the written permission of the RVO. Depopulation grants are not generally payable on animals moved onto the holding during the restriction period if these animals are subsequently deemed reactors although some exceptions to this rule may apply. Depopulation Grants are paid in respect of each month of the rest period specified by the RVO.

The Depopulation Grant rates are as follows:

Herd Type / Animal Type / Stable Herds
Rate
(€) / Herds operating as Feedlot (ER37F activated)
Dealer Herds
Dairy Herd / *Cows /In-Calf Heifers /Pedigree Bulls > 12 months / 220.00(55.00 per month) / Nil
Suckler Herd / Cows / In-Calf Heifers/Pedigree Bulls>12 months / 152.36(38.09 per month) / Nil
All Herd Types / All Other Animals / 76.16(19.04 per month) / Nil

Note:

Depopulation Grant rates quoted above represent the maximum available in respect of a 4 month rest period following depopulation. Pro rata deductions may be made if the rest period after depopulation is less than 4 months.

*Where an ER83 declaring beef breed cows in a Dairy Herd has been received the Suckler Cow rate will apply should any of the cows listed be removed as a reactor.

1.3 Income Supplement

Income Supplement is payable in cases where disease breakdown results in the removal of more than 10% of animals in a herd during the same restriction period and where depopulation is not deemed appropriate. Payment is in respect of each animal removed as a reactor from a herd with some exceptions applying. Specific criteria regarding the application of the above will apply.

In the case of Dairy Herds, Income Supplement will be considered where at least 10% of cows are removed during the same restriction period. Payment, where applicable, will be in respect of dairy cows only i.e. animals that were dairy cows at the time of the breakdown test. Specific criteria regarding the application of this scheme will also apply. Herdowners who qualify under the dairy cow scheme but subsequently go on to meet the criteria where more than 10% of the herd have been removed will then be considered for payment on all the eligible reactors, taking account of scheme criteria and retaining the monthly eligibility date.

A herdowner will not be eligible for payment of Income Supplement with effect from the date cattle are moved into a restricted herd (following one clear test) for the remainder of the restriction period. Some exceptions to this rule may apply but are subject to the RVO having given permission to move the animals into the restricted herd.

Income Supplement eligibility will also cease in the event of:

a.  The owner/keeper failing to co-operate with Veterinary Inspectors or Authorised Officers in carrying out their duties under the Diseases Eradication Schemes, including substantial delays in testing, or may have payments withheld in part/full as deemed appropriate.

b.  Depopulation (total or partial) of the herd being deemed appropriate by the Department.

c.  De-restriction of the holding.

The Income Supplement Monthly rates are as follows:

Herd Type / Animal type / Stable Herds / Herds operating as Feedlot (ER37F activated)
and
Dealer Herds
Rate
(€) / Rate
(€)
Dairy Herd / *Cows in a Dairy herd / 55.00 / Nil
Suckler Herds / Cows in a Suckler herd / 38.09 / Nil
All Herd Types / (i)  All other Animals / 25.39 / Nil

Also Note:

Specific conditions attach to the qualification for and cessation of Income Supplement payment. In particular, payment is in respect of whole months in arrears and subject to payment eligibility date and, accordingly, when eligibility ceases, a pro rata payment will not issue in respect of any remaining part month. Note also that payment may not be made where the herd owner fails to have the Reactor Re-test carried out within the specified time.

*Where an ER83 declaring beef breed cows in a Dairy Herd has been received the Suckler Cow rate will apply should any of the cows listed be removed as a reactor.

1.4 Hardship Grant

The Hardship Grant eligibility period runs from 1 November to 30 April. This Scheme is designed to alleviate the additional feed costs incurred by some owner/keepers whose holdings are restricted on foot of a herd retest and where animals are retained and fed during periods of restriction. Potentially eligible owner/keepers must meet certain conditions including requirements that they must not have any offfarm income.

The Grant may provide eligible owner/keepers with a payment of up €250.00 per month for a period not exceeding 4 months within the period 1 November to 30 April of the following year.

1.5 Main overall terms and conditions of Disease Eradication Compensation Schemes

1.  The Department’s Booklet Compensation arrangements for TB and Brucellosis “Important Information for the Owner/Keeper” provides useful information in relation to the valuation arrangements, Income Supplement and Depopulation Grant eligibility requirements, rates payable, etc.

2.  Entitlement to the payment of compensation is conditional on compliance with the provisions of the Animal Health and Welfare Act (No15 of 2013), the Animal Health and Welfare (Bovine Tuberculosis) Regulations 2015 (S.I. No 58 of 2015) and any other relevant orders made under it. With regard to Animal Remedies legislation, with testing, movement, identification, bio security and other controls laid down under the Disease Eradication Schemes including the legal requirement not to treat cattle prior to testing unless urgently required and other national/EU legislative requirements and controls relating to bovine animals administered by the Minister for Agriculture, Food and the Marine.

3.  The Minister may refuse payment of compensation, in whole or in part, where a owner/keeper does not satisfy the aforementioned provisions or where the Minister is satisfied that the owner/keeper has failed to co-operate with Authorised Officers or Veterinary Inspectors of the Department in carrying out their duties under the Schemes.

4.  A Tax Clearance Certificate is required if compensation payment exceed €10,000 in a 12 month period.

5.  In accordance with the payment targets agreed on Direct Payments to Farmers under the Charter of Rights for Farmers, payment of TB and Brucellosis, compensation will normally be made within 2-3 weeks of the date of receipt of the required back-up documentation from the owner/keeper and the meat plant. The required back up documentation for valuation payment is detailed in the Booklet “Compensation arrangements for TB and Brucellosis – Important Information for Farmers”.

6.  The Department will pay compensation, as processed by the Regional Veterinary Offices (RVOs), in accordance with the provisions of the compensation regime. Appeal mechanisms with regard to penalties applied to /or compensation payments withheld in full / other general information are detailed in the booklet “Compensation arrangements for TB and Brucellosis – Important Information for Farmers”.

7.  Compensation received by farmers from the ERAD compensation scheme and under an insurance policy may not exceed the actual losses incurred.

8.  The compensation arrangements and rates are adjusted from time to time in consultation with the farm organisations.

9.  Expenditure on compensation schemes under the TB and Brucellosis Eradication Schemes is subject to inspection checks or audit, from time to time, by officials of DAFM, Office of the Comptroller and Auditor General and the European Commission.

10.  If any of the terms and conditions are found not to have been fully met, repayment of all or any part of the grant may be required, as deemed reasonable and appropriate by the Department.

2.0 Aid in accordance with Commission Regulation (EU) No. 702/2014

1.  Under EU Regulation 702/2014, eligible herdowners who are defined as SME’s under the Regulation, whose holdings are restricted as a result of *reactor animals being identified in the herd and where other animals are retained and fed during this restriction are eligible to apply under this scheme.

2.  Aid granted under Article 26 of Commission Regulation (EU) No. 702/2014 must abide by the conditions set out in paragraphs 2 to 13:

3.  Aid shall only be paid: [para 2]

(a) in relation to animal diseases or plant pests for which Union or national rules exist, whether laid down by law, regulation or administrative action; and

(b) as part of:

(i) a public programme at Union, national or regional level for the prevention, control or eradication of the animal disease or the plant pest concerned; or

(ii) emergency measure imposed by competent authority; or

(iii) measures to eradicate or contain a plant pest implemented in accordance with Council Directive 2000/29/EC

4.  The programme and measures referred to in point (b) shall contain a description of the prevention, control or eradication measures concerned.

5.  The aid shall not relate to measures in respect of which Union legislation provides that the cost of such measures is to be borne by the beneficiary, unless the cost of such measures is entirely offset by compulsory charges on the beneficiaries. [para 3]

6.  As regards animal diseases, the aid shall only be granted in respect of animal diseases referred to in the list of animal diseases established by the World Organisation for Animal Health or the animal diseases and zoonoses listed in Annexes I and II to Regulation (EU) No YYY/2014 of the European Parliament and of the Council (1).[para 4]

7.  Aid shall be paid directly to the undertaking concerned or to a producer group or organisation of which that undertaking is a member. Where the aid is paid to a producer group or organisation, the amount of aid shall not exceed the amount of aid to which that undertaking is eligible. [Para 5]