Farmers' fury over compensation rates

Standard rates varied from £32 to £150 for sheep

Farmers have reacted angrily to the government's decision that standard rates of compensation for farms affected by foot-and-mouth disease are to be scrapped.

From now on, an independent valuer will decide how much farmers get per animal culled based on market prices.

The Department for Environment, Food and Rural Affairs (Defra) stressed that, under the new rules, owners had the right to dispute valuations within 14 days and seek arbitration.

But farmers' leaders said it was unfair to change the rules while the outbreak continued.

The rate had the effect of putting in place minimum prices, which is not the normal practice in the livestock sector

Elliot Morley
Animal Health Minister

In an industry where the average income is £5,200, the average compensation payout has been £116,000.

Farmers have been able to choose whether to accept the standard rates, which varied from £32 to £150 for sheep, £18 to £520 for pigs and £500 to £1,100 for cattle, or ask for their animals to be separately assessed.

The government, which has so far awarded farmers £936m in compensation, said only 10% had chosen the standard rates - but the National Farmers' Union put the proportion at 20%.

But the government was concerned that the scheme encouraged valuers to set prices above the standard rates.

The Animal Health Minister, Elliot Morley, said: "The rates were set generously at a time when new cases were being reported at an average of 40 a day to encourage farmers to come forward and speed up the cull which was vital to bear down on the disease."

Slaughter targets

"The rate had the effect of putting in place minimum prices, which is not the normal practice in the livestock sector."

But the NFU deputy president, Tim Bennett, said: "The NFU believes strongly that every farmer should be treated equally and no one placed in a disadvantaged position when they go to bid for replacement livestock.

"There are still up to 42,000 animals being slaughtered every week so it remains crucial that the valuation process is carried out quickly so that the government meets its slaughter targets."

He added: "The NFU's priority remains the eradication of foot-and-mouth disease.

"This should be the government's priority too."