EC approves farm compensation

Four countries have been granted compensation for foot-and-mouth

The European Commission (EC) is to give the UK £225m in compensation for the foot-and-mouth crisis, with more money expected to follow.

The payout comes as a first instalment, while the EC continues to assess the financial cost to European farmers following the devastating outbreak of the disease.

The Netherlands, France and the Republic of Ireland will all receive smaller payments, but not surprisingly the lion's share will go to Britain, which was hardest-hit by the crisis.

Under EU farming policy, the commission has to pick up 60% of the cost of an epidemic where whole herds have had to be destroyed.

The Netherlands is to get £25m, with France and Ireland each receiving £2m.

The EC has another £400m in its coffers for more foot-and-mouth payments, but these will not be released until officials have completed their inspection of farm sites in member states.

Farm allegations

Last week the EC's anti-fraud office said it was maintaining a "close watch" on the system of compensating UK farmers.

The move followed a report by the EU's Food and Veterinary Office which branded the UK's compensation system as "excessive".

The critical EU report highlighted payments that were significantly higher than the guideline rates.

It questioned the procedure of allowing farmers to choose their own valuer from a ministry list.

Inspectors also attacked illegal animal movements and suggested there had been deliberate infection.

But the UK Government said there was no evidence to support the allegations.

Farmers said they were the "victims" of campaigners against their industry.