The single largest funding heading in the Department of Agriculture’s annual TB spend is the On-Farm Market Valuation Scheme, with the scheme’s growing bill “due to strong market values and the rise in the number reactors", according to the latest report on TB trends published by the Department.
A new report from the Office of Comptroller and Auditor General – the State’s taxpayer spending watchdog – found that the cost of compensation to farmers has “significantly exceeded the budgeted amount” each year since 2020.
The actual Department spend when all of its TB receipts are added up on year-end – spending on all areas, not just farmer compensation - ranged from 17% to 76% more than had been initially estimated for spending in annual budgets since 2020.
The watchdog’s report noted that farmer TB compensation element of 2024’s spend was 136% higher than had been budgeted for, while the costs of testing and removing cattle were also “significantly over the budgeted amounts”.
“Other expenditure, including spending on wildlife culling and vaccination, was broadly in line with the budgeted sums,” the report states.
Reactor values
The rise in farmer compensation to €64m in 2024 out of a total spend of €100m came as the average compensation received per reactor hit its highest ever level of €1,536, an 11% increase on the previous year on foot of strengthening cattle prices.
The equivalent figure had stood just below the €900 mark in 2015 and exceeded €1,200/reactor for the first time in 2021 before falling the following year and climbing steadily each year since.
These increases have come despite calls from farming organisations for reactor valuation caps to be lifted in line with lifting cattle prices beyond their current limits of €3,000 for commercial cattle and €5,000 for pedigree cattle.
Where does the compensation go?
The breakdown of 2024’s €64m of TB compensation received by farmers was given as follows in the Office of Comptroller and Auditor General’s report:
The On-Farm Market Valuation Scheme that provides direct compensation for reactors received the lion’s share of overall compensation at 85%.The income supplement for those who lost 9.5% or more their herd in the one breakdown generated a further 11% of the compensation bill.The hardship grant paid to eligible herd owners for the costs associated with carrying over more cattle when restricted took another 3% of the compensation envelope.Depopulation grants for herds removing all or part of their herd under Department guidance represent the remaining 1% of the compensation bill.Compensation penalties
Farmers may be penalised on the amount receivable in compensation for reasons such as a breach of the terms of their herd movement restrictions or late herd tests.
Last year, these penalties totalled €47,000 across all herds, with nine out of every 10 of those who were docked funds deducted the minimum penalty of 5%.
Read more
Just under €70m spent on TB up to August
Spiralling TB costs could cost Department €180m next year
Budgets too tight to raise farmer TB compensation – Minister
TB compensation to be linked with herd-specific risk measures
The single largest funding heading in the Department of Agriculture’s annual TB spend is the On-Farm Market Valuation Scheme, with the scheme’s growing bill “due to strong market values and the rise in the number reactors", according to the latest report on TB trends published by the Department.
A new report from the Office of Comptroller and Auditor General – the State’s taxpayer spending watchdog – found that the cost of compensation to farmers has “significantly exceeded the budgeted amount” each year since 2020.
The actual Department spend when all of its TB receipts are added up on year-end – spending on all areas, not just farmer compensation - ranged from 17% to 76% more than had been initially estimated for spending in annual budgets since 2020.
The watchdog’s report noted that farmer TB compensation element of 2024’s spend was 136% higher than had been budgeted for, while the costs of testing and removing cattle were also “significantly over the budgeted amounts”.
“Other expenditure, including spending on wildlife culling and vaccination, was broadly in line with the budgeted sums,” the report states.
Reactor values
The rise in farmer compensation to €64m in 2024 out of a total spend of €100m came as the average compensation received per reactor hit its highest ever level of €1,536, an 11% increase on the previous year on foot of strengthening cattle prices.
The equivalent figure had stood just below the €900 mark in 2015 and exceeded €1,200/reactor for the first time in 2021 before falling the following year and climbing steadily each year since.
These increases have come despite calls from farming organisations for reactor valuation caps to be lifted in line with lifting cattle prices beyond their current limits of €3,000 for commercial cattle and €5,000 for pedigree cattle.
Where does the compensation go?
The breakdown of 2024’s €64m of TB compensation received by farmers was given as follows in the Office of Comptroller and Auditor General’s report:
The On-Farm Market Valuation Scheme that provides direct compensation for reactors received the lion’s share of overall compensation at 85%.The income supplement for those who lost 9.5% or more their herd in the one breakdown generated a further 11% of the compensation bill.The hardship grant paid to eligible herd owners for the costs associated with carrying over more cattle when restricted took another 3% of the compensation envelope.Depopulation grants for herds removing all or part of their herd under Department guidance represent the remaining 1% of the compensation bill.Compensation penalties
Farmers may be penalised on the amount receivable in compensation for reasons such as a breach of the terms of their herd movement restrictions or late herd tests.
Last year, these penalties totalled €47,000 across all herds, with nine out of every 10 of those who were docked funds deducted the minimum penalty of 5%.
Read more
Just under €70m spent on TB up to August
Spiralling TB costs could cost Department €180m next year
Budgets too tight to raise farmer TB compensation – Minister
TB compensation to be linked with herd-specific risk measures
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