Since April 2016 the arrangements for paying compensation for cattle slaughtered because of TB has change to encourage cattle keepers to follow best practice. In most cases, full compensation will be paid but if the rules have not been followed the amount of compensation may be reduced.

How is compensation calculated?

The value of an animal slaughtered for TB is calculated using the following formula:

if SV < (M x MV) then C = (M x MV), otherwise C = SV

SV is the salvage value of the animal, M is the multiplier, MV is the valuation of the animal and C is the amount of compensation paid.

The result of this is:

  • the minimum amount of compensation paid will be the salvage value
  • the market value of the animal will be paid when this is greater than the salvage value
  • where there has been a breach of the TB Order a multiplier, which will range between 0.75 and 0.05, will be used on the market value.

 Some examples of the compensation paid as a result of different multipliers are provided in the table below:

 Market value

Salvage value

Multiplier

Compensation

£1,500

£500

1

£1,500

£1,500

£500

0.75

£1,125

£1,500

£500

0.5

£750

£1,500

£500

0.25

£500

£1,500

£500

0.05

£500

As well as this the most amount of compensation Welsh Government will pay for an animal is £15,000 and £1 will be the lowest.

How will cattle be valued?

Welsh Government will appoint a valuer to determine the market value of the animal. You can reject the appointment if there is a personal or business conflict of interest. In these circumstances an independently nominated valuer will be appointed, as was the case under the previous system. You can provide any necessary information/evidence to the valuer for it to be taken in to consideration when coming to its value

When will compensation be reduced?

Welsh Government will reduce compensation in circumstances where they are satisfied, on a balance of probabilities, that the rules that are laid out in the TB Order have been broken. A list of the circumstances, in which the animal’s owner may receive less than the market value for the animal, is below.

It is also an offence to break the rules set out in the TB Order and farmers who fail to comply with the requirements of the Order may be prosecuted by the Local Authority using the ‘beyond reasonable doubt’ standard of evidence.

Can I appeal?

You will be able to appeal the decision to reduce compensation but not the value determined by the valuer.

 

Circumstances where a multiplier will be less than 1  Multiplier applied 
Non-compliance with an isolation notice or other notice under Article 10(3)  0.5
Unpasteurised milk from a suspected animal has been fed to calves or other mammals  0.05
Unlicensed move of a restricted animal  0.05
Veterinary Requirements Notice: 1st breach  0.5
Veterinary Requirements Notice: subsequent breach  0.05
Biosecurity Improvement Notice: 1st breach  0.5
Biosecurity Improvement Notice: subsequent breach  0.05
Failing to comply with a notice restricting the storing, spreading or movement of manure or slurry  0.75
Non-compliance with an other notice under Article 18(1) i.e. isolation notice or cleansing & disinfection notice: 1st breach  0.5
Non-compliance with an other notice under Article 18(1) i.e. isolation notice or cleansing & disinfection notice: subsequent breach  0.05
Failure to test an animal (interval between the specified test date and the test is): More than 60 days but not more than 90 days  0.5
Failure to test an animal (interval between the specified test date and the test is): More than 90 days  0.05

Animals brought into a restricted herd

There is a need for cattle to be moved onto a restricted farm for a number of reasons such as the welfare of the animal, to fulfil a contract and for breeding. In these circumstances Welsh Government may licence a farmer to bring an animal into a herd but, in the event that the animal is then slaughtered because of TB before the herd becomes TB free, the compensation for that animal will be reduced. This allows the farmer to restock but means they also share the financial risk of bringing healthy cattle into a herd with a known TB problem.

Cattle are not be allowed to move into a restricted herd before the first short interval test because there is a high risk this could lead to more animals becoming infected and prolonging the breakdown.

Approved Units

If the conditions of tapproving an EFU or an AFU are not followed, compensation will be reduced for any animal slaughtered because of TB.

Approved Finishing Unit (AFU) – a unit that can take clear tested cattle from restricted herds

Exempt Finishing Unit (EFU) – a unit to cattle from TB-free farms, without them having a pre-movement test.

Delayed removal

It is important that diseased animals are removed from the breakdown farm as quickly as possible after they have been identified as reactors. Welsh Government will reduce compensation when a herd owner has not cooperated with the removal of an animal to be slaughtered and, because of this, the removal has been delayed for longer than 10 working days.

Compensation will not be reduced where the 10 day target has been missed through circumstances outside of the control of the farmer.

Recovery of costs and payments

The TB Order allows Welsh Government to recover their costs, such as the cost of equipment and/or staff, where whey have carried out a TB test because the farmer has failed to have an animal tested. They are also able to recover costs:

  • where the farmer has failed to allow a reactor animal to be valued
  • where a farmer fails to allow am reactor animal to be removed.

They can also delay compensation payments or offset them against future compensation payments.