Farmers to receive £70m for BSE losses

IRISH farmers are to receive a total of £70 million in income compensation payments this year for losses due to BSE. The Minister for Agriculture, Mr Yates, has hailed the result as a "considerable success" and pledged to continue the fight for further compensation into next year budget.

The deal which was negotiated yesterday, also provides for a continuation of the threatened "deseasonalisation" premium (DSP) paid exclusively to Irish farmers, North and South. Worth some £16 million to the Republic's farmers last year, it is paid to encourage an even volume of production throughout, the year.

The result, possible because the Florence summit added £160 million to compensation proposed by the Commission, pushes the one off payment to those who received premium payments last year to £19.09 a head for the special beef premium, and to £22.41 a head for suckler cows.

In addition, member states, receive "national envelope" payments totalling £215 million, in Ireland's case, £13.28 million.

Mr Yates said yesterday he hoped to use the cash to help winter finishers and, for the first time, heifer producers. He would be topping up the DSP payment by £50 a head from March 20th to June 8th, payable on some 153,000 steers, and pay the balance to heifer producers. All farmers should receive payments by mid October.

The result for a typical medium sized farmer, the bulk of Ireland's 100,000 beef producers, would be about £1,600. But the compensation package is even more important for the 2,000 to 3,000 winter finishers, who play an important role in the Irish beef economy and have particularly suffered from the BSE crisis.

Typically such a winter finisher might fatten some 600 head, entitling him to compensation in this case of £50 a head in DSP, and an additional £19 a head on top of the beef premium where this is payable, a total compensation package of £30,000 and £42,000.

The total value of the EU package is £680 million, and with 7 per cent of the receives nearly 10 per cent, almost twice the average level of compensation.

The president of the Irish Farmers' Association, Mr John Donnelly, criticised the compensation package as falling short what was required by Irish producers. He said the could have got more he played his cards right.

The ICMSA also gave the Luxembourg package a "guarded welcome". Its president, Mr Frank Allen, said the £70 million was well below the £200 million he claims Irish beef producers have lost. The IFA estimate the losses in the region of £155 million £230 million.

However, these figures are contested by the Department of Agriculture which says farmers; I cannot expect further compensation for pre BSE crisis losses.

Mr Allen said the Minister must now use his position as incoming president of the Council to negotiate a fresh compensation deal to take account of the massive losses which will be incurred by farmers when the peak slaughter season starts in the autumn.