The Irish Farmers' Association president is demanding that farmers in the Cooley peninsula be paid ewe premiums on their full quota over the next four years to allow for gradual restocking.
Mr Tom Parlon added that compensation payments should not be subject to income tax and producers should be given roll-over relief for four years to use the resources to restock fully.
The demand was made following a visit to the area by Mr Parlon, who said the IFA was seeking fair compensation of £200 per ewe for farmers who had lost their stock.
Farmers in the area were paid between £120 and £190 per ewe when the Cooley flock was slaughtered to prevent the spread of foot-and-mouth disease from Proleek, the site of the State's only case of the disease.
Mr Parlon described the restocking of some farms in the Cooley peninsula last week as "hype and little more than window-dressing" and said it avoided dealing with the serious economic and social fallout from the destocking last March.
He said lamb prices had reached record levels of £1.70 to £1.90 per lb, but Cooley farmers had no lambs to sell.
He said Teagasc had made it clear to the Government that it would take four years to restock sheep flocks in the Cooley area.
"There is a real sense among the farmers that the sacrifice they made in the foot-and-mouth crisis is now being ignored by the Government," said Mr Parlon.
All producers should be allowed to start restocking immediately on a planned and phased basis with a schedule set down by the District Veterinary Offices.
The IFA also wants Rural Environment Protection Scheme payments to continue while new plans are drawn up or existing ones revised and all payments for milk, destroyed during the crisis, to be made.
Mr Parlon also said there should be a speedy and amicable resolution to the common-age problem in the area.
A group led by a former IFA activist, Mr John Elmore, has demanded higher levels of compensation for the sheep farmers in the area and may mount a legal challenge to the levels of compensation paid.
A Cooley dairy farmer, Mr Eugene Oliver, of Castlecarragh, Riverstown, Dundalk, was named Glanbia Milk Supplier of the Year yesterday by the Minister for Agriculture, Mr Walsh.