The Costly Flaw in Ireland’s Dairy Compensation

The compensation ceilings, last updated in February 2023, fail to reflect current market conditions, leading to financial losses for farmers whose cattle are culled. Specifically, the cap for a pedigree cow's compensation is €5,000, which is significantly below the market value of some animals in 2025. This discrepancy imposes an unfair financial burden on farmers, as they are not fully compensated for their losses after an independent valuator's assessment.

This issue not only highlights the disconnect between governmental policy and real-world economic conditions but also poses a threat to the agribusiness sector's viability. The Department of Agriculture, Food and the Marine (DAFM) subtracts the salvage value from the animal's worth before paying the remainder, constrained by the outdated ceiling. While the DAFM aims to reduce TB levels to decrease program costs—exceeding €100 million in 2024—the current compensation framework is inhibiting fair reimbursement for farmers and endangering the sustainability of the food supply chain.