Farmers taking second look at validity of cattle insurance
Most cattle farmers don't know of anyone who ever made a successful claim on the insurance, and the premium paid on every animal sent to factories is now coming under intense scrutiny, as farmers anticipate huge hikes in factory bills for rendering and BSE testing, as well as the doubling of a disease levy to €5 per head of cattle.
The Limerick IFA County Executive has unanimously endorsed a call from farmers in the county for the Association's National Livestock Committee and National Council to undertake an investigation into the amount being paid by livestock farmers in insurance premiums collected at point of slaughter, and a breakdown on what becomes of the money.
Donal Danagher told a meeting of the executive at Adare, Co Limerick that farmers regarded this as an added charge for which they saw no return and they were entitled to get an account of what happens to the money.
"Someone must be making a lot of money out of this and we are entitled to be told where the money is going and if we are getting any return for it. I believe that the amount being paid out to us is very, very low, because it does not apply to any animal that appears to be a risk".
"You cannot get insurance on a fallen animal at any of the factories, or on any cow that looks doubtful", he said.
"What I want the IFA to investigate is the amount that is being collected on premiums and who is getting the profit".
"It is adding to the cost of killing an animal at the factory and the amount that is being deducted from cattle going into factories has become intolerable".
Mr Danagher said that he was not aware of anyone who had got money back under this insurance scheme.
The insurance premium is €1.90 per head on cattle, a lower rate is applied on lambs and sheep.
In 2002, 1.6m head of cattle and almost 3m lambs and sheep were slaughtered at the Irish meat factories.
The insurance premiums paid for these could be put to better use, suggested Mr Danagher such as a fund to pay farmers in the event of a factory collapse.
Michael O'Flynn, chairman, Limerick IFA said that farmers are entitled to know where the money is going, now that livestock processing charges have increased to the point where they often exceed the profit being made by the farmer.
He supported Mr Danagher's motion that the IFA National Livestock Committee and the National Council establish the amount of premiums paid, and what happens to the money collected.
