Livestock levy probe demanded
They want the amount clarified, and full transparency on operation of the insurance cover, including how much is paid out to farmers and where the balance of the money goes. It was estimated at a recent meeting of Limerick IFA that farmers pay €6 million annually for insurance on the livestock they sell to meat factories.
A motion from the Shanagolden branch suggested that any money from the insurance levy which is not paid out to farmers should be put into a fund for bonding payments to farmers for livestock, to safeguard them in the event of a factory going out of business while owing money to farmers.
But Eddie Scanlan, IFA National Livestock Committee member, told the meting that the National Livestock Committee would be unlikely to agree to a ‘slush fund’ to release factories from their responsibilities to farmers in the event of a financial collapse.
He also warned that there may be some risks for farmers if they decide they do not want to pay insurance, but he supported the call for greater transparency.
He also suggested that the major insurance companies be asked to quote for insurance on livestock going into factories.
IFA National Animal Health Committee Chairman Michael Flynn has advised farmers they are not obliged to pay insurance on reactor cattle.
He said the Department of Agriculture do not require insurance to be paid on reactor cattle and that the issue is a matter between farmers and abattoirs. He revealed some factories do not collect insurance on reactor cattle, and said this is “worth up to an additional €6 per head”.
He said; “Farmers should enquire from the Department whether the nominated factory stops insurance charges prior to the cattle leaving the farm. They should refuse to pay the charges, as they are entitled to the full market valuation under the on-farm market valuation scheme”
