Foot-and-mouth: €10m plan to restock, relocate or close farms

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The government is preparing three schemes worth a combined 10 million euros to help livestock farmers hit by foot-and-mouth disease restock with high-genetic-value animals, move their farms to safer areas or leave farming altogether.

The schemes come on top of the immediate containment measures and 20 million euros in compensation for culled animals, animal feed and lost milk. They take into account a report on the recovery and rebuilding of Cypriot livestock farming by a special scientific committee headed by Stavros Malas.

The schemes, which the Department of Agriculture will run, are being put to public consultation. They will be discussed at a meeting of the special advisory committee on support for affected farmers at the Agriculture Ministry on 18 November, before being sent to the Commissioner for State Aid Control and the Finance Ministry for approval.

Restocking scheme

The largest scheme, with a budget of 6 million euros, aims to significantly improve the quality of livestock on affected sheep, goat and cattle farms that want to restart.

Farmers will buy breeding animals from certified donor farms that meet strict criteria. The list of donor farms will be open and updated in line with the progress of health checks, and will be approved by a three-member committee chaired by the Department of Agriculture, with representatives of the Agricultural Research Institute and the Veterinary Services.

Support will vary by species, age and productivity, with a ceiling for each category. Where the cost of buying high-genetic-value animals is higher than the compensation for culling the same number of animals (over six months old for sheep and goats, and over 12 months for cattle), the scheme will cover the difference.

Leaving farming or relocating

Two further schemes, worth 2 million euros each, aim to ease pressure on the livestock farming areas hit by the outbreak, by paying for farm buildings to be demolished.

The voluntary exit scheme is for farmers in affected areas with capacity for up to 150 sheep and goats aged six months and over, or 60 cattle aged 12 months and over, who want to stop farming permanently rather than relocate. It covers 100 per cent of the current value of licensed buildings and 80 per cent for unlicensed ones, with a bonus of 20 per cent of the approved amount for those who demolish within three months of final approval.

The relocation scheme is for affected sheep and goat farms with 50 to 150 productive animals that demolish their buildings and move to new areas where the risk of animal disease spreading is lower. It pays the same rates for licensed and unlicensed buildings. To build new premises, farmers can use their own funds or apply for support under the Common Agricultural Policy Strategic Plan 2023-2027.

How compensation is calculated

The first phase of support focused on immediate relief for farmers whose animals were culled. That compensation is tied to restarting production.

It is calculated from 2024 or 2025 financial or tax records, based on net pre-tax profit from livestock farming. Payments from the Cyprus Agricultural Payments Organisation (CAPO) included in income are deducted, except for the coupled support for sheep and goats where it applies. Depreciation, interest on farm loans and confirmed 2026 debts to municipal or community authorities are added. Where 2024 figures are used, an adjustment is made if production has changed by more than 10 per cent.

Small sheep and goat farms with fewer than 100 productive animals can choose a simplified process, with a flat amount per animal and no need to submit accounts. Farms with 51 to 99 animals can also opt for an individual assessment.

To receive compensation, farmers must restore at least 30 per cent of their productive livestock within eight months of the Veterinary Services issuing the relevant certificate. Payment is made in two instalments: 50 per cent up front on proof of an order for animals, and the remaining 50 per cent once restarting is confirmed.

A separate proposal is going to the Cabinet to cover the wages and employer contributions of staff at affected farms, so that jobs are kept until the farms reopen or employment ends.

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