Reduction in levels of Government subsidy for fallen stock collection

Government has agreed that the National Fallen Stock Company can implement the first stage of its planned decrease in the level of subsidy paid to farmers for the collection and disposal of fallen stock under the National Fallen Stock Scheme.  

The discount given to members will be reduced from 50% to 35%. The new rate will come into effect from 1 August 2006, and will apply until further notice.

This reduction will allow the existing £20m funding to be better spread over the extended funding period until November 2008 and help to ensure there is a smooth transition to a post-subsidy scheme.

Animal Health and Welfare Minister Ben Bradshaw said:

“Today's news should not come as any great surprise to farmers as our intention to cut the Government subsidy has been in the public domain and on the defra website since the scheme started towards the end of 2004. We always envisaged this situation, it was just a question of when.“

“There will also be further cuts in discount in the future in line with our stated approach towards a post subsidy scheme. As of 21 June 2006, the National Fallen Stock Scheme had 40,166 members. The subsidy reduction will mean that a farmer who is a member of the National Fallen Stock Scheme currently paying £32 for the collection of, for example, some pigs, would, after August 1, pay £41.60 for collection. However, the cost without the Government subsidy (or for a non- member) would be £64.“

Notes to editors

1. The National Fallen Stock Company as expected, recommended to Government that it decrease the discount to farmers for the collection and disposal of fallen stock under the National Fallen Stock Scheme. Government accepted this recommendation.

2.The EU Animal By-Products Regulation, which banned the routine on-farm burial and burning of animal carcases, came in to force on 1 May 2003.

3. The National Fallen Stock Scheme, jointly set up by Government and the farming industry to help farmers meet their legal responsibilities for disposing of dead animals, has been running since November 2004.

4. Payment by the farmer is made by monthly variable direct debit to the Company, minus the government contribution.

5. The Government commissioned an independent review of the National Fallen Stock Scheme & Company at the end of 2005. The Report was produced by Bob Bansback, a well respected figure in the meat & livestock industry, and was published on the Defra website on 1 June (link: http://defra/animalh/by-prods/pdf/nfsco-review.pdf )

6. Ministers have agreed that, in line with one of the Reports' recommendations, that the existing Government funding for the Scheme should be spread over a further year to November 2008. The Government is currently considering the Reports' other findings, and will respond fully later in the year.

7. Details of the EU Animal By-Products Regulation, including more information about disposal of fallen stock and the Scheme can be found on the Defra website at http://defra/animalh/by-prods/fallen/fallen.htm and at http://www.nfsco.co.uk . The helpline number for the Scheme is: 0845 054 8888

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