The increase to the ceilings for bovine TB (bTB) compensation is to "reflect the changes in market conditions and align with market values", Minister Martin Heydon has said.
An allocation of €142.4 million for bTB measures was confirmed in Budget 2027 for next year.
This compares with Budget 2026 providing an increased budget for the bTB programme with €157 million allocated for this year.
"The primary driver of the cost of the bTB programme is disease levels and there has been encouraging progress in recent months in reducing bTB levels," Minister Heydon said in response to a question from TD Pádraig O'Sullivan.
"The latest statistics for 2026 indicate 5,372 herds have suffered a bTB breakdown in the last 12 months which is down 10.9% compared to this time last year with a herd incidence now of 5.42% compared to 6.03% this time last year.
"This is due to the combined efforts of all stakeholders in engaging with farmers to reduce the risk bTB poses to Irish herds and rural communities.
"I am confident that the changes I have introduced in the bTB Action Plan will help drive down disease levels further."
The On Farm Market Valuation Scheme (OFMV) is the principal compensation measure available to herdowners whose herds are affected by a bovine TB breakdown in their herd.
The scheme aims to compensate farmers up to the open market value of an animal as if they were not affected by disease, subject to ceilings.
"The increase to the OFMV ceilings by €500 for all categories of reactors is to reflect the changes in market conditions and align with market values," Minister Heydon said.
The following ceilings apply to compensation in respect of an individual bovine animal under the OFMV:
| Animal type | Ceiling per animal |
| Pedigree cows & pedigree in calf heifers | €5,500 each |
| Three pedigree stock bulls allowed in the same breakdown episode | €5,500 each |
| Any other individual bovine animal | €3,500 each |
The above ceilings are applicable for animals that have their first valuation under the OFMV Scheme carried out from October 6 onwards.
"The cost of increasing reactor compensation ceilings by €500 will ultimately be determined by a combination of market prices, which form the basis of live valuations, and disease levels," the minister added.
"The primary focus of the bTB programme continues to be on reducing the levels of disease which will in turn reduce the impact of bTB on Irish farm families, reduce the cost of the programme and decrease costs for farmers and the taxpayer."
Farmers have said the increase in TB compensation ceilings is a "move in the right direction".
David Hall of the Irish Farmers' Association (IFA) said this week that the higher ceilings will reduce the number of farmers whose compensation falls short of the market value for their livestock.
"However, some farmers will continue to suffer losses because of the remaining limits," Hall added.
TD John Paul O'Shea asked the minister if the criteria for health testing are different when only contract rearing for one farmer than that of multiple contract rearing for multiple farmers.
The minister said Bovine TB Action Plan outlines changes to bTB testing requirements for contract rearing as follows: