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The voluntary scheme, which has support from key livestock organisations and the devolved authorities, will be jointly financed by subscriptions from farmers and Government.

Defra and the devolved administrations have reaffirmed their commitment to making a contribution of up to 310m in the first year to get the scheme up and running and further reduced contributions over the next two years.

And in order for the scheme to begin as soon as possible, it has been agreed that a company, limited by guarantee, should run the scheme. There will be members from both Government and industry on the company's board.

Under the scheme, which covers all farmed livestock, producers with small numbers of livestock will pay 350 per year, medium sized producers 3100, large producers 3350 and the very largest producers will be asked to pay 31,000. Further consideration is being given to the practical arrangements for very large, specialist producers. Specific arrangements may need to be put in place for poultry, horses, fish and exotic livestock.

Mr Bradshaw said he was pleased the scheme would go ahead following extensive consultation with the livestock sector and the devolved administrations.

"This will be a unique joint venture which builds on the partnership approach at the heart of Defra's new animal health and welfare strategy.

"I am delighted that we have been able to reach agreement with the livestock industry on a national fallen stock scheme after the initial disappointing response to a letter asking for expressions of interest from livestock farmers.

"Following that response, we have had to re-work the proposed subscription scheme to make sure it was going to be viable. This will mean larger producers paying more than originally proposed. However, the Scheme still gives a good deal to small and big producers alike and has the full backing of Ministers in devolved administrations, the NFU, livestock trade associations and the collection and disposal industry," he added.

Further details of how farmers can join the scheme and how those involved in the collection and disposal of fallen stock can participate will be made available in due course. Until the scheme is up and running, farmers will need to make their own arrangements to ensure fallen stock are disposed of in compliance with the EU Animal By-Products regulation.

Source: DEFRA - 24th July 2003