Government prepares €10m recovery plan for livestock farmers

The government is preparing three support schemes worth a combined €10 million to help livestock farmers in Cyprus affected by foot-and-mouth disease (FMD) recover, relocate their operations or leave the sector permanently.

The measures will support farmers who want to restock with animals of high genetic value, move their farms to areas with a lower risk of disease transmission or stop livestock farming altogether.

The schemes come on top of immediate containment measures and €20 million in compensation for culled animals, animal feed and lost milk.

They also take into account recommendations in a report on the recovery and rebuilding of Cypriot livestock farming, prepared by a special scientific committee headed by Stavros Malas.

The Department of Agriculture will administer the schemes, which are currently under 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.

The proposals will then be submitted to the Commissioner for State Aid Control and the Finance Ministry for approval.

€6m scheme to help farms restock

The largest of the three schemes has a budget of €6 million and aims to improve the genetic quality of livestock on affected sheep, goat and cattle farms that wish to resume operations.

Farmers will be able to purchase breeding animals from certified donor farms that meet strict criteria.

The list of approved donor farms will remain open and will be updated as health checks progress. A three-member committee will approve the farms, chaired by the Department of Agriculture and including representatives of the Agricultural Research Institute and Veterinary Services.

The level of support will depend on the species, age and productivity of the animals, with a maximum amount set for each category.

Where the cost of purchasing high-genetic-value animals exceeds the compensation received for culling the same number of animals, the scheme will cover the difference. This applies to sheep and goats aged over six months and cattle aged over 12 months.

€2m scheme for farmers leaving livestock farming

A second scheme, with a budget of €2 million, will support farmers in affected areas who choose to leave livestock farming permanently rather than relocate.

It applies to farms with capacity for up to 150 sheep and goats aged six months and over, or up to 60 cattle aged 12 months and over.

To qualify, farmers must demolish their farm buildings. Compensation will cover 100% of the current value of licensed buildings and 80% of the value of unlicensed buildings.

Farmers who complete demolition within three months of receiving final approval will also receive a bonus equal to 20% of the approved compensation amount.

€2m scheme to relocate farms

The third scheme, also worth €2 million, is designed to encourage affected sheep and goat farms to move to areas where the risk of spreading animal diseases is lower.

It applies to farms with between 50 and 150 productive animals. Farmers must demolish their existing buildings and relocate their operations to new premises.

The scheme provides the same compensation rates for licensed and unlicensed buildings as the voluntary exit scheme.

Farmers can finance the construction of new premises themselves or seek support through the Common Agricultural Policy Strategic Plan 2023–2027.

How compensation for culled animals is calculated

The initial phase of government support focused on providing immediate financial relief to farmers whose animals were culled. This compensation is linked to the requirement to restart production.

The amount is calculated using financial or tax records from 2024 or 2025 and is based on net profit before tax from livestock farming.

Income from payments by the Cyprus Agricultural Payments Organisation (CAPO) is deducted, except for coupled support for sheep and goats where applicable.

Depreciation, interest on farm loans and confirmed debts owed to municipal or community authorities in 2026 are added to the calculation.

Where the 2024 figures are used, an adjustment is made if production has changed by more than 10%.

Small sheep and goat farms with fewer than 100 productive animals can choose a simplified compensation process. Under this option, they receive a fixed amount per animal without having to submit financial accounts.

Farms with between 51 and 99 animals can also choose an individual assessment.

Conditions and payment in two instalments

To qualify for compensation, farmers must restore at least 30% of their productive livestock within eight months of the Veterinary Services issuing the relevant certificate.

Payments will be made in two instalments. The first, covering 50% of the compensation, will be paid once farmers provide proof that they have ordered replacement animals.

The remaining 50% will be paid after the authorities confirm that production has restarted.

Separate proposal to protect farm workers’ jobs

A separate proposal is also being prepared for submission to the Cabinet. It aims to cover the wages and employer contributions of workers employed at affected farms.

The proposed support would help preserve jobs until farms resume operations or the employment relationship comes to an end.

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