What’s the difference between an operational cost and compensation?
Operational costs are costs you incur because of the restrictions you are under, whereas compensation is for losses you experience as a direct result of MPI’s exercise of regulatory powers as part of the M. bovis Response. Compensation is jointly funded by MPI, DairyNZ and Beef + Lamb New Zealand, and the process is administered and paid by MPI through the MPI Compensation Team.
You can be reimbursed for pre-approved on-farm operational costs. You can claim for compensation if you have incurred a financial loss due to MPIs exercise of powers or restrictions under part 6 or 7 of the Biosecurity Act 1993.
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Operational costs You may be able to request reimbursement for some on-farm costs if there is an urgent need, or to meet M. bovis Programme requirements. Examples include additional transport costs, mustering and feed supplies. You need pre-approval for operational costs. You'll need to work with your Incident Control Point (ICP) Manager and the MPI Regional Recovery team who can help you to have these approved. |
Compensation You may be eligible for compensation if you have incurred a loss due to the Ministry for Primary Industries’ (MPI) exercise of powers or restrictions under the Biosecurity Act 1993 (the Act) section 162A, parts 6 and 7. Examples include damage to or destruction of property and losses as a result of restrictions imposed on the movement or disposal of goods (e.g. animals). |
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How to apply/claim for: |
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Farmer tip:
Good record keeping is essential to any claim. Keep clear records of your contracts, correspondence, verbal instructions given by MPI and AQ staff, and details of any losses you have suffered.
You need to seek prior agreement on any actions and operational costs you wish to claim for.
Operational costs need pre-approval before the expenditure is incurred. Work with your Incident Control Point (ICP) Manager and the MPI Regional Recovery team, who will help you to have these approved.
You can apply for support for the following on-farm operational costs.
For more information about operational costs, contact your ICP manager or Recovery Adviser.
Freephone: 0800 00 83 33
Email: MBovis2017_ART@mpi.govt.nz
Assistance preparing your claim
DBCAT (DairyNZ and Beef + Lamb New Zealand Compensation Assistance Team) provides free assistance to farmers preparing compensation claims. We encourage you to talk to them early in the process.
This guide from DBCAT has a lot of valuable advice about the compensation process, and how they can help.
Are you the legal owner?
MPI can only pay the legal owner of the affected property - you need to provide evidence to show that you’re the legal owner of the property, goods or stock directly affected by MPI's exercise of powers.
When to make a claim
You can claim compensation from the date the loss was incurred. Claims cannot be made in advance of a loss being incurred. All claims should be submitted to MPI within one year from the date the loss could be reasonably verified.
Making a claim - checklist of what we need
Make sure you've provided us with:
We encourage you to use DBCAT (DairyNZ and Beef + Lamb NZ Compensation Assistance Team) to help you put your compensation claim together. DBCAT provides a free service supported by the Ministry for Primary Industries (MPI) and run independently by DairyNZ and Beef + Lamb NZ.
They will help you to:
Contact DBCAT
Phone: 0800 32 22 81
Email: admin@dbcat.co.nz
Making more than one claim
You'll need to make a separate claim for each of the different types of losses you have incurred. You will have to complete the relevant claim form associated with the losses.
All claims should be submitted to MPI within one year of the date of loss. If you experience further losses after being paid compensation, you can still submit further claims.
Payment of compensation depends on you meeting certain conditions laid out in the Biosecurity Act. In order for the M. bovis Programme to pay compensation, we need to be able to support your loss. To do this, you will need to provide information that substantiates the type and amount of loss.
It’s a good idea to keep all the documents and records that can support the verification of your claim. These include paid invoices, statements, farmland accounts, milk dockets, pasture records and contracts.
You also need to show you considered and took reasonable steps to mitigate (reduce or avoid) the loss. To do this, explain the steps you considered to mitigate your loss, and what steps you actually took. This may include making changes to farm operations to avoid losses or using alternative ways to generate income.
Compensation can only be paid for loss caused as a direct result of MPI’s exercise of powers. This could follow a Notice of Direction (NOD) to depopulate animals, or as a result of movement controls.
If you culled stock without direction from MPI, or had stock that were culled before any NOD was issued or movement controls began, you will be unlikely to meet the eligibility criteria set out in the Act.
For voluntary culls, you will need to provide evidence of those losses. MPI will look at compensation on a case-by-case basis.
You'll need to complete the compensation claim form relating to your loss and submit the information to verify this loss.
You can either download the relevant compensation claim form below or ask us to send you one by emailing the Compensation Coordinator.
Once MPI’s Compensation Team receives your compensation claim form, along with all your supporting information, they will start the assessment. They'll then seek approval of any decision.
Someone from the compensation team will contact you with the outcome as soon as possible. Each claim is different, and more complex claims may need more time.
Who to contact
For general information about claiming compensation, contact the compensation coordinator: