FARMERS affected by foot-and-mouth fear they could struggle to rebuild their livelihoods after the introduction of new compensation rules.

Payments for livestock slaughtered under a scheme to protect animal welfare were cut yesterday from 100 per cent to 70 per cent of the market value.

The move means farmers could lose thousands of pounds and comes after a survey showed record numbers were already thinking of quitting the industry.

An NFU North-East spokesman said: "This will come as a further devastating blow to farmers trying to ride out the foot-and-mouth crisis."

The payments are made under the welfare disposal scheme, designed to help farmers who are unable to move their animals under restrictions aimed at stopping the spread of the disease.

If the animals exhaust their pasture and their condition deteriorates, and they cannot be sold to markets, then farmers can use the scheme to have the animals destroyed.

But Agriculture Minister Nick Brown announced last week that payments under the scheme would be reduced.

He said the relaxation of rules on preventing animals moving in affected areas, but outside the 3km zone around infected premises, meant most farms had an alternative to the welfare disposal scheme.

And he said the change aimed to ensure the scheme did not act as a disincentive to farmers by providing a more attractive financial option than the market itself.

He said arrangements were being put in place to ensure farmers knew what payments they would get before their animals were destroyed.

But the NFU spokesman said the move would penalise farmers whose animals had not contracted foot-and-mouth.

He said: "There are a number of farmers who cannot sell their animals and the animals are getting out of condition.

"They have the misfortune to be farming near a contaminated premises, and they don't have any option apart from using this scheme. This has been a crucial outlet for some very desperate farmers, and it is very unwelcome news that the payments are being cut."