Charges for collections under the National Fallen Stock Scheme will increase from 1 June.
It was announced last year that the scheme would be extended by a year to November 2008 to ensure there is a smooth transition to a post-subsidy scheme.
But due to a marked increase in scheme usage the National Fallen Stock Company is decreasing the discount offered to farmers from 35% to 10%.
However, it is also introducing a seasonal increase in the discount to cover peak periods of usage in early 2008.
Michael Seals, NFSCo hairman said: “The Board of the Company has looked closely at the use of the Government contribution and decided that to enable it to remain within the £20 million put forward by government it is necessary to reduce the discount given to members from 35% to 10% from 1 June 2007 but to raise the rate early in 2008 to cover the peak periods of usage during the Spring of that year.
“This change to the way that the government funding is passed on to farmers will allow us to continue to offer a valuable service to all of our members and will make best use of the limited remaining funds at a time of year when demand is at its greatest.”