Cabinet approved the scheme in 1999 to mitigate veterinary restrictions imposed on the movement of cattle north of the Veterinary Cordon Fence (VCF).
Farmers who are participating in the Affirmative Action Loan Scheme (AALS) and who are farming north of the VCF, qualify to apply for additional assistance under the N-SIS.
The objective of this scheme is to accord farmers north of the VCF the opportunity to resettle on commercial farms south of the VCF. Farmers are required to dispose their cattle through slaughtering at a registered abattoir and /or a recognized abattoir entrepreneur, except for stud bulls of outstanding quality.
Proceeds from such sales will then be complimented from the N-SIS budget to purchase an equivalent number of disease free cattle south of the VCF, to be used on the newly acquired farm. The minimum number of cattle that can be subsidized is 150 and limited to 70% of the official carrying capacity of the farm, a maximum of 400 cattle.
However, the actual amount of subsidy payable per head of cattle will be calculated as the difference between the proceeds of the cattle sold and the purchase price of animals bought south of the VCF. Should the price of the cattle bought south of the VCF be less than the proceeds, no subsidy will be payable and the amount paid over by the abattoir and /or recognized abattoir entrepreneur to Agribank, will be forwarded to the applicant.