Irish farmers whose herds and flocks are slaughtered are expected to be compensated at market-value rate for their animals.
This means they will get the prices they would have received if they had sent them to factories for processing.
However, there is no provision under the Disease of Animals Act to compensate them for the loss of income they will suffer following the destruction of their livestock.
Already animals within a one-kilometre radius of the affected farm are being killed.
That will extend to a three-kilometre radius and Mr Kevin Kinsella, secretary of the Irish Farmers' Association's livestock committee, fears that eventually the whole of the Cooley peninsula will be included.
This would mean the slaughter of some 40,000 sheep and between 6,000 and 8,000 sheep.
In Britain, farmers have been paid the market value of livestock within seven days of slaughter.
The British National Farmers' Union met the Prime Minister, Mr Tony Blair, yesterday to discuss the question of consequential loss.
The Department of Agriculture has not yet issued any information on compensation.