
The Welsh Assembly Government's plan includes a one-off test of all cattle and a review of the compensation system, rural affairs minister Elin Jones announced.
Wales' chief veterinary officer said bovine TB was out of control and the current policy was not working.
In a briefing on Tuesday, Christianne Glossop said incidents had increased dramatically over the last decade.
Compensation payments to farmers have risen from £1.3m in 1999-2000 to £15.2m in 2007-2008.
'Protected species'
Farmers have long blamed badgers for spreading bovine TB but animal groups say evidence does not support this.
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