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Compensation for Livestock Diseases in the United States. Steve Weber Stephen Ott July 16, 2008. Compensation for Livestock Diseases. Funding authorities Federal regulations Federal/State cooperation Appraisal Indemnity Other compensated items
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Compensation for Livestock Diseases in the United States Steve Weber Stephen Ott July 16, 2008
Compensation for Livestock Diseases • Funding authorities • Federal regulations • Federal/State cooperation • Appraisal • Indemnity • Other compensated items • Compensation process in emergency outbreak • Compensation in perspective of disease control • Evolution of compensation policy
Funding Authorities • Congressional authorization • Required for annual budgets including: • Surveillance • Diagnostics • Disease control operations • Compensation • Appropriation for specific disease control programs • Commodity Credit Corporation • Quasi government agency • Office of Management & Budget serves as the gatekeeper to the funds • Allocated compensation funds can roll over to next fiscal year • APHIS’ operational budget generally is not used for compensation
Federal RegulationsAnimal Disease Compensation • Title 9 of Code of Federal Regulations: Animals and Animal Products • http://www.access.gpo.gov/nara/cfr/cfr-table-search.html#page1 • Part 50: tuberculosis • Part 51: brucellosis • Part 52: swine pseudorabies • Part 53: foreign animal diseases • Part 54: sheep scrapie • Part 55: chronic wasting disease • Part 56: H5/H7 low pathogenic avian influenza
Livestock Disease Categories • Program Disease (9 CFR – Parts 50-52, 54-56) • Endemic • Of significant economic concern • Endemic • Tuberculosis in cattle • Chronic Wasting Disease in farm raised deer and elk • Foreign Animal Disease (9 CFR – Part 53, Part 56 (HPAI) • Diseases currently not in the U.S. • Typically are highly contagious • Thus potential for large economic impact • Ex: Foot & Mouth Disease, HP Avian Influenza
Federal—State Cooperation • States Departments of Agriculture have the authority to order destruction of animals for domestic/endemic diseases • Quarantines generally placed by State • Depopulations are usually voluntary • Federal government pays indemnity • Federal government can order destruction of animals to control a Foreign Animal Disease
Program DiseaseIndemnity Rates • Provided in 9 CFR, Parts 50-56 • Generally 100% Fair Market Value - with some exceptions • 95% for Chronic Wasting Disease (CWD) • $3000 maximum for cattle—tuberculosis • Commercial poultry LPAI 100% if in National Poultry Improvement Program (NPIP), 25% if not in NPIP • Allows for appraisal process to determine Fair Market Value • Off-set by other payments – insurance, salvage, State indemnity
Appraisal Process • Based upon fair market value of healthy animals • If whole herd depopulations generally private appraiser • If few animals then local federal veterinary official or Appraisal-Indemnity-Compensation Specialist ( Dr. Stephen Ott) supplies values • Developed using appraisal calculators • Poultry Appraisal • Standardized Rates for Commercial Poultry
Other Items Compensated for: • Contract poultry growers • Based upon percentage of contract completed minus any payment already received from the poultry company • Cleaning & Disinfection • Can be expensive • Critical to avoid re-infection
Compensation Process in Emergency Outbreak Incident Command System Incident Commander Planning Operations Logistics Finance Appraisal
Compensation in perspective • Elements of Disease Control • Purpose: Shared Public/Industry Goal • Recognize that in many countries affects more than agriculture • Authority/Policy/Budget • Biosecurity – vaccinations, quarantine • Surveillance • Diagnostics • Preparedness/Mitigation measures • Compensation: • Decrease: • Time to recognize/report disease • Time to become disease free • Progress towards achieving goal - Information
Evolution of Compensation Policy • Historically: • Herd/Flock Plans • Appropriate disposal • Cleaning and disinfection • Scraping/removal of manure • Proper paperwork • More Recently: Infectious Salmon Anemia, LP/HPAI • Surveillance/Reporting • Biosecurity • Adequate diagnostic measures
Evolution of Compensation Policy • Responsibility: Individual - Industry – Government – Govt/Industry/Insurance – Regional/Global Organizations • Amount: No compensation – Stated Amount – Fair Market Value – Capitalize on Product Value • Limiting Extent Quarantine – Zoning – Business Continuity • Continued Consideration: Animal Health – Public Health - Animal Welfare