1. United States Department of Agriculture Animal and Plant Health Inspection Service Compensation for Livestock Diseases in the United States Steve Weber Stephen Ott July 16, 2008

2. United States Department of Agriculture Animal and Plant Health Inspection Service 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

3. United States Department of Agriculture Animal and Plant Health Inspection Service 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

4. United States Department of Agriculture Animal and Plant Health Inspection Service Federal Regulations Animal 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

5. United States Department of Agriculture Animal and Plant Health Inspection Service 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

6. United States Department of Agriculture Animal and Plant Health Inspection Service 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

7. United States Department of Agriculture Animal and Plant Health Inspection Service Program Disease Indemnity 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

8. United States Department of Agriculture Animal and Plant Health Inspection Service 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

9. United States Department of Agriculture Animal and Plant Health Inspection Service 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

10. United States Department of Agriculture Animal and Plant Health Inspection Service Compensation Process in Emergency Outbreak Incident Command System Incident Commander PlanningOperationsLogisticsFinance Appraisal

11. United States Department of Agriculture Animal and Plant Health Inspection Service 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

12. United States Department of Agriculture Animal and Plant Health Inspection Service 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

13. United States Department of Agriculture Animal and Plant Health Inspection Service 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