UEP’s Senior VP of Food Safety Regulatory Affairs, Oscar Garrison, attended a policy discussion with USDA’s Animal and Plant Health Inspection Service (APHIS) in Riverdale, Maryland on April 17.  The agency outlined their draft policy for indemnity and compensation in the event of low pathogenicity avian influenza (LPAI) H5 or H7 detection in commercial poultry.  While many questions and challenges remain about the potential use of controlled product marketing by the commercial layer industry, the agency believes there are instances where it could be used and will leave the option on the table for consideration on a case by case basis.

The draft policy outlines that for H5/H7 LPAI-affected flocks, APHIS, with input from the owner, industry and the State Animal Health Official, will first determine if controlled marketing or depopulation via slaughter is a recommended option for the affected flock.  See the next page for APHIS’s summary of the policy.

APHIS Indemnity and Compensation Policy for H5/H7 LPAI-Affected Flocks (Excerpt)

For H5/H7 LPAI-affected flocks APHIS, with input from the owner and the State Animal Health Official, will first determine if controlled marketing or depopulation via slaughter is a recommended option for the affected flock.

1. Scenario One: The flock can be control marketed. If the flock can be control marketed or depopulated via slaughter, APHIS will pay the following for indemnity and compensation:

• Zero percent indemnity or compensation for depopulation.
• 100 percent of HPAI compensation/flat rates for disposal (materials), materials destroyed, and virus elimination in all occupied houses.

2. Scenario Two: The flock cannot be control marketed. If the flock cannot be control marketed or depopulated via slaughter, APHIS will pay the following for indemnity and compensation:

• 100 percent indemnity and depopulation costs; and
• 100 percent of HPAI compensation/flat rates for disposal (materials), materials destroyed, and virus elimination in all occupied houses.

In both Scenario 1 and 2, the owner must present APHIS with evidence that the premise was following sufficient biosecurity measures to prevent the introduction of LPAI at the time the disease is suspected to have entered the flock.

3. Scenario Three: 25 percent indemnity with 100 percent compensation. If the flock is only eligible for 25 percent indemnity per existing regulations*, or if there is evidence of significant biosecurity lapses documented by State and/or Federal personnel, or if the owner declines controlled marketing or depopulation via slaughter as recommended by APHIS, then the following guidance will be applied:

• 25 percent indemnity;
• 100 percent depopulation costs; and
• 100 percent HPAI compensation/flat rates for disposal (materials), materials destroyed, and virus elimination in all occupied houses.

Note:  U.S. Code of Federal Regulations Title 9 Part 56 Paragraph 3 (9 CFR §56.3) outlines three situations in which an H5/H7-affected flock is eligible for 25 percent indemnity.  Click here for the USDA LPAI Indemnity & Compensation Policy with this information.