Senators ask USDA to better protect farmers from Avian Flu losses

Nine U.S. Senators led by U.S. Sen. Thad Cochran, R-Miss., sent a letter of concern to U.S. Department of Agriculture Secretary Tom Vilsack on Thursday (Nov. 5) seeking more action to thwart the threat of Avian Influenza (AI).

AI has cost the poultry industry hundreds of millions in exports and lost sales since the outbreak began earlier this past spring. Tyson Foods said in its recent quarterly earnings it’s prepared foods segment suffered a $25 million to $30 million impact from AI in that one quarter alone.

While large poultry and egg companies have lost money from the outbreaks in December 2015 and May 2015, farmers who raise the flocks also suffer massive income losses when their flocks must be destroyed.

U.S. Sen. Tom Cotton, R-Ark., said plans to address the threat of a renewed avian flu outbreak should be tailored to ensure the continued viability of the U.S. poultry industry.  

Cotton and U.S. Sen. John Boozman, R-Ark., are among the group seeking more government action. The group requested action on three issues as the USDA determines how best to implement its latest preparedness and response plan. 

The Senators want to ensure the new plan regulations will allow for equitable distribution of indemnity support between owners and growers engaged in contract poultry productions, without which the growers could be left vulnerable given the high cost of production. In the event of an outbreak, the Senators also request policies that address indemnity protection against losses associated with AI-caused supply chain disruptions. The current assistance program would only cover birds that must be destroyed.

“Even if the birds in a particular producer’s facility do not contract highly pathogenic Avian Influenza, that producer could be affected by a hatchery outbreak. As the USDA continues to improve the response capabilities, we encourage you to consider providing downtime compensation and to report to us on the feasibility and costs that would be required by doing so,” the Senators wrote.

The lawmakers asked the USDA to develop guidelines to allow the restructuring of direct and guaranteed loans held by borrowers severely affected by highly pathogenic Avian flu.