APHIS Producer Indemnity and Compensation

As part of its efforts to eradicate and control foreign animal diseases, emerging diseases, and program diseases as authorized by Title 9, Code of Federal Regulations (9 CFR), APHIS provides indemnity and compensation to producers to remove animals it classifies as affected, suspect, or exposed to diseases of concern and to eliminate dangerous viruses from the environment.

If your flock is infected with highly pathogenic avian influenza (HPAI), USDA will provide indemnity and compensation for some of your losses and costs. USDA pays for birds and eggs that must be destroyed. USDA does not pay for birds that died from HPAI.

Compensation is handled separately from indemnity and covers several categories. USDA will also compensate you for materials, such as contaminated feed or egg packaging, that must be destroyed because they cannot be safely or adequately cleaned. USDA pays flat rates for virus elimination activities, including barn preparation, a cleaning step, and a disinfection step.

• The Department will not allow claims arising under the terms of this part if the payee has not complied with all quarantine requirements.

• The Department will not allow claims arising out of the destruction of animals, eggs, or materials unless they shall have been appraised as prescribed in this part and the owners thereof shall have executed a written agreement to the appraisals.

• USDA pays for birds and eggs that must be destroyed.

• USDA does not pay for birds that died from HPAI.

• The owner of the poultry or eggs and, if applicable, any party that enters into a contract with the owner to grow or care for the poultry or eggs, had in place, at the time of detection of highly pathogenic avian influenza, and was following a poultry biosecurity plan that meets the requirements of § 53.11(e).

• Owners and contractors are exempted from the requirements of paragraph (g)(1) of this section if the facilities where the poultry or eggs are raised or cared for falls under one of the following categories: Commercial table-egg laying premises with fewer than 75,000 birds; Egg-type game bird and egg-type waterfowl premises with fewer than 25,000 birds. Premises on which fewer than 100,000 broilers are raised annually; and Premises on which fewer than 30,000 meat turkeys are raised annually.

• If your commercial poultry operation has been confirmed positive for HPAI, you must pass an Infected Premises Restock Biosecurity Audit before restocking if you wish to be eligible for indemnity for the restocked poultry.

• If you are moving poultry into a designated buffer zone, you must pass a USDA Buffer Zone Placement Biosecurity Audit to be eligible for Federal indemnity for any birds that moved onto the premises.

• If you decide to fallow your premises instead of completing virus elimination work, you are not eligible for virus elimination payments.

• If your herd is impacted by swine brucellosis, you may qualify for a Federal indemnity payment to reimburse you for your related losses.

The appraisal of animals shall be based on the fair market value and shall be determined by the meat, egg production, dairy or breeding value of such animals. The VS Indemnity Table provides indemnity values for animal agricultural commodities intended to standardize the indemnification process and values across USDA programs. USDA updates and publishes the tables annually. Producers are responsible for hiring and paying for an appraisal.

USDA and State animal health officials work with you to prepare an inventory as soon as HPAI is identified in your flock. The inventory lists all living animals in the flock and the current number of eggs on hand (if applicable). USDA uses standardized indemnity tables for birds that are specific to your industry segment and the species you have; USDA uses standardized values for eggs that are specific to their use (table eggs or hatching eggs). To calculate the final amounts you will receive, USDA multiplies the value per animal or egg by the number of live animals or eggs.

If you feel these national averages don’t adequately represent the fair market value of your birds, you may appeal the values by notifying your case manager or Field Reimbursement Specialist in writing within 15 days of receiving your initial indemnity value estimate. To support your appeal, you’ll need to obtain an independent, third-party appraisal report, prepared by a qualified appraiser, on the value of your birds.

USDA or its contractors may carry out depopulation and disposal work and pay the costs directly. If you choose to assist in this work or hire your own contractors, USDA must approve those costs in advance and agree on the methods used. USDA then reimburses you based on receipts and records of work done. APHIS offers two methods to reimburse producers for the depopulation and/or disposal (D&D) of birds affected with highly pathogenic avian influenza (HPAI)—the D&D Flat Rate method or the Detailed Financial Plan method.

USDA pays flat rates for virus elimination activities, including barn preparation, a cleaning step, and a disinfection step. The amounts are calculated based on the area of the structures housing animals and eggs.

Because you will only be indemnified for live birds and HPAI spreads quickly and can be fatal to flocks, it is critical that you report sick birds immediately and begin the indemnity process quickly if you have an infected flock.

1. Work with your case manager or Field Reimbursement Specialist to fill out and sign an indemnity request form.

2. USDA will begin depopulation work and prepare the initial indemnity value. You’ll receive paperwork indicating the indemnity amount.

3. Register your business with the U.S. Government System for Award Management (SAM).

4. Complete and sign the paperwork (including your bank information and SAM registration information) and return it to your case manager or Field Reimbursement Specialist.

5. You’ll receive payment from USDA via direct deposit in about 2–3 weeks. If you appeal the initial indemnity value (see Fair Market Value of Your Birds) and your appeal is successful, additional funds would be deposited at a later time.

Compensation is handled separately from indemnity and covers several categories. Your case manager or Field Reimbursement Specialist will help you fill out the required paperwork for these claims.

Claims for the following must be presented to APHIS, through the inspector in charge, on a form approved by the Administrator: Compensation for the value of animals; The cost of burial, burning, or other disposition of animals; The value of material destroyed; and The expenses of destruction.

• VS Indemnity Table

• HPAI: Indemnity and Compensation

• Producer Information and Decision Tool: Depopulation and Disposal Flat Rate for Commercial Poultry

• HPAI Virus Elimination: Per-Square-Foot Flat Rates for Floor-Raised Poultry

• HPAI Virus Elimination: Per-Cubic-Yard Flat Rates for Table Egg Laying Bird Barns and Per-Square-Feet for Table Egg Storage and Processing Facilities

• Biosecurity audits required for HPAI indemnity

• 9 CFR Part 53

• APHIS animal health contacts by State