Written
by M. Sean High
On
November 5, 2015, ten U.S. senators issued a letter to U.S. Department of
Agriculture (USDA) Secretary Tom Vilsack regarding USDA’s development of its
Fall 2015 Highly Pathogenic Avian Influenza (HPAI) Preparedness and Response Plan. The ten senators signing onto the letter
were: Thad Cochran (R-MS), Jeff Sessions (R-AL), David Vitter (R-LA), John
Boozman (R-AR), Tom Cotton (R-AR), Richard Shelby (R-AL), Johnny Isakson
(R-GA), Roger Wicker (R-MS), Bill Cassidy (R-LA), and David Purdue (R-GA).
According to the senators’ letter, three matters are
of particular importance and should be addressed in the regulatory development process
being conducted by USDA through its Animal and Plant Health Inspection Service
(APHIS).
First, the senators stated that current APHIS regulations “do not allow for the splitting
of indemnity payments between owners and growers.” As a result, the senators
argue that many contract growers are left “vulnerable in the event of [an HPAI]
outbreak.” In an effort to provide protection for these contract growers, the
senators “request[ed] that [APHIS] allocate any future indemnity equitably so
that producers can maintain access to financing in the short-term and the
future.”
Second, the senators stated that current APIHS regulations
only permit indemnity for losses associated with bird mortality and not for
losses associated with disruptions in the supply chain. Specifically, the senators stated that “[e]ven
if the birds in a particular facility do not contract HPAI, that producer could
be affected by a hatchery outbreak.” Accordingly, the senators requested that
APHIS consider providing producers with “downtime compensation.”
Third, the senators stated that “it is important for
growers to have expanded financial flexibility” to avoid the possibility of HPAI
induced foreclosures. To accomplish this
goal, the senators requested that USDA “direct the Farm Service Agency to begin
developing guidelines for its direct and guaranteed loan programs that would
enable existing loans to be restructured to provide flexibility for borrowers
severely affected by HPAI.”
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