Producer perceptions of US livestock indemnity policy

Abstract

Objective

Livestock disease management is crucial for producers. To control and eradicate disease, the US gov- ernment has a duty to depopulate infected or potentially infected animals, and current indemnity policy dictates that producers must receive fair market compensation for depopulated animals. This study surveys producers’ pref- erences regarding livestock indemnity policy to better un- derstand ordered preferences for any changes in the future.

Materials and Methods

Through a ranked-ordered probit model, we analyzed producers’ rankings of 4 dif- ferent types of indemnity from an online producer survey.

Results and Discussion

Based on the responding producers, the most preferred method of livestock indem- nity is fair market value for the animal, and the second most preferred indemnity policy is government-subsidized livestock insurance.

Implications and Applications

The results indicate heterogeneity in preference rankings across producers and by producer characteristics. Our findings provide policy- makers with information on producers’ opinions for com- pensation after a disease outbreak. These insights allow legislators to consider producers’ preferences when updat- ing or creating new policies regarding livestock disease management in the future.