COCHRAN SEEKS USDA COOPERATION IN CREATING
WARRANTY PROGRAM FOR MISSISSIPPI LIVESTOCK PRODUCERS

Nongovernment Program Would Aid Producers Hurt by Animal Diseases

WASHINGTON, D.C. – U.S. Senator Thad Cochran (R-Miss.) today reported that he has asked the U.S. Department of Agriculture to cooperate with livestock industry officials in Mississippi to create and implement a warranty program that would help protect livestock producers after their herds are affected by disease.

Cochran, along with fellow Senators from Alabama and Georgia, has written Agriculture Secretary Tom Vilsack to encourage him to continue providing USDA assistance in developing a livestock warranty program to protect producers.  A warranty program would help reduce the risk of financial losses when herds are quarantined or destroyed because of diseases, such as bovine tuberculosis.

“This is an industry-led initiative that would not cost the federal government anything but would add a level of protection for livestock producers should disease hit their herds,” said Cochran, who serves on the Senate Committee on Agriculture, Nutrition and Forestry.

“Other industries have created similar programs, and input from the U.S. Department of Agriculture is needed to successfully structure and implement such a program for livestock producers,” he said.

In the letter to Vilsack, Cochran—along with Georgia Senators Saxby Chambliss and Johnny Isakson and Alabama Senators Richard Shelby and Jeff Sessions—noted that livestock owners and producers often face financial hardships when the USDA or a state agency issues quarantine or herd destruction orders for an affected herd.

“For many producers, the risk associated with devastating disease is one that is difficult to hedge.  As for those in contract operations, the financial loss stemming from the time spent out of production can often have catastrophic results,” the Senators wrote.

A warranty program would help eliminate the financial uncertainty associated with quarantines by providing producers with expedited compensation for mortality loss, as well as accommodate revenue losses and expenses not covered under the Animal Health Protection Act.  This program would include protections for all livestock, including beef cattle, dairy cows and swine.

“We want to express our gratitude to the USDA for its long history of successful responses to traditional animal and plant health emergencies, and would greatly appreciate your continued concurrence with livestock industry officials in creating and implementing a warranty program that would benefit the livestock industry and reduce the risk of catastrophic losses associated with disease,” the letter said.