USDA is launching a new initiative to compensate dairy farmers for milk losses caused by H5N1,marking potentially the largest economic aid for the dairy industry to date. Dairy farmers with H5N1-infected cows will be compensated for their milk losses. Payments will be retroactive and calculated on a per-cow basis, considering the loss of milk production and prices in the preceding month.
USDA will spend a few weeks designing the program before accepting applications.
The compensation is significant for dairy farmers, potentially up to $250,000 a week for a farm with 5,000 cows, equating to about $50 per cow. The H5N1 virus can lead to a 20% drop in milk production for two to three weeks, impacting about 10% of cattle in affected herds.
Like programs for poultry farms, this indemnity initiative aims to encourage farmers to report cases and take samples for government tracking. USDA’s emergency assistance program will fund the reimbursements, covering losses from weather events and diseases.
USDA is also extending funding to dairy farmers whose herds have not tested positive for H5N1. This includes reimbursements for veterinary and shipping costs for testing and up to $1,500 for developing and implementing biosecurity plans.
