USDA Strengthens Biosecurity Requirements for Bird Flu Related Indemnity Payments

by Cami Koons

Poultry producers who have previously had flocks infected with highly pathogenic avian influenza would have to pass a biosecurity audit to be eligible for future indemnity payments under a new rule from the U.S. Department of Agriculture. 

The USDA’s Animal and Plant Health Inspection Service amended the conditions to ensure commercial poultry producers are making necessary biosecurity changes to minimize reinfection. 

According to the rule, the current outbreak, starting in 2022, has cost $1.25 billion in indemnity and compensation payments to producers.

A total of $227 million of those payments have gone to facilities that have had multiple outbreaks. APHIS said 67 commercial poultry premises have been infected with HPAI two or more times in the current outbreak. 

“This interim rule will serve to reduce the risk that a producer becomes inclined to disregard biosecurity because they believe that APHIS will continue to cover the costs associated with damages related to an HPAI outbreak through indemnity payments regardless of their biosecurity status,” the text for the rule reads.

A statement from the United Egg Producers said the group was supportive of the interim rule and for the relief indemnity payments have provided to egg farmers throughout the HPAI outbreak.

“Biosecurity on U.S. egg farms is at its highest levels – and hundreds of millions of dollars have been invested to make egg farm biosecurity the best in the world,” the emailed statement read. “Unfortunately, these efforts have not been foolproof in fighting such aggressive strains of the virus.” 

When a flock is infected with HPAI, which is deadly in poultry, the entire flock is culled. According to the United Egg Producers’ statement, more than 112 million egg-laying hens have been lost since 2022 to the HPAI outbreak. 

“Indemnity is an emergency response measure from the government, much like other forms of federal disaster relief, and egg farmers are grateful for this support,” the statement said. “While it does not fully cover the financial losses of HPAI, it makes the difference between survival and going out of business for many farms.”

In 2014, the U.S. had an outbreak of HPAI that caused what APHIS called “the most expensive animal health incident recorded in U.S. history.” During the 2014-2015 outbreak, APHIS said indemnity payments totaled $200 million, with the service paying full indemnity to bird owners and producers, regardless of a biosecurity plan. 

Following the costly outbreak, APHIS amended the rule and required producers provide written biosecurity plans, to be audited at least once every two years, to be eligible for indemnity payments.

APHIS said it believed this strategy would be “sufficient to reduce spread of the virus in the event of another HPAI outbreak.” 

The costly and persistent outbreak starting in 2022 indicated the previous rule was “insufficient” and that “the current paper-based audit process does not always illustrate how well the premises are practicing biosecurity,” the interim rule said. 

To remain eligible for indemnity, the new rule requires visual, either virtually or in person, biosecurity audits of facilities that have previously been infected with HPAI and of facilities that are in the “buffer zone” of an infection and are receiving birds to a facility.

The rule additionally adds definitions for control, buffer and infected zones. A control zone comprises both the infected and buffer zones, with a buffer zone defined as the area “that immediately surrounds an infected zone.” According to the rule, these distances are determined by a state animal health official under current practices, but the additional definitions in the new rule give APHIS the “latitude” to determine and set the bounds in “extraordinary circumstances.” 

Previously infected facilities within the infected zone will have to undergo an in-person biosecurity audit and subsequent virtual audits every six months until the state where it is located “declares freedom” from the virus. 

The Iowa Department of Agriculture and Land Stewardship has reported one infection of HPAI in the state this year, following a string of detections in commercial and backyard flocks beginning in December 2024. 

According to data from APHIS, nearly 30 million birds in Iowa have been affected by the current outbreak of the flu.

The APHIS interim rule went into effect Dec. 31, 2024 and the department is accepting comments on the rule through March 3, 2025.

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