Dairy farmers in California have been dealing with bird flu in their cows and the ensuing financial losses since late August. With the majority of the state’s dairies affected, it’s no small matter.
On Dec. 18, California Gov. Gavin Newsom declared a state of emergency to streamline and expedite the state’s response to contain and mitigate the spread of the virus.
While the state’s efforts are focused on testing, monitoring and education, there are USDA programs to help farmers mitigate financial losses.
When a herd goes into quarantine, dairy producers can receive $2,500 per day per dairy from USDA’s Animal and Plant Health Inspection Service.
That assistance is for things such as labor costs and veterinary fees on a reimbursable basis, said Anja Raudabaugh, executive director of Western United Dairies, which represents more than 75% of the milk produced in the state.
Biosecurity costs
Producers can also receive up to $8,000 per dairy to install biosecurity equipment, such as a pasteurizer to pasteurize milk from affected dairy cows to feed the dairy’s calves, she said.
The other assistance comes from USDA Farm Service Agency through the Emergency Livestock Assistance Program. That pays about $375 per cow for affected milk production.
But it’s only a one-time payment. So if a farmer has 1,000 cows and enrolls 500 cows in the program, he can’t re-enroll those cows the next month, she said.
“It’s not nothing, it’s actually been very, very helpful because financially this has been devastating to a few dairies,” she said.
“But what’s really impacting the dairies’ bottom line on this, in addition to the labor and keeping the cows alive, is the long-term milk production loss,” she said.
Milk loss
Milk production from recovered cows is coming back at 60% to 70% of pre-flu production, she said.
The $375 one-time payment per cow helps, but if milk production from 20% of a farmer’ herd has dropped 30% to 40% he’s going to have a hard time with an already razor-thin margin, she said
There is also a proposal involving livestock indemnity.
“This is something that the chicken producers are getting right now to depopulate,” she said.
Because of that long-term milk production issue, a lot of cows that have recovered from the virus are going to slaughter. Farmers who have to cull those cows are getting a fraction of what they’d normally get to sell that cow for beef.
Cull prices
Cull cows can only go to the beef market if the dairy comes out of quarantine, and 735 dairies — almost 75% of the state’s dairies — are under quarantine. If the dairy is under quarantine, cull cows have to go into rendering.
A cow going to the beef market might bring $1,600 per head. Under the current situation, farmers might get $500 to $800 a head for a cow that goes to rendering — or they might get nothing, she said.
“It’s almost a straight loss in a lot of cases. So that part’s been really tough,” she said.
Western United Dairies is proposing an indemnity payment for the difference between what the farmer would normally receive and what he is receiving for a cow that has to go into rendering.
“That would be very, very helpful because of the amount of culling we’re having to do. So that’s something you’ll see me continue to press on,” she said.
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