Producer perceptions of US livestock indemnity policy

Objective: Livestock disease management is crucial for producers. To control and eradicate disease, the US government 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' preferences regarding livestock indemnity policy to better understand ordered preferences for any changes in the future. Materials and Methods: Through a ranked-ordered probit model, we analyzed producers' rankings of 4 different types of indemnity from an online producer survey. Results and Discussion: Based on the responding producers, the most preferred method of livestock indemnity 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 policymakers with information on producers' opinions for compensation after a disease outbreak. These insights allow legislators to consider producers' preferences when updatmanagement in the future.