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Exotic Disease Compensation Review: International Case Studies Project - SE4308

Prevention and control of veterinary risks are a main concern of public and private decision-makers at farm, national, European and international level. Controlling an outbreak of an exotic disease means taking action on infected farms. However, other farms can be affected by measures taken by Competent Authorities as well (e.g. movement bans, preventive culling, and vaccination). Outbreaks of exotic disease can cause substantial direct and indirect losses. Direct costs relate to the control of the outbreak and comprise costs associated with culling of infected animals or destroying of infected plants. Indirect costs relate for example to trade restrictions that are prominent indirect costing components. International market access for susceptible species and their products is restricted. Adverse impacts are also incurred upstream and downstream along the value chain and in other sectors like tourism or other services.
Cooperation between government and farmers is essential to ensure a quick control and eradication of the disease in the country. To ensure this cooperation, farmers in the EU and most other countries are compensated or partly compensated for losses they encounter when confronted with restrictive measures. Besides the common practice (e.g. in England) that public money is used for this compensation in a number of countries to finance the compensation of affected farmers public private partnerships (PPPs) have been established. The PPPs that are currently present all differ in structure and it took time to establish them. These PPPs were established after large-scale and extremely costly outbreaks of highly infected epidemic livestock diseases in these countries. A PPP has the goal of raising the funds for compensation of farmers for part of the losses suffered during an outbreak and control of an exotic disease. Additional goals of a PPP are to raise more awareness, reduce risk exposure, provide incentives for rapid disclosure and increase support of control strategies if outbreaks occur. In a Public Private Partnership, farmers and national governments decide how costs and responsibilities are shared. An important reason for farmers to participate in a CRSS is this responsibility sharing part. Implementing a PPP requires careful preparation, negotiations and trust building. It is unlikely that there will be a ‘one size fits all’ solution to cost sharing. This implies the need for a systematic approach if a country wants to implement a PPP.
England is considering the establishment of a PPP as part of a compensation scheme for exotic diseases. Therefore DEFRA is interested in research evidence on how compensation or pay-outs for culled animals in case of an outbreak of exotic disease are organised in six case study countries, with particular reference to the balance of responsibility and funding between animal keepers (farmers and non-professional) and taxpayers and how well each system encourages positive disease risk management by animal keepers.
The ultimate goal of this project is to give DEFRA the information to make an informed decision on developing a compensation scheme that meets the guiding principles of Defra. The study will consists of 6 case studies of compensation schemes Belgium and five other countries. By using these country cases a number of relevant aspects of the compensation funds will be covered.
The research is organised in three phases/work packages (WPs) as suggested by DEFRA.

• Phase 1: Planning of the study and literature review (inventory of already accessible information)
• Phase 2: New research to collect missing information
• Phase 3: Provision of final case studies and a final summary report that interprets and evaluates findings
Time-Scale and Cost
From: 2014

To: 2015

Cost: £68,515
Contractor / Funded Organisations
LEI Wageningen UR
Animal Diseases              
Animal Health              
Economic Research              
Social Research