010470 USDA to Pay for Diseased Livestock

Washington - The government encouraged farmers to report any signs of foot- and-mouth disease, promising Thursday to pay fair market value for any livestock killed as a result.

The virus, which is highly contagious, has devastated Britain's livestock industry this spring. Related outbreaks in France, the Netherlands and Ireland have been contained.

“If you don't get early detection and an early hit, we won't look like France, we'll look like England,” Agriculture Secretary Ann Veneman said.

Some banks have threatened to cut off credit to cattle producers because of concerns about a foot-and-mouth outbreak, according to the National Cattlemen's Beef Association.

Details of the compensation program are still being worked out between the Agriculture Department and the White House Budget Office. In addition to paying for livestock, the agency also may compensate farmers for additional expenses, such as the costs of disposal and disinfection.

Livestock producers also want compensation for income they would lose during a quarantine.

The department has broad legal authority to spend whatever money it needs to control an outbreak of animal and plant diseases. The money comes from a revolving fund, known as the Commodity Credit Corp., that is used for farm programs.

At a hearing of the House agricultural appropriations subcommittee, Veneman said that U.S. farmers can report the disease “with the full assurance that they will be indemnified.”

Foot-and-mouth disease has not been reported in the United States since 1929, but the latest outbreak in Europe has heightened fears that it could return.

On Thursday, the department banned the import of livestock and meat from Uruguay, the latest country in South America to report an outbreak.

David Huxsoll, the director of an agency lab that studies the disease, recently said the chances of a U.S. outbreak were “quite great,” given the amount people travel between the United States and Britain. Rep. Henry Bonilla, R-Texas, said Huxsoll's assessment was “somewhat alarming.”

Veneman deflected questions about Huxsoll's comment, saying that the department was doing everything it could to keep the virus out of the country. The department has banned imports of livestock and raw meat from the European Union and increased its inspection staff at international airports.

“We've had a lot of people spending a lot of time reviewing our programs at every level,” she said.

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