The United States Department of Agriculture’s Animal and Plant Health Inspection Service (APHIS) is updating its indemnity calculator formula for laying hens, effective October 1, 2016. The updated formula was developed by USDA’s top economists and will more closely resemble a fair-market transaction. It will more quickly align with changes in producer returns.
The new calculator addresses concerns raised by egg layer producers following the 2014-2015 outbreak of highly pathogenic avian influenza (HPAI). APHIS has worked to address these concerns and make the calculator more transparent.
The new calculator determines fair market value based on net farm income ratio, which is the amount of net income generated per dollar of farm revenue. The calculator will be updated on a quarterly basis.