Farm-Level Cost Drivers of Salmonid Fish Health Inspections.

Regulatory costs on aquaculture farms have been shown to be of a magnitude that warrants additional analysis. The drivers of farm-level costs of fish health inspections were identified in this study from national survey data on U.S. salmonid farms. The greatest costs identified were related primarily to state fish health requirements for inspection and testing to certify that fish are free of specific pathogens prior to approval of necessary permits to sell and/or transport animals. Fish health inspection costs included laboratory testing, farm personnel time, veterinary fees, and shipping samples to laboratories, with laboratory testing and the value of farm personnel time being the most expensive components. Principal cost drivers were the number of tests and whether required sampling was farmwide or for each lot as identified by the collector. Farmers who primarily sold into recreational markets had greater fish health costs than farmers who primarily sold food fish because of the greater numbers of species and size-/age-classes of salmonids on their farms. Regulatory requirements to test all species and size-/age-classes on farms increased inspection costs by increasing the total number of tests, the total value of fish sacrificed, and shipping costs. Consequently, for farms with more than one species or more than one size-/age-class, annual farm-level testing was less costly than annual lot-based testing. Increased numbers of tests in a given year, although reported by only a few respondents, can increase costs dramatically and turn profitable farms unprofitable, even food fish farms. Smaller salmonid farms experienced disproportionately greater inspection cost burdens than did larger farms. The fish health inspection scenario of only one annual inspection of only the most susceptible species and size-/age-class showed a cost burden that did not generate economic distress, even on smaller salmonid farms. Other scenarios modeled (based on survey data) that included lot-based surveys of multiple species and size-/age-classes resulted in substantially greater fish health inspection costs that led to unprofitability for various farm sizes and business types. Study results suggest that implementing Comprehensive Aquaculture Health Program Standards might allow for risk- and pathogen-based reductions in the total number of inspections and fish sampled while maintaining equivalent or greater health status compared to current methods. American Fisheries Society-Fish Health Section Blue Book inspection methods are interpreted and applied inconsistently across states and generally yield lot- rather than farm-level health attestations because the history of testing results, risk assessment, and biosecurity practices are not typically taken into account. The cost effects of alternative fish health sampling and testing requirements should be considered in decisions and policy on fish health regulation.

Assessing the value of PCR assays in oral fluid samples for detecting African swine fever, classical swine fever, and foot-and-mouth disease in U.S. swine.

INTRODUCTION: Oral fluid sampling and testing offers a convenient, unobtrusive mechanism for evaluating the health status of swine, especially grower and finisher swine. This assessment evaluates the potential testing of oral fluid samples with real-time reverse-transcriptase polymerase chain reaction (rRT-PCR) to detect African swine fever, classical swine fever, or foot-and-mouth disease for surveillance during a disease outbreak and early detection in a disease-free setting. METHODS: We used a series of logical arguments, informed assumptions, and a range of parameter values from literature and industry practices to examine the cost and value of information provided by oral fluid sampling and rRT-PCR testing for the swine foreign animal disease surveillance objectives outlined above. RESULTS: Based on the evaluation, oral fluid testing demonstrated value for both settings evaluated. The greatest value was in an outbreak scenario, where using oral fluids would minimize disruption of animal and farm activities, reduce sample sizes by 23%-40%, and decrease resource requirements relative to current individual animal sampling plans. For an early detection system, sampling every 3 days met the designed prevalence detection threshold with 0.95 probability, but was quite costly. LIMITATIONS: Implementation of oral fluid testing for African swine fever, classical swine fever, or foot-and-mouth disease surveillance is not yet possible due to several limitations and information gaps. The gaps include validation of PCR diagnostic protocols and kits for African swine fever, classical swine fever, or foot-and-mouth disease on swine oral fluid samples; minimal information on test performance in a field setting; detection windows with low virulence strains of some foreign animal disease viruses; and the need for confirmatory testing protocol development.

Is there an economic incentive for farmer participation in a uniform health standard for aquaculture farms? An empirical case study.

The growth of aquaculture, both in terms of the volume of production and the diversity of species and production systems, has created challenges for effective animal health policies. This paper presents results of a case study of the costs to a sector of U.S. aquaculture in which producers raising fish that are sold and shipped live contend with widely differing requirements for testing and certification of aquatic animal health. These are compared to related costs under a proposed uniform standard. The uniform standard scenario assumes adoption by the majority of the industry of a non-regulatory surveillance and biosecurity program with veterinary oversight, as an alternative to the current complex regulatory environment based on administrative political districts rather than on risk of disease transmission. Farm-level cost data were obtained through a survey that captured 74% of the national volume of baitfish and sportfish production in the U.S. Reflecting recent joint industry/federal efforts to develop a non-regulatory national U.S. program to set and verify a uniform standard for aquatic animal health, seven scenarios were modelled to determine the potential benefits and costs of such a program. Results showed that the net benefit of a uniform standard, if adopted nationally, could result in an estimated annual savings of $6.6 million to the U.S. baitfish and sportfish industry, and an average savings of $81,175/farm (with a range of $17,851/farm to $265,968/farm). Such cost savings provide an incentive for producers to support the program. Moreover, development of a uniform standard has potential to move aquatic animal health policies from the current framework of political administrative units to one based on epidemiological approaches and sound science.

Replacement Beef Cow Valuation under Data Availability Constraints.

Economists are often tasked with estimating the benefits or costs associated with livestock production losses; however, lack of available data or absence of consistent reporting can reduce the accuracy of these valuations. This work looks at three potential estimation techniques for determining the value for replacement beef cows with varying types of market data to proxy constrained data availability and discusses the potential margin of error for each technique. Oklahoma bred replacement cows are valued using hedonic pricing based on Oklahoma bred cow data-a best case scenario-vector error correction modeling (VECM) based on national cow sales data and cost of production (COP) based on just a representative enterprise budget and very limited sales data. Each method was then used to perform a within-sample forecast of 2016 January to December, and forecasts are compared with the 2016 monthly observed market prices in Oklahoma using the mean absolute percent error (MAPE). Hedonic pricing methods tend to overvalue for within-sample forecasting but performed best, as measured by MAPE for high quality cows. The VECM tended to undervalue cows but performed best for younger animals. COP performed well, compared with the more data intensive methods. Examining each method individually across eight representative replacement beef female types, the VECM forecast resulted in a MAPE under 10% for 33% of forecasted months, followed by hedonic pricing at 24% of the forecasted months and COP at 14% of the forecasted months for average quality beef females. For high quality females, the hedonic pricing method worked best producing a MAPE under 10% in 36% of the forecasted months followed by the COP method at 21% of months and the VECM at 14% of the forecasted months. These results suggested that livestock valuation method selection was not one-size-fits-all and may need to vary based not only on the data available but also on the characteristics (e.g., quality or age) of the livestock being valued.

Market Impacts of Reducing the Prevalence of Bovine Respiratory Disease in United States Beef Cattle Feedlots.

Bovine respiratory disease (BRD) is a common endemic disease among North American feedlot cattle. BRD can lead to significant economic losses for individual beef cattle feedlot producers through mortality and morbidity. With promising new management and technology research that could reduce BRD prevalence, this study evaluates the potential impacts of a reduction of BRD in the US beef cattle feedlot sector. Using a multi-market, multi-commodity partial equilibrium economic model of the US agricultural industry, we evaluate the market impacts of reduced BRD to producers from various livestock, meat, and feedstuffs industries. We find that as morbidity and mortality is reduced, beef cattle producers experience losses due to increased supplies (lower beef cattle prices) and increased demand for feedstuff (higher feedstuff prices). Beef cattle processors see gains as the price of beef cattle is lower, whereas feedstuff producers gain from higher feedstuff prices. Producers in the allied industries (pork, lamb, poultry, and eggs) see a small reduction in returns as consumers substitute with less expensive beef products. Consumers see gains in welfare as the increase in beef cattle supply results in lower beef prices. These lower beef prices more than offset the small increases in pork, lamb, poultry, and egg prices. Overall, the potential economic welfare change due to management and technologies that reduce BRD is a net gain for the US society as a whole.

Estimation of risk management effects on revenue and purchased feed costs on US dairy farms.

Variations in milk and feed prices directly affect dairy farm risk management decisions. This research used data from the 2010 US Department of Agriculture-Agricultural Resource Management Surveys phase III dairy survey to examine how risk management tools affected revenues and expenses across US dairy farms. The survey was sent to 26 states and collected information on costs and returns to individual dairy farms. This research used the information from milk sales, crops sales, feed expenses, and farm and operator characteristics, as well as the use of risk management tools. Matching methodology was used to evaluate the effect of 5 independent risk management tools on revenues and expenses: selling milk to a cooperative, using a commodity contract to sell grain, feeding homegrown forage at a basic and intensive level, and use of a nutritionist. Results showed that dairy farms located in the Midwest and East benefit from selling milk to a cooperative and using commodity contracts to sell grain. Across the United States, using a nutritionist increased total feed costs, whereas a feeding program that included more than 65% homegrown forages decreased total feed costs. Results point to benefits from educational programming on risk management tools that are region specific rather than a broad generalization to all US dairy farmers.