The Department of Agriculture recently announced an advance notice of proposed rulemaking on a new approach to indemnity valuation and a new indemnity framework.  The advanced notice describes two structural changes to the indemnity regulations.


The first is the use of an annual indemnity value table to standardize the indemnification process and resolve discrepancies between disease programs.  Under the new approach, APHIS would collaborate with other USDA agencies, including the Farm Service Agency’s Livestock Indemnity Program, to develop USDA indemnity values and the methodology to determine them.  The values would be published online annually.


Second, the proposal describes an approach to standardize allowances for appraisal when an indemnity value cannot be calculated using the tables or when a producer elects to appeal the value based on extraordinary circumstances. This approach would resolve known challenges with indemnification based on fair market appraisal by an appraiser.


The public comment period is open through November 6.


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