German Animal Disease Compensation Funds (ADCF) as Effective Tools for Safeguarding Animal Holders
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1 Tierseuchenkasse Rheinland-Pfalz Anstalt des öffentlichen Rechts German Animal Disease Compensation Funds (ADCF) as Effective Tools for Safeguarding Animal Holders Roland Labohm ADCF Tierseuchenkasse Rhineland-Palatinate, Germany Kiew, 2016/06/30
2 The 16 Federal States of Germany
3
4 Tierseuchenkasse Rheinland-Pfalz Anstalt des öffentlichen Rechts EU Veterinary fund 2015/ , Dr. Roland Labohm
5 Tierseuchenkasse Rheinland-Pfalz Anstalt des öffentlichen Rechts EU Veterinary fund , Dr. Roland Labohm
6 Tierseuchenkasse Rheinland-Pfalz Different compensation schemes Anstalt des öffentlichen Rechts for livestock epidemics 1. Public governmental funds (state budget) 2. Mutual funds, public-private financing (NL, DE) 3. Statutory schemes (NL, DE) 4. Non-statutory schemes 5. Compulsory fund (NL, DE) 6. Voluntary schemes 7. Insurances 1. Subsidised 2. Non subsidised The current systems DO NOT cover all costs incurred by farmers: Direct (in some cases farmers contribute/bear costs) Indirect (in all cases farmers bear costs)
7 Tierseuchenkasse Rheinland-Pfalz Anstalt des öffentlichen Rechts Types of Losses and Payment to Funds Direct losses - mainly compensated Destroyed animals, organisational costs (e.g. culling, disposal, transport) Indirect or consequential losses scarcely compensated, privately insurable Business interruption, losses related to restricted areas, price declines, costs of emergency vaccination etc. Ex ante payment - pool building within a sector Ex post payment after an outbreak Indirect Direct
8 Animal Disease Compensation Germany Legal Basis Regulation (EU) 652/2014 (repealing Council Decision 2009/470/EC) Guidelines for member states for EU funding of veterinary emergency measures SANCO German Animal Health Act of Implementation laws of the Federal States Bylaws of ADCF Tierseuchenkassen for levies voluntary benefits etc.
9 ADCF Germany 15 ADCF Tierseuchenkassen as public law corporations (statutory) Participation compulsory ADCF seperately for Horses, donkeys, mules Bovines Pigs Sheep, goats Poultry Fishes Bees 20 Animal Health Act Contributions are not mandatory for Horses, donkeys, mules Goats Fenced game Poultry Bees Fishes If ADCF cannot be run economically Thus: Compensation payment 100% by government
10 Tierseuchenkasse Rheinland-Pfalz Anstalt des öffentlichen Rechts Benefits of German ADCF Benefits Mandatory core business according to Animal Health Act In case of disease outbreaks and compusory culling: Compensation Culling costs Disposal Voluntary business according to implementation law of federal state and bylaws Costs of e.g.: Carcass disposal Vaccination programmes Monitoring programmes Eradication programmes Animal health services Disease preparedness Preventive measures
11 Voluntary Benefits of German ADCF Aids for e.g. Carcass disposal/ rendering in peacetime Vaccination programmes Animal losses Disease control and eradication programmes for communicable diseases Laboratory tests Animal health services Farmer`s education Research ADCFs are free in setting up voluntary aids, if in compliance with EU Competition Law Aids must undergo notification at the EU COM
12 Flow of German ADCF compensation Tierseuchenkasse Rheinland-Pfalz Anstalt des öffentlichen Rechts Livestock holder Compensation application County veterinary office and reimbursement Compensation application Compensation payment ADCF Tierseuchenkasse Reimbursement claim 50 % Reimbursement Competent State Ministry Cofinancing application Federal Ministry of Agriculture Co-financing application 50 % Reim burse ment EU
13 Tierseuchenkasse Rheinland-Pfalz Anstalt des öffentlichen Rechts Organisation Federal State Ministry Administrative Board Administration County veterinary office Animal holder ADCF Germany Function Legal and technical supervision Authorisation of budget, bylaws, levies Decides budget, bylaws, reserves, disease programmes Elects chairman Collection of contributions, budget preparation, compensation and benefit processing and payment, drawing bylaws, meetings etc. Fighting epidemics locally, Preparation, control, and forwarding of compensation applications Reporting number of animals, disease suspicion, contribution payment, preventive measures, best farming practice
14 Members of Administrative Boards ADCF Germany Animal holders Government representatives Veterinary officials Farmer associations Field veterinarians Representatives of research or investigation offices Tierseuchenkasse Rheinland-Pfalz Anstalt des öffentlichen Rechts
15 Tierseuchenkasse Rheinland-Pfalz Anstalt des öffentlichen Rechts Calculation of levies Not according to actuarial mathematics but Need of previous year For compensations For voluntary benefits Budget Amount of fund reserves Epidemic situation Calculation of fund reserves Epidemiological modelling Roland Labohm, IAK 2014
16 Tierseuchenkasse Rheinland-Pfalz Anstalt des öffentlichen Rechts ADCF Germany Levies 2016 (Euros per animal) Rhineland- Palatinate Lower Saxony Saxony Bavaria Cattle * 5.70 Horse ** 0.90 Pig 10 / Holding * 0.80 Sheep/ Goat 0.50/ Poultry No ADCF * Age dependent ** Diferentiation Horse/ Pony
17 Animal Valuation in Germany Assessment of actual market value at time of slaughter/ death Competent experts differ between federal states Veterinary officials Sworn experts Teams of experienced independent farmers Value influenced by: Current quotation, performance,milk yield, weight, pregnancy, age, breeding values Value of animal often assessed by computer program In case of dispute the animal holder has the right for another assessor and evaluation. Roland Labohm, IAK 2016
18 Tierseuchenkasse Rheinland-Pfalz Anstalt des öffentlichen Rechts Animal Valuation- Maximum Rates Maximum rates of compensation pursuant to 16 of German Animal Health Act: Horses 6000 Cattle 4000 Pigs 1500 Fenced game 1000 Sheep/ goats 800 Poultry 50 Bees 200 e per colony Fishes 20 per kilogram
19 Financing ADCF Levies/ contributions of animal Holder Contributions of the industry (meat, dairy) State subsidies Fixed In disease outbreaks Co-financing of EU??? Roland Labohm, IAK 2015
20 ADCF Pros Better prevention - provide incentives for riskreducing behaviour (enhancing biosecurity, early reporting etc.) Avoid risks for State budget - Balance distribution of costs and responsibilities Maximise effectiveness and efficiency of eradication and prevention of animal diseases Simple and clear rules for financing
21 ADCF Pros Ensure economic sustainability of farming business Coherence with EU policies and EU international commitments (WTO) Incentives encouraging from all parties involved (Possibility of covering indirect losses)
22 Ukrainian ADCF Goal? Establishment of extra-budgetary ADCF with few extra expenses by using existing administrative structures and expertise for operating an accumulative fund
23 Conclusions ADCF/ AHF well functioning organisations in Germany High acceptance in the agricultural sector Reliability in peacetime and calamity Important part of disease prevention Helps reducing budgetary problems of States Never copy the German system it is costly and complicated! Use your existing structures!
24 Thank you Any questions?? Links to websites of all German ADCFs: Rhineland-Palatinate
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