Highly pathogenic avian influenza (HPAI) under current conditions poses a major risk to human and animal health. Efforts to contain the disease are therefore in national and global interest. As the most widely practiced control methods for poultry involve culling birds that are infected or in regions immediately around infected animals, the most common practice to ensure the cooperation of owners of birds is to compensate them for the culling of their animals to achieve this public goal.
All types of economic activity involve risk. These risks may take many forms. They may include risks relating to physical production, input and output prices, currency movements, institutional change, legal liability and personal circumstances. Agriculture is generally regarded as one of the more risky activities because of the price inelastic nature of demand and short run supply and its exposure to natural shocks. In this report we focus upon the risks for agricultural producers relating directly to prices and revenues.
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