US farm agency to pay farmers for milk loss due to bird flu

Illustration shows test tube labelled "Bird Flu" words and U.S. flag

By Leah Douglas

(Reuters) - The U.S. Department of Agriculture will soon begin compensating dairy farmers for the loss of milk supply due to bird flu-infected cows, the agency said on Thursday.

Bird flu has infected 132 dairy herds in 12 states since March. Farmers with infected cows can suffer financial losses from reduced milk production and the cost of veterinary care.

Though the overall U.S. milk market has not been negatively affected by the spread of the virus, "to the individual producer, it's difficult and devastating," Agriculture Secretary Tom Vilsack told reporters on a call.

The funding will compensate farmers with sick cows for 90% of lost milk production per cow, the agency said. Applications for the funding will open on July 1.

The USDA is working with states to research how the virus spreads among cows and is also in talks with two dozen companies over production of a bovine vaccine for bird flu.

Spread of the virus among cattle heightens the risk of infection in humans, though the risk to the public from the virus is low, federal officials have said. Three dairy farm workers have contracted avian flu since March, and all recovered after experiencing mild symptoms.

(Reporting by Leah Douglas; Editing by Bernadette Baum)