Estimation of the financial reserves required by livestock disease compensation funds for rebates in the course of disease outbreaks using the example of Saxony-Anhalt (Germany)
Denzin, N.; Ewert, B.; Salchert, F.; Kramer, M.
Berliner und Munchener Tierarztliche Wochenschrift 127(1-2): 28-34
2014
ISSN/ISBN: 0005-9366 PMID: 24490340 Document Number: 676048
With certain restrictions, the federal states of Germany are obligated to financially compensate livestock owners for animal losses due to livestock diseases. If livestock disease compensation funds demand contributions from livestock owners for certain species in order to pay compensations, the federal states have to pay only one half of the rebate. The remaining 50% has to be financed through reserves of the respective compensation fund built up with the contributions. But there is no reference on how to calculate such financial reserves. Therefore, for the livestock disease compensation fund of Saxony-Anhalt (Germany), an attempt was made to estimate the required reserves.To this end, expert opinions concerning the expected number of affected holdings in potential outbreaks of different diseases were collected. In a conservative approach, assuming these diseases occur in parallel within a single year, overall costs as well as individual costs for altogether 25 categories and subcategories of livestock species were stochastically modeled.The 99.9th percentile of the resulting frequency distribution of the overall costs referred to a financial volume of about 23 million euro. Thus, financial reserves of 11,5 million euro were recommended to the livestock disease compensation fund.