By Grey Moran for Sentient.
Broadcast version by Trimmel Gomes for Mississippi News Connection reporting for the Sentient-Public News Service Collaboration

As avian flu rapidly circulates in the U.S., Cal-Maine Foods, the nation’s largest egg producer, appears to be having a bumper year, bolstered in part by taxpayer bailouts in the multi-millions.

The company’s stocks recently soared to a record high, as its net sales rose by a staggering 82 percent last quarter. Cal-Maine Foods expanded its operations last spring, paying around $110 million in cash to acquire the assets and facilities of another egg producer, ISE America. Despite culling at least 1.6 million hens on infected farms last year, the poultry corporation is getting richer and bigger

U.S. taxpayers have given the poultry giant a lift. The company has received $44 million in indemnity payouts to compensate for bird deaths tied to the avian flu outbreak. Despite the company’s growth, Cal-Maine Foods is the fourth largest recipient of indemnity payments for the ongoing outbreak from the U.S. Department of Agriculture’s Animal and Plant Health Inspection Service (APHIS)’s indemnity program.

The compensation system, distinct from the agency’s program for livestock, pays poultry farmers and producers for the market value of the birds and eggs. It does not pay for birds that directly die from avian flu. It only pays for “infected or exposed poultry and/or eggs that are destroyed to control the disease,” — i.e. deliberately killed to prevent the spread of the virus. The agency also provides compensation for other virus control activities, such as destroying contaminated supplies and disinfecting a barn after an outbreak.

Nearly three years since the first H5N1 outbreak in U.S. poultry, the USDA has concluded that the agency’s compensation system has not worked as it intended. By bailing out poultry producers with few stipulations, the system has, inadvertently, lowered the economic risk of biosecurity lapses on farms, encouraging the virus’s spread. In other words, farmers have not been effectively incentivized to make changes to protect their flocks.

As the outbreak has continued to spread, the government bailout of the poultry industry has ballooned too. As of January 22nd, 2025, APHIS has doled out $1.46 billion in indemnity payments and additional compensation over the outbreak’s course, according to a figure provided to Sentient by a USDA spokesperson. This includes $1.138 billion for the loss of culled eggs and birds and $326 million for measures to prevent the virus’s spread.

A significant share — $301 million — of the indemnity payments have gone to just the top four producers, according to government spending data.

Jennie-O Turkey Store, based in Minnesota, tops the list for indemnity payouts: the popular turkey brand has received $120 million since the beginning of the H5N1 outbreak in 2022, according to government spending data. Herbruck’s Poultry Ranch, which supplies McDonald’s cage-free eggs, has received the second largest bailout at $89 million. Center Fresh Egg Farm, part of a group of farms owned by Versova, one of the largest U.S. egg producers, has received $46 million. (This data reflects the legally obligated amount of indemnity owed to each company, which means that the USDA may not have dispensed these payments in full yet.)

By comparison, when the first outbreak of avian flu swept the U.S. between 2014 and 2015, farmers and producers received just over $200 million in indemnity payments.

“The current regulations do not provide a sufficient incentive for producers in control areas or buffer zones to maintain biosecurity throughout an outbreak,” APHIS stated in December, which introduced new emergency guidelines in an attempt to remedy this incentive problem. 

One of the preferred methods farms use to cull birds is by sealing off the air flow to the barn and then pumping in heat or carbon dioxide. Known as Ventilation Shutdown Plus (VSD+), this is a cheap way to kill an entire flock by heat stroke or suffocation, and is approved by the USDA for indemnity payments only under “constrained circumstances.” The top 10 recipients of indemnity payments all used VSD+ to often exterminate millions of birds at once, according to APHIS records obtained by Crystal Heath, a veterinarian and the executive director of Our Honor, through a FOIA request.

By compensating farmers for VSD+, this system has helped make what many animal welfare advocates consider an unnecessarily cruel death part of the industry standard.

The American Veterinary Medical Association (AVMA) recently released a draft of new guidelines for depopulation, which notes when the heat fails, VSD+ can result in an “unacceptable numbers of survivors” — birds that are severely injured, but not yet dead, and then need to be killed by another means. Yet the AVMA’s draft guidelines, closely relied upon by the USDA, still include this method as an option.

Some animal protection advocates contend that poultry companies should not receive indemnity payments at all, regardless of biosecurity, arguing that the industry should be responsible for its own losses.

“Why should this high-risk business be bailed out?” Heath, a longtime critic of AVMA’s guidelines, tells Sentient. As an animal protection advocate, Heath has also been closely tracking indemnity payments throughout this outbreak. “What we’re seeing is the largest corporations are receiving the most in indemnity payments, and they’re using the most brutal methods of depopulation,” referring to the culling methods.

The bailout is set to only expand as H5N1 spreads, prompting the mass culling of more domestic flocks, in what has become the largest foreign animal disease outbreak in U.S. history. The egg industry continues to be roiled: over 20 million egg–laying chickens died from either culling or the virus in the final quarter of last year.

More recently, on January 17, 2025, HPAI was detected for the first time in a commercial poultry flock in Georgia, the top producer of poultry in the U.S., deepening concerns about the struggle to contain the prolonged outbreak.

Too Indemnified to Fail: How Payments Can Incentivize Risk

The indemnity system was designed to incentivize producers to adopt practices that help curb the spread of the virus. As APHIS states, the payments are intended to “encourage prompt reporting of certain high consequence livestock and poultry diseases and to incentivize private biosecurity investment.” Biosecurity measures include a range of practices to prevent disease outbreaks, from latching dumpster lids and disinfecting equipment to more expensive measures, like installing netting and screens on barns to deter wild birds.

These biosecurity measures are especially critical given that H5N1 is most commonly introduced to poultry flocks through wild birds, according to a 2023 epidemiology analysis conducted by APHIS. The virus’s transmission from wild birds can happen either directly, or indirectly through contaminated feed, clothing and equipment.

By sheltering producers from risk, researchers have observed that indemnity payouts can, under some circumstances, inadvertently encourage lapses in biosecurity, enabling the spread of disease. And this can potentially create a system where farms are too indemnified to fail — the risks of operating a business highly susceptible to disease are absorbed by the government.

“What we are finding is that ‘unconditional indemnity’ disincentivizes livestock producers to adopt biosecurity because they know that if the disease strikes their system then they would be indemnified,” Asim Zia, a professor of public policy and computer science at the University of Vermont who researches livestock disease risk, tells Sentient. According to Zia, “unconditional indemnity” means indemnity payments with next-to-no requirements to qualify.

It remains to be seen whether APHIS’s new interim guidelines — which will require that some high-risk producers successfully pass a biosecurity audit prior to receiving indemnity — will be enough to remedy this issue and encourage producers to change. Unlike the previous system, the new audits will include a visual inspection of the premises, either virtually or in-person. However, the scope of the new rule is limited to large-scale commercial poultry facilities that have been previously infected with HPAI, or that are moving poultry onto a poultry farm in a “buffer zone,” a higher-risk region.

Other large-scale commercial facilities will still follow the earlier rule’s more lenient audit process. This requires an audit of a producers’ biosecurity plan on paper — not an inspection of the actual poultry farm — every two years. It has been remarkably easy for farmers to pass this audit: the failure rate of this program was zero, according to APHIS, which made it so there were effectively no strings attached to the payouts. And smaller-scale poultry operations are entirely off the hook, exempt from both rules, and even from developing a biosecurity plan.

In the past, APHIS has repeatedly bailed out many of the same poultry businesses, spending $227 million on indemnity payments to farms that have been infected with H5N1 multiple times. This has included 67 poultry businesses that have been affected at least twice, and 19 companies that have been infected at least three times, according to the agency’s own records.

APHIS has not released the names of the companies that have been repeatedly infected, though the indemnity payments provide a glimpse into this.

Take Cal-Maine Foods’ poultry farm in Farewell, Texas. On April 2, 2024, Texas’s Commissioner of Agriculture Sid Miller announced its flock tested positive for H5N1, requiring the culling of 1.6 million laying hens and 337,000 pullets. The very next day Cal-Maine Foods, headquartered in Mississippi, received an indemnity payment of $17 million for HPAI detected on the Texas operation, according to government spending data.

The Poultry Industry’s Risky Expansion

Last November, Cal-Maine Foods’ executives joined other business leaders across industries at an annual investment conference, ringing in the year on an optimistic note. As avian flu decimated flocks, the company’s top executives were focused on the future.

“We still think there’s going to be good opportunity to grow,” Max Bowman, Cal-Maine Foods’ vice president and CFO, told business leaders. “We got a playbook for the whole market. And so right now, things are great, but we think we can continue to build this company,” which, as it stands, controls one-fifth of the domestic egg market in the U.S.

The company is already in the process of building five new cage-free facilities, adding 1 million hens to their flock, in Florida, Georgia, Utah and Texas.

Bowman, Cal-Maine’s Vice President, did not reply to Sentient’s request for comment.

Other poultry companies are expanding too. For instance, Demler Farms in San Jacinto, California is building a triple-story egg operation right next to a dairy farm, which is also susceptible to the avian flu now that it has spread to cattle. Adding to this risk, the San Jacinto Valley is a critical habitat for migratory water birds, the primary hosts of avian flu.

Most of California’s cases of avian flu in poultry have been clustered along this water bird migratory route, known as the Pacific Flyway. Yet this appears to not be enough of a deterrent for Demler Farms’ expansion. As Heath observed, this risk is softened by the indemnity payment system, ready to bail out infected poultry farms by the millions.


Grey Moran wrote this article for Sentient.


get more stories like this via email

By Gabriella Sotelo for Sentient.
Broadcast version by Suzanne Potter for California News Service reporting for the Sentient-Public News Service Collaboration

As egg prices continue to skyrocket across the United States, some consumers are looking for alternative ways to secure affordable eggs, including turning to their backyard. Last month, U.S. Secretary of Agriculture, Brooke Rollins, penned a commentary outlining her plan to help "lower egg prices." Among her proposals - such as vaccinating chickens and reassessing California's Proposition 12, which tightened animal welfare laws - there was also a nod to raising backyard chickens.

In her commentary, Rollins writes that part of the plan is "to make it easier for families to raise backyard chickens." There was no expansion on this point, however, outside of a sentence in the USDA release of the plan promising to "minimize burdens on individual farmers and consumers who harvest homegrown eggs." A spate of articles also suggests the notion is picking up steam. Yet even though the idea may seem like a potential solution to rising egg prices, research suggests that keeping chickens for eggs may just bring the risks of avian flu to your backyard. In short, because your backyard is not protected from wild birds.

"The more birds that you have, especially when they kind of overlap with waterfowl habitat, for example, the increased risk you're going to have [of bird flu]," Maurice Pitesky, associate professor and expert in poultry disease modeling at the UC Davis School of Veterinary Medicine, tells Sentient.

The increased risk applies to industrial egg operations. Nearly 99 percent of farm animals in the U.S. are raised on factory farms - operations where animals are crowded together, often in unsanitary conditions. These settings are breeding grounds for diseases like bird flu, as the density and poor care make it easy for viruses to spread quickly. But it's not just factory farms that are at risk. In the past year, bird flu outbreaks have made headlines across the United States, and backyard chickens have not been immune to its reach.

Backyard Flocks Impacted

Over the last 30 days, 51 backyard flocks across the U.S. have confirmed cases of avian influenza, compared to 59 cases in commercial operations, as of March 3. While the number of affected backyard flocks is slightly lower overall, it's important to remember that the risk to smaller, home-raised flocks remains significant, primarily because the disease is often spread through wild birds - including their droppings and saliva - who can easily get to a backyard flock.

Wyoming recently reported its first human case of bird flu, which is believed to have been contracted from exposure to a backyard flock. The first severe case of avian flu in the U.S. occurred in December 2024 in Louisiana, where it was determined that the person had been exposed to sick and dead birds from a backyard flock. This person also became the first person in the U.S to die from the virus.

"This case underscores that, in addition to affected commercial poultry and dairy operations, wild birds and backyard flocks also can be a source of exposure," the Center for Disease Control has stated about this case.

Bird flu can spread to people through various routes in a backyard farm, according to the CDC, including direct contact with infected birds, their droppings and contaminated equipment.

The Spread: Wild Birds and Backyard Flocks

It's tempting to assume that backyard chickens are safer from bird flu than large commercial farms due to their smaller flock size and less crowded living conditions. But this assumption overlooks the critical role of wild birds in spreading the virus.

The virus is frequently carried by wild birds, many of which are migrating across the country. For backyard chicken keepers, this poses a serious risk, as wild birds can easily come into contact with their flocks, potentially bringing the virus with them.

Benjamin Anderson, an assistant professor in the Department of Environmental and Global Health at the University of Florida, told Sentient in an email that wild birds, particularly ducks and geese, are the main carriers that can introduce the flu into backyard flocks. Outbreaks are also more concentrated along migratory bird flyways, Anderson noted, with four major routes across the U.S.

A 2021 study on avian flu transmission pathways found that flocks near or in contact with waterfowl and migratory birds are at a higher risk of infection. Although the study primarily focuses on commercial farms, its insights are also relevant to backyard operations - in essence, the researchers found that the virus can spread more widely when chickens aren't properly isolated from these outside threats. Infected birds can release the virus through their saliva and feces - in other words, exposure doesn't require direct contact with a backyard chicken.

Though backyard chickens are often not as crowded together as chickens raised commercially, birds raised in backyards are vulnerable to bird flu thanks to the lack of strict biosecurity regulations. Unlike commercial farms, which are at least required to follow certain guidelines to prevent outbreaks (such as regular testing and isolating infected animals), there is no oversight or enforcement for smaller, home-raised flocks.

With backyard bird flocks, says Pitesky, "their biosecurity on average is not ideal." There are a number of reasons why that can be the case, including a lack of "adequate fencing." It can even be as simple as the hobbyist may be pressed for time. "People have lives," says Pitesky. To keep backyard chickens safe, Pitesky says, "it takes some time and energy and money."

Backyard chicken keepers may not be aware of the measures they should take to minimize risk of exposure. A 2024 survey study in the UK of 1,550 poultry keepers found that not all backyard poultry owners were following biosecurity measures mandated by the government. The researchers found that some poultry keepers were unaware of what was required of them or faced barriers such as expenses, fewer carers for the birds and other welfare concerns.

The CDC has issued guidelines for backyard chicken owners to follow, such as restricting human access to their chickens, keeping them in enclosed spaces and minimizing exposure to wild birds. But if backyard chicken keepers do not implement these protocols effectively, the birds are left exposed to the virus.

Should You Raise Backyard Chickens During a Bird Flu Outbreak?

Anecdotally at least, Anderson has found that more people are interested in having backyard chickens these days, especially with high egg prices. And though both Anderson and Pitesky see the appeal of having backyard flocks, they also point to the risk associated with keeping them.

It's crucial to understand that keeping backyard chickens during an outbreak requires significant research, preparation and strict adherence to CDC guidelines. The CDC recommends wearing personal protective equipment (PPE) when handling sick or dead birds, cleaning and disinfecting contaminated areas and avoiding stirring up dust or bird waste that may spread the virus. In an email to Sentient, Anderson writes "people should take necessary steps to learn how to raise poultry safely and according to local and state rules."

However, this guidance quickly becomes complicated - some infected birds (especially those that are infected with a low pathogenic strain of bird flu) may not show symptoms. This strain can then mutate into the highly pathogenic version. As a result, flock owners may not realize they need PPE or take proper measures when dealing with asymptomatic birds. They may end up spreading the virus unwittingly.

The Bottom Line

Though the current risk of contracting bird flu remains low for most of the public, the middle of a bird flu outbreak may not be the best time to start keeping backyard chickens. It may sound appealing to be able to source "free" eggs from your backyard, but the reality is that keeping backyard chickens safe from bird flu requires time and money. And ultimately, raising chickens in a backyard doesn't eliminate the risk of spreading the virus, and could even exacerbate the problem if you don't take the proper precautions recommended by the CDC.

As for Secretary Rollins' plan to make raising backyard chickens easier for homeowners, the details remain unclear. Sentient reached out to the USDA for more information on how her plan addresses these concerns, but has yet to receive a response.


Gabriella Sotelo wrote this article for Sentient.


get more stories like this via email

Industrial farming practices could be boosting the spread of bird flu.

Avian influenza has been detected in poultry across the country, including in North Carolina, where 3.3 million birds had to be culled because of the disease at one farm alone in January.

Rania Masri, co-director of the North Carolina Environmental Justice Network, said concentrated animal feeding operations used for poultry are a breeding ground for disease.

"CAFOs by design amplify the formation, the mutation and the spread of new viruses," Masri explained. "Which can very simply and quickly transform into a full-blown epidemic."

Masri pointed out industrial farms in North Carolina disproportionately affect low income communities and communities of color. Her organization signed a letter with other public interest groups calling for more transparent data from the Centers for Disease Control and Prevention. The North Carolina Environmental Justice Network is also calling on the state to be more transparent with its data.

Craig Watts, a farmer and director of the contract grower transition program for the Socially Responsible Agriculture Project, said diseases like bird flu at large industrial operations can create bottlenecks, such as during the COVID-19 pandemic when farms did not have workers and had to kill their birds.

"While they're killing those birds in the field, now our shelves are empty," Watts observed. "If you have smaller, more localized, regional, you might have an issue in, say, North Carolina but maybe it wouldn't affect Nebraska like a breakdown in the industrial system will."

Masri believes the control of the industry by a small handful of corporations is bad for democracy.

"The only thing that the industrial farming is good for is the shareholders of these mega-corporations," Masri contended.


get more stories like this via email

A tragic case of neglect that claimed the life of a senior dog in 2021 is now driving change in Michigan, as lawmakers recently introduced "Buddy's Law" to protect animals. The Bipartisan bills aim to close a loophole that hinders authorities from rescuing animals stranded in extreme weather without access to adequate shelter. The bills stalled last year.

Rep. Penelope Tsernoglou, D-East Lansing, reintroduced the legislation last week, alongside Republican Rep. Joseph Aragona, R-Clinton Township and Rep. Brian BeGole, R-Antrim Township. The effort gained momentum after petitions from citizens sharing the story of Buddy, who froze to death after being left in the cold.

"If we can pass on something like this, this will go a long way, allowing our animal control and humane organizations, as well as our law enforcement, to get those dogs inside," Tsernoglou said.

Adequate shelter for dogs must be weatherproof, insulated and elevated to protect against the elements, while allowing enough space for comfort and movement. "Buddy's law" is now in the Judiciary Committee for review.

The bills expand the current definition of "shelter" to include "insulation and protection from the cold and damp." Tsernoglou stresses that she and her colleagues carefully designed the legislation to empower authorities to take action when needed.

"Certain standards have to be met," Tsernoglou said. "So, I mean these were things that we worked on with various humane organizations, as well as animal control officers to make sure that we were putting the right language in there."

Michigan residents are encouraged to report suspected animal abuse or neglect to local authorities or animal welfare organizations.


get more stories like this via email