Interpretation Guideline: Valuation Policy

Background:

Section 4 of the "Act" describes the appointment and the responsibilities of a Valuer in conducting an investigation, assessing the extent and amount of damage and determining an award. This compensation is limited to a maximum dollar value for each class of livestock as stated in Regulation 731 section 2 of the "Act".

The calculation of the award is generally based on an estimate of the weight of the animal and the current market price. Additional information pertinent to the animal(s) being valued will increase this base price. eg. breeding stock, pregnant animals.

Exceptions to the above methodology are necessary in the case of young calves, lambs and kid goats which have not reached weaning age.

Recommended Procedure:

For Weaned Beef and Dairy Calves:

a) determine the award by estimating the weight and using the current price for the class of animal. Price information is available as given in "IV: Summary of Important Contacts", #2 on page 30.

For Young Calves (not weaned):

b) this option represents the minimum standard.
Beef calves are assumed to weigh 500 pounds at weaning age. Obtain the current market value price for a weaned calf as described in (a). Newborn calves and calves up to 1 month of age are to be compensated at 70 % of weaning value. If the market price of weaned calves is $1.70 per pound, then a 500 pound calf is valued at $1.70 x 500 =$850.

Newborn and calves up to 1 month of age will be compensated at 70 percent of the total value or 70 % x $850 = $595.00.

The value increases by 5% per month and reaches full value at 7 months of age. For example, a 2 month old calf is 75% of value, 3 months is 80%, 4 months is 85% and 5 months is 90% and 6 months is 95%.

For Weaned Lambs and Kids

a) determine the award by estimating weight and using the current price for the class of animal. Price information is available as given in "IV: Summary of Important Contacts", #2 on page 30.

For Young Lambs and Kids (not weaned):

b) this option represents the minimum standard.
As of May, 2001, market weight lambs and kid goats are valued at $120 based on an 80 pound lamb and $1.50 per pound.

Newborn lambs and kids are valued at 44% of the full value. Or 45% of the full market value, or 45% of $120 which is $54.00. The value increases by 5% per week and reaches full value at 12 weeks of age. For example, a lamb or kid from 4 to 5 weeks of age is valued at [ 45% +(5% x 4 weeks)] or 65% of full value, or 65% of $120 which is %78.00.

The following table shows the percent of full value for each week of age. The dollar value was calculated based on a $120 market lamb.

Additional information may be factored into the value. Pedigree, genetics, pertinent performance records, physical identification, invoices and or sales records and age should be considered in determining the value. Simply put. "what would the livestock owner have to pay to "replace" that animal in the herd?". The maximum compensation value applies to breeding stock.

| Top of Page |