In the Know: What Ag Lenders Need to Know About Avian Flu
Everyone’s talking about record-high egg prices. But for ag lenders with poultry farmers in their portfolios, the real concern is avian flu and its financial impact. This highly contagious disease continues to disrupt operations, creating cash flow challenges and production stoppages.
In this blog, we’ll address key questions about avian flu, explore available resources for affected farmers, and discuss how ag lenders can support producers in navigating these financial uncertainties.
How widespread is avian flu?
As of mid-March 2025, highly pathogenic avian influenza (HPAI) A(H5) has been detected in more than 166 million commercial poultry flocks and other domesticated sources, according to the Centers for Disease Control and Prevention (CDC).
Because HPAI is highly contagious and often fatal, an outbreak can wipe out an entire flock within days. To contain the virus, producers have culled nearly 158 million birds, including 23 million in January 2025 and 18 million in December 2024, according to the Associated Press.
While culling helps prevent further spread, it also disrupts production for months. This causes significant financial strain for individual poultry farmers and leads to supply chain challenges across the industry.
What’s being doing to stop avian flu?
To minimize the spread, poultry farmers have invested millions in biosecurity measures aimed at preventing the virus from entering egg-laying facilities. These efforts include:
- Strict visitor restrictions
- Mandatory showers for employees before and after shifts
- Truck washing stations to prevent contamination
- Systems to deter wild birds from shared spaces
These biosecurity protocols have helped reduce farm-to-farm transmission, but they haven’t completely stopped the virus. Wild birds remain the primary source of infection, responsible for 83% of HPAI cases. As they land near or inside poultry facilities, the virus spreads quickly, causing rapid outbreaks among flocks.
The U.S. is also considering a vaccination program for egg-laying hens.
What’s financial impact on farmers
When an outbreak strikes a poultry operation, farmers must slaughter the entire flock. After that egg production comes to a standstill for months because a lengthy recovery process awaits:
- Clearing and sanitizing facilities to eliminate the virus
- Government inspections to ensure safety compliance
- Raising new birds, which require weeks of growth before they can start laying eggs
During this period, farmers generate no income while still facing significant operating costs — including facility maintenance, labor and biosecurity investments.
To support affected farmers, the USDA recently announced $1 billion in funding in addition to the $2 billion already allocated to combat avian flue which includes:
- Additional financial assistance for cleanup and disinfection of infected facilities
- Expanded biosecurity initiatives, including audits and grants
- $100 million for vaccine research and development
While this funding provides some relief, cash flow challenges remain, leaving many poultry farmers in need of additional financial support until production resumes.
As uncertainty continues, ag lenders play a critical role in helping producers navigate these challenges. The good news? Agri-Access is here to support ag lenders with the resources and solutions they need to assist their customers.
Connect with one of our Relationship Managers today to learn more.
