Gustafson's Dairy, Inc. - Page 12

               Petitioner's dairy herd is at risk of suffering from                   
          diseases such as brucellosis, tuberculosis, and mastitis.  The              
          herd is also at risk of being exposed to contaminants such as               
          aflatoxin (contamination of feed).  Petitioner has never lost               
          cattle because of tuberculosis or aflatoxins.  Cows brought to              
          Florida are tested for brucellosis and tuberculosis.  Brucellosis           
          is a contagious disease.  Cows with brucellosis must be                     
          slaughtered.  About 1,300 of petitioner's 9,000 cows died of                
          brucellosis from March 5, 1974, to April 21, 1976, and about 200            
          of petitioner's other cows were afflicted by brucellosis.                   
               Petitioner received a slaughter price for each cow it culled           
          from its herd during the brucellosis outbreak in the mid-1970's.            
          During the years in issue, the slaughter price was about $400 per           
          cow, and the replacement cost was $950 to $1,050.  Petitioner               
          could also receive indemnities of $25 from Florida and an amount            
          unspecified in the record from the Federal government for each              
          cow slaughtered due to brucellosis.                                         
               Petitioner's herd was vaccinated for brucellosis from 1975             
          to 1993, and was quarantined by the State of Florida from the               
          mid-1970's to October 1988.  Although petitioner's herd was                 
          brucellosis-free in 1988, about 120 of its cows tested positive             
          for brucellosis from 1985 to 1989.                                          

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