FSA Reminds Producers of Livestock Indemnity Program Benefits

LINCOLN, Nebraska– Nebraska USDA Farm Service Agency (FSA) Executive Director Dan Steinkruger today announced that producers who suffer qualifying livestock losses due to natural disasters, including extreme heat and humidity, could be eligible for Livestock Indemnity Program (LIP) benefits.


“LIP, along with other livestock disaster assistance programs, was restored by the passage of the 2014 Farm Bill, which provides livestock producers with a vital safety net to help them overcome the damaging financial impact of natural disasters,” said Steinkruger.


LIP compensates livestock owners and contract growers for livestock death losses in excess of normal mortality due to an eligible adverse weather event, including losses due to floods, blizzards, disease, wildfires, extreme heat and extreme cold. For the current calendar year, eligible losses must have occurred on or after Jan. 1, 2016.


“A notice of loss must be filed with FSA within 30 days of when the loss of livestock occurred or became apparent,” said Steinkruger. “Adult livestock that die within 60 days of the date of the qualifying event will be considered eligible for loss benefits, however, producers have seven days to report the loss of a newborn animal.”


The LIP national payment rate for eligible livestock owners is based on 75 percent of the average fair market value of the livestock.


Within the past year, FSA has made a notable change to LIP regarding livestock owner eligibility. Steinkruger said the livestock owner does not have to have an interest in a farming operation in order to qualify for program benefits. The program requirement, beginning with this year, is that the producer only has to have an interest in producing agricultural products, which includes commercial livestock.


“The previous requirement created issues for livestock owners who didn’t necessarily own a farm, but who did have an interest in cattle in a feedlot setting,” Steinkruger said. “This rule change clarifies that those owners may be qualified to participate in LIP.”


Producers are urged to contact their local county FSA office to schedule an appointment to submit a notice of loss and application for payment. To locate a local FSA office, please visit http://offices.usda.gov.


Producers are encouraged to bring supporting evidence, including documentation of the number and kind of livestock that died, supplemented if possible by photographs or video records to document the loss, purchase records, veterinarian records, production records and other similar documents.


For more information on LIP and other disaster assistance programs, visit FSA online at www.usda.gov/disaster.