USDA Adjusts Livestock Disaster Program to Aid Heat-Affected Producers

The USDA’s Farm Service Agency (FSA) announced today it is updating the Livestock Indemnity Program (LIP) payment rate to support livestock producers in the Midwest who have lost cattle to the extreme heat and humidity experienced this summer. To help indemnify producers to reflect a trend toward higher cattle weights in feedlots, the 2023 LIP payment rate for beef calves over 800 pounds will increase from $1,244 per head to $1,618, an increase of $374.

“The recent heat domes plaguing many parts of the country have proven to be unsurvivable for some animals and temperatures are not expected to let up any time soon. This is one of the latest, many examples of how a changing climate is creating immediate challenges for farmers and ranchers, and we’re finding that our emergency relief programs need to adapt accordingly,” said FSA Administrator Zach Ducheneaux. “Given these circumstances and the trend toward higher weights in feedlots, it became clear that USDA’s Livestock Indemnity Program payment rates were not reflective of the true market value for cattle. This change will better indemnify the investments producers have in the livestock they raise, and we will continue to find flexibilities where possible to help our farmers and ranchers in the wake of climate-related impacts.”

LIP provides benefits to livestock owners and some contract growers for livestock deaths exceeding normal mortality from eligible adverse weather events, certain predation losses and reduced sales prices due to injury from an eligible loss. Indemnity payments are made at a rate of 75% of the prior year’s average fair market value of the livestock.

Source: usda.gov

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