Livestock Indemnity Program-2014 Farm Bill

LIP provides benefits to eligible livestock owners or livestock contract growers for livestock deaths in excess of normal mortality caused by eligible loss conditions, including eligible adverse weather, eligible disease and by attacks by animals reintroduced into the wild by the federal government or protected by federal law, including wolves and avian predators. In addition, LIP provides assistance to eligible livestock owners that must sell livestock at a reduced price because of an injury from an eligible loss condition.

To be eligible for benefits, an individual or legal entity must be a citizen of the United States (U.S.); legal Resident alien in the U.S.; Partnership comprised of U.S. citizens; Corporation, limited liability corporation or company, or other organization structure established under State law; or an Indian tribe or tribal organization. An eligible livestock owner must have had the production and market risks associated with the agricultural production of livestock and who had legal ownership of the eligible livestock on the day the livestock died or were injured and under conditions in which no contract grower could have been eligible for benefits with respect to the livestock. To be eligible livestock, the livestock must have died in excess of normal mortality as a direct result of an eligible loss condition and no later than 30 calendar days after the ending date of the applicable eligible loss condition. An eligible contract grower must have interest in the livestock, not as owner but as a person or entity whose interest is in poultry or swine, as of the day of the eligible loss condition, a written agreement setting the specific terms, conditions and obligations of the parties involved regarding the production of livestock with the owner of eligible livestock, on the day the poultry or swine died, and a risk of loss in the animal. Eligible livestock for livestock owners are alpacas, adult or non-adult beef, beefalo, buffalo/bison and dairy cattle, caribou, chickens, deer, ducks, elk, emus, equine, geese, goats, llamas, ostrich, reindeer, sheep, swine, or turkeys. Eligible livestock for contract growers are chickens, ducks, geese, swine, or turkeys. The eligible livestock must have been maintained for commercial use as part of a farming operation before dying and on the day the eligible livestock died. An eligible loss condition includes an eligible adverse weather event, eligible disease, and eligible attack. Eligible adverse weather event means extreme or abnormal damaging weather that is not expected to occur during the loss period for which it occurred, which directly results in eligible livestock losses. An eligible adverse weather event must occur in the calendar year for which benefits are requested. Eligible adverse weather events include, but are not limited to, as determined by the FSA Deputy Administrator of Farm Programs or designee, earthquake; hail; lightning; tornado; tropical storm; typhoon; vog, if directly related to a volcanic eruption; winter storm; hurricanes; floods; blizzards; wildfires; extreme heat; extreme cold; and straight-line winds. Drought is not an eligible adverse weather event except when associated with anthrax, and mycoplasma bovis in bison, conditions that occur or are exacerbated because of drought and results in the death of eligible livestock. Eligible disease means a disease that is exacerbated by an eligible adverse weather event that directly results in eligible livestock losses, including, but not limited to, anthrax, cyanobacteria, (beginning in 2015 calendar year) and larkspur poisoning (beginning in 2015 calendar year) and mycoplasma bovis (beginning in 2022). In addition, eligible disease means a disease that is caused and/or transmitted by vectors and vaccination or acceptable management practices are not available, whether or not they were or were not implemented, that directly result in death of eligible livestock in excess of normal mortality, including but not limited to Blue Tongue, EHD, Theileria Orientalis and CVV. Eligible attack means an attack by animals reintroduced into the wild by the Federal Government or protected by Federal law, including wolves and avian predators, that directly results in either injured livestock sold at a reduced price or death of eligible livestock, in excess of normal mortality.

LIP payments for livestock death losses, adjusted for normal mortality, are calculated by multiplying the national payment rate for the applicable livestock category by the number of eligible livestock in that category times the producer’s share. The LIP national payment rate for eligible livestock owners is based on 75 percent of the average fair market value of the livestock. The LIP national payment rate for eligible livestock contract growers is based on 75 percent of the average income loss sustained by the contract grower with respect to the dead livestock. A contract grower’s LIP payment will be reduced by the amount of monetary compensation received from the owner for the loss of income suffered from the death of livestock under contract. For eligible livestock owners, LIP payments for injured livestock that are sold within 30 days of the date of an eligible loss condition at a reduced price due
to an eligible adverse weather event or eligible attack are calculated by multiplying the national payment rate for the applicable livestock category minus the amount that the livestock owner received for the eligible livestock in that category times the livestock owner’s share. If injured eligible livestock are sold for more than the national payment rate for the applicable livestock category, there is no payment.