Livestock Indemnity Program (LIP)

Livestock Indemnity Program (LIP)  

This program may have additional incentives or benefits for those who are underserved. Learn more about our terminology.

 

What is this program?

This program provides payments for livestock deaths in excess of normal mortality caused by adverse weather or by attacks by animals reintroduced into the wild by the federal government.

 

How can I use this program?

• Overcome financial hardships resulting from livestock death due to the following:
  • Weather events (tropical storms, hail, blizzard, etc.)
  • Disease (anthrax, cyanobacteria, larkspur poisoning)
  • An attack by animals reintroduced into the wild by the federal government; or protected by law (wolves, avian predators)
• Overcome financial hardships resulting from having to sell livestock at a reduced price due to an injury caused by one of the circumstances mentioned above

 

Who or what is eligible and what are the eligibility requirements?

Livestock owners must do the following:

• Provide evidence that the eligible cause of loss not only occurred, but directly caused loss or death
• Have legally owned the livestock on the day the livestock died and/or were injured by an eligible loss condition

Livestock Contract Growers (Poultry or Swine only) must have the following:

• Possession and control of the eligible livestock
• A written agreement with the eligible livestock owner setting the specific terms, conditions, and obligations of the parties involved regarding the production of livestock

Note: In evaluating average adjusted gross income (AGI), an individual or entity is ineligible for payment under LIP if the average AGI of the individual or entity exceeds $900,000.

 

Eligible livestock must meet these requirements:

• Livestock must have died in excess of normal mortality as a direct result of an eligible loss condition or had injuries from the loss condition and were sold within 30 days at a reduced price.
• Livestock has been maintained for commercial use as part of a farming operation on the day they died.
• Livestock must NOT have been produced or maintained for reasons other than commercial use as part of a farming operation.
• Excluded livestock includes wild free-roaming livestock, horses and other animals used or intended to be used for racing or wagering; animals produced or maintained for hunting; and animals produced or maintained for consumption View eligible types of livestock.

Eligible loss conditions:

• An eligible loss condition includes any of the following that occur in the calendar year for which benefits are requested:
  • Eligible adverse weather event: A weather event determined by FSA and can include earthquakes, hail, lightning, tornados, tropical storms, typhoons, vog (if directly related to a volcanic eruption), winter storms, hurricanes, floods, blizzards, wildfires, extreme heat, extreme cold, and straight-line winds
  • Eligible disease: A disease that is made worse by an eligible adverse weather event that directly results in eligible livestock losses, including anthrax, cyanobacteria, (beginning in 2015 calendar year), larkspur poisoning (beginning in 2015 calendar year) and Mycoplasma Bovis in Bison (beginning in 2021)
    • Eligible disease means a disease that is caused and/or transmitted by vectors and vaccination, or when 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, CVV and Theileria Oreintalis.
  • Eligible attack: 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.

 

Are there any deadlines?

• Applicants must file notice of loss within 30 calendar days of when the loss is first apparent to the participant.
• Applicants must submit application for payment within 60 days after the calendar year in which the eligible loss condition occurred.

 

Is there anything else I should know?

• Payments for livestock death losses 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. View current year national payment rates.
  • Payment rates for owners are based on national payment rates that are 75 percent of the average fair market value of the applicable livestock as determined by USDA.
  • Payment rates for contract growers of poultry or swine will not exceed the rates for owners but are based on 75 percent of national average input costs for the applicable 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.
• Payments for injured livestock that are sold 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.

 

How do I apply?

Owners or contract growers who suffer livestock losses due to an eligible cause of loss must submit a notice of loss and an application for payment to the local FSA office that serves the physical location county where the livestock losses occurred.

To apply, you will need:

• A summary of all of the owner’s or contract grower’s interest in inventory of eligible livestock in that county for the calendar year.

• Contract growers of poultry or swine must submit a copy of the grower contract and any other supporting documents required for determining eligibility. Similar to requirements for owners, supporting documents must show evidence of loss, current physical location of livestock in inventory, and location of the livestock at the time of death.

 

 

 

Page last updated: May 2, 2023