USDA updates value of calf payment under LIP program | TSLN.com
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USDA updates value of calf payment under LIP program


Producers who lost young calves in 2022 may benefit from an update to the USDA program that reimburses them for weather related calf deaths.

Actually all producers across the country whose cattle die from qualifying weather-related events will find that the compensation rates have increased.

Marcy Svenningsen, North Dakota FSA Executive Director, said she recently heard that the program will now compensate producers who lost (or will lose) calves weighing 0-399 pounds at the rate of $474.38. The value is retroactive – starting Jan. 1, 2022 and will remain in place for the duration of 2022.



The LIP program is meant to pay 75 percent of the value of livestock that are lost in certain weather related catastrophes including blizzards. The amount of $474.38 is USDA’s determination of that value.

Through 2019, all calves under 400 pounds were valued the same. In 2020, USDA updated the program to add a category for calves 250 pounds and less, with a significantly smaller value being placed on them. Calves weighing 250 pounds or less had been valued at $175.27, which many producers and producer groups including I-BAND, the North Dakota Stockmen, the North Dakota Farmers Union criticized. These organizations, along with the North Dakota state FSA office asked USDA to update calf values to better reflect the value of a young calf, or maybe the value of that calf when weaned.



This update is more representative of the value of the calves that North Dakota producers lost in the blizzards and other recent weather events, said Svenningsen.

“We’re pretty excited to get this news,” she said. “We worked hard on this to help our producers out.”

Svenningson points out that blizzards aren’t the only eligible weather events that producers might be able to be compensated for. Calves lost in the recent heat wave could also qualify.

The deadline for filing a “notice of loss” from the April blizzards has already passed, she said. Although producers needed to file this “notice of loss” within 30 days of the loss, the deadline to submit the actual paperwork with documentation of the loss is March 1, 2023. That is the deadline for all 2022 LIP payment requests.

Svenningson said that if a producer didn’t file a notice of loss yet, he or she may petition the county committee for acceptance of a late notice – but she recommends only doing this if the producer has a very compelling reason such as a serious illness or injury during or immediately following the weather event which prevented him or her from filing the notice of loss.

The Independent Beef Association of North Dakota was pleased with the LIP update report.

“The April winter storms that rolled through North Dakota one after another left our cattlemen and cattlewomen with extreme losses, most occurring in the under 250 lbs. weight class. Each calf they were unable to raise to weaning will reduce their annual income by $1000-$1200. Many ranchers have already paid the expenses to raise those lost calves until weaning. The financial outlook caused by these storms were catastrophic,” said their spokesman in a news release.

See more details here.

More information on LIP:

 

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, if the winter storm lasts for three consecutive days and is accompanied by high winds, freezing rain or sleet, heavy snowfall and extremely cold temperatures; 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, a condition that occurs 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). 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 and CVV

 

Please see FSA memo for more details.


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