What to know about blizzard losses and LIP payments | TSLN.com

What to know about blizzard losses and LIP payments

The Agriculture Improvement Act of 2018 (the 2018 Farm Bill) authorized the Livestock Indemnity Program (LIP) to provide benefits to eligible livestock owners or contract growers for livestock deaths in excess of normal mortality caused by eligible loss conditions, including eligible adverse weather, eligible disease and attacks by animals reintroduced into the wild by the federal government or protected by federal law, including wolves and avian predators.

For producers who suffered livestock losses from the recent blizzard, the Farm Service Agency may be able to help with some compensation. Photo by Ruth Wiechmann.

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. LIP is administered by the U.S. Department of Agriculture (USDA) Farm Service Agency (FSA).

The occurrence of an eligible loss condition in and by itself – does not determine eligibility for eligible livestock losses. The livestock owner or contract grower must provide evidence acceptable to FSA that the eligible cause of loss not only occurred but directly caused loss or death.

LIP payments for owners are based on national payment rates that are 75 percent of the market value of the applicable livestock as determined by the USDA’s Secretary of Agriculture. Rates for contract growers of poultry or swine will not exceed the rates for owners but are

To be eligible for LIP:

• A livestock owner must have legally owned the livestock on the day the livestock died and/or were injured by an eligible loss condition

• An owner’s livestock must have either died in excess of normal mortality as a direct result of an eligible loss condition, or been injured as a direct result of an eligible loss condition and were sold at a reduced price.

Eligible livestock must:

• Have been maintained for commercial use as part of a farming operation on the day they died; and

• Not have been produced or maintained for reasons other than commercial use as part of a farming operation. Excluded livestock includes wild free-roaming animals, pets or animals used for recreational purposes, such as hunting, roping or for show.

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;

• 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, 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

Applying for LIP

Owners or contract growers may apply to receive LIP benefits at local FSA offices.

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. All of the owner’s or contract grower’s interest in inventory of eligible livestock in that county for the calendar year must be accounted for and summarized when determining eligibility.

An owner or contract grower must file a notice of loss within 30 calendar days of when the loss of livestock is first apparent as well as file an application for payment within 60 calendar days after the end of the calendar year in which the eligible loss condition occurred.

Livestock Loss Documentation

Livestock owners and contract growers must record all pertinent information (including the number and kind) of all livestock and those adversely impacted by an eligible loss condition resulting in either death losses or injury and sales of injured livestock at reduced price.

Owners who sold injured livestock for a reduced price because the livestock were injured due to an eligible adverse weather event or eligible attack, must provide verifiable evidence of the reduced sale of the livestock. The injured livestock must be sold to an independent third party (such as sale barn, slaughter facility, or rendering facility).

Documents that may provide verifiable evidence of livestock sold at a reduced price include but are not limited to:

• sales receipts from a livestock auction, sale barn or

• other similar livestock sale facilities

• rendering facility receipts

• processing plant receipts

The documentation for injured livestock sales must have the price for which the animal was sold as well as information on livestock kind, type, and weight sold. FSA will use information furnished by the applicant to determine eligibility. Furnishing the required information is voluntary; however, without all required information, program benefits will not be approved or provided.

For More Information

This is for informational purposes only; other eligibility requirements or restrictions may apply. To find more information about FSA disaster assistance programs, visit farmers.gov or contact your local FSA office. To find your local FSA office, visit farmers.gov/ service-center-locator.

–FSA Factsheet

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