Tag Archives: FSA

From UNL BeefWatch online magazine

The Livestock Indemnity Program (LIP), administered by the USDA Farm Service Agency (FSA), provides compensation to eligible livestock producers who have suffered livestock death losses in excess of normal mortality due to adverse weather, including extreme cold, storms and flooding.

With the extreme weather conditions Nebraska has been experiencing this winter, it is important livestock producers diligently document and report their death losses for possible LIP payments.

To be eligible for LIP payments, a producer must file a notice of loss on form CCC-852 with his/her local FSA office within 30 calendar days of when the death losses become apparent. The producer can then file an application for payment to request compensation for losses in excess of the normal annual mortality rate. This must be completed no later than March 1, 2020.

Multiple notices of losses and multiple applications for payment may be filed by producers that suffer multiple livestock losses during the same calendar year. Once a qualifying weather event has been identified, adult livestock dying within 60 days of that qualifying event can be considered eligible for loss benefits.

Good record-keeping habits should be part of the livestock manager’s DNA anyway, but it is at times like these that those habits can really pay dividends. The logical question to ask any producer submitting an LIP notice of loss and application for payment to an FSA office is, “How can you verify what you are trying to tell us?” Producers should provide records of the pertinent information regarding the livestock losses suffered due to an eligible adverse weather event, including things such as the number, kind, type and weight range of livestock that died, supplemented with dated photographs, video records, rendering receipts, or veterinarian records.

A photograph with a camera or smart phone showing the date the loss occurred can be a quick and simple record of the losses incurred. For calving losses, document death losses in your calving book with clear notes as to what exactly caused the death. 

LIP payments are calculated based on eligible death losses in excess of normal annual mortality. Normal mortality rates are established by FSA on a state-by-state basis using recommendations from state livestock and Extension Service organizations. The normal mortality rates established for beef cattle in Nebraska are:

Adult: Cows and bulls, 1.5 percent

Non-adults: 800 pounds or more, 1 percent; 400 to 799 pounds, 2 percent; less than 400 pounds, 5 percent

Producers need accurate inventory counts showing the number and type of livestock that were affected by the eligible event. Beginning and ending year inventory numbers supplemented with production records, purchase records, sale records, veterinarian records, inventory related bank loan documentation, and other reliable documents can help verify livestock inventories at different points throughout the year.

It is important for producers to realize that normal death losses that occur throughout the year are equally important to document and verify. For example, suppose a Nebraska beef cattle producer owns 400 pregnant cows at the beginning of the calendar year. Veterinary records of the fall pregnancy check and the producer’s own inventory records would help verify this information. This producer’s normal annual mortality would be five cows and 20 calves based on the rates for the state of Nebraska. Following an eligible adverse weather event, the producer is able to verify the loss of four cows and twenty-two calves due to the event by filing a notice of loss on form CCC-852 with the local FSA office along with the supporting evidence.

Based on this information, the producer could file a request for compensation on two calves in excess of the normal mortality rate. However, the producer also documents normal death losses throughout the year that account for the loss of ten more calves and three cows.

In summary, the producer’s LIP application(s) for payment could then request compensation for 12 calves and two cows. This would be the amount the producer’s annual death losses would exceed normal mortality rates and be within the confines of the documented death losses attributed to the eligible weather event.

The LIP payment rates are based on 75 percent of the national market value of the livestock. For example, the 2018 payment rate for a cow would have been $983.90 per head and a calf under 400 pounds would have been $468.92 per head.

Payment rates have not yet been set for 2019 losses, but still are a potentially important cost recovery from the financial impacts of losing a larger than normal number of animals.

A Livestock Indemnity Program Factsheet is available on the USDA Farm Service Agency website. The URL is https://www.fsa.usda.gov/Assets/USDA-FSA-Public/usdafiles/FactSheets/2018/livestock_indemnity_program_fact_sheet_dec_2018.pdf

Also, contact your local FSA Office for more information on the LIP program.

(Video) ‘BOMB CYCLONE’; Damage and Looses from in Nebraska More than $1 Billion

Livestock Indemnity Program (LIP): This program financially assists producers when they suffer loss of livestock due to adverse weather. As producers assess their individual situations, whether it be the blizzard in the West or the flooding in the East, here are a couple of key things to keep in mind:

  1. If you have suffered a loss of livestock, you need to report those losses to your FSA county office within 30 days of when those losses become apparent. This 30-day notification window is critical. A phone call to the county office works for this notification.
    1. Keep in mind, outside of the immediate situations, some producers had some extreme weather in February where folks suffered livestock losses, so depending on when those losses occurred in February, that notification window is closing.
  2. Documentation of losses also is critical. FSA will need some sort of supporting evidence of your losses, and this can include things such as: veterinarian certification, other independent third party certification, rendering receipts, dated photos or video. Those things are an important part of the application process.
  3. FSA will also need to know the type or weight of the animals lost. Adult animals, so bulls and cows, vs. calves or yearlings, are broken out differently in the LIP program, so that part of the record is important.
  4. Information about the specific weather conditions that caused the losses also is important.

Here is the link to the most recent Fact Sheet about LIP.

Emergency Assistance for Livestock, Honeybees and Farm-Raised Fish (ELAP): This program covers some livestock losses that do not fall under the Livestock Indemnity Program. Specific to the current adverse weather situations in Nebraska, ELAP may be applicable as it can, in certain situations, financially assist with livestock feed losses, such as bales that may have been destroyed in the flood.

Here is the link to the most recent Fact Sheet about ELAP.

Emergency Conservation Program (ECP): ECP can provide some cost-share assistance to rehabilitate farmland damaged by natural disasters. It also can provide cost-share assistance to help restore fences damaged or lost due to natural disaster. There is quite a bit to this program, and it doesn’t trigger automatically. FSA county committees will need to make a request for this program in their local areas. It is critical that producers, if they think they may want to access this cost-share resource, contact their county office about this program before taking any action to repair damages.

It’s been a tough winter for farmers, especially for beef and dairy producers. Extreme weather across a good chunk of the nation have resulted in some excessive livestock deaths.

Ranchers who have experienced those losses may be eligible to recover some of those losses, thanks to the Livestock Indemnity Program.  A Drovers article says the program provides needed benefits to eligible livestock producers who suffer the deaths of livestock outside the normal range of mortality, due to conditions like adverse weather, disease, and predator attacks.

Eligible losses don’t automatically trigger payments. Livestock owners must provide evidence of such losses to the Farm Service Agency. To qualify for program benefits, livestock must have died in excess of normal mortality rates as a direct result of eligible loss conditions, such as weather or predators.

Livestock farmers also qualify for the benefit if livestock were injured due to an eligible loss condition and were sold at a reduced price because of that injury. If death losses occur, producers are reminded to record the date, take pictures, and report it directly to the Farm Service Agency.