The Livestock Indemnity Program (LIP) offers payments to livestock producers for livestock deaths in excess of normal mortality caused by bad weather. LIP also covers attacks by animals reintroduced into the wild by the federal government or protected by federal law. This includes attacks by wolves and birds.
LIP payments equal 75 percent of the livestock’s market value on the day before the date of death.
The Bipartisan Budget Act of 2018 made several changes to LIP effective with the 2017 program year. Those changes include the following:
- Removed the maximum program year per person and legal entity payment ceiling for 2017 and subsequent program years.
- Provides payment for livestock that are injured but not killed by an eligible loss condition and sold for a reduced price.
Visit the LIP page to get more details.
General Program Requirements
To qualify, you must have legally owned the eligible livestock, poultry, or swine on the day they died, and they must:
- Have died due to an eligible weather event on or after Oct. 1, 2011, and no later than 60 days from the end date of the event.
- Have been for commercial use in a farming operation on the day they died.
- Have died in the calendar year of requested benefits.
Excludes wild, free-roaming animals, or pets or animals used for recreational purposes. This includes animals used for hunting, roping, or show.
You must have had possession and control of the livestock and a written agreement with the livestock owner. The specific terms, conditions, and obligations of both parties must be set.
To apply for payment, you must submit a notice of loss and an application at your local Farm Service Agency (FSA) office. You must submit the notice of loss the earlier of the following:
- 30 days of when the loss of livestock is known, or
- 30 days after the calendar year end of the loss year.
If you’re a contract grower, you must include a copy of the grower contract. The supporting documents you submit must also show the following:
- Evidence of loss.
- Current physical location of livestock inventory.
- Location of the livestock at the time of death.
Other terms and conditions may apply.