Program Description

The Livestock Indemnity Program (LIP) offers payments to livestock producers for livestock deaths in excess of normal mortality caused by adverse weather.

LIP also covers losses due to 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 for owners equal 75% of the livestock's market value on the day before the date of death. Rates for contract growers of poultry or swine will not exceed the rates for owners. Those rates are 75% of the national average input cost for the livestock.

The 2018 Farm Bill changed certain provisions effective in 2019. Eligible losses include the following, in short:

  • Unweaned livestock death due to extreme cold.
  • Livestock death due to diseases caused or transmitted by a vector.

Visit the LIP page to get full details and eligibility requirements.

General Program Requirements

To qualify, you must have legally owned the livestock, poultry, or swine on the day they died or had injuries from a loss condition. They must also meet one of the following conditions:

  • Died in excess of normal mortality from the loss condition, or
  • Had injuries from the loss condition and were sold within 30 days at a reduced price.

Livestock must also meet both of the following conditions:

  • Were for commercial use in a farming operation on the day they died.
  • Were not produced or maintained for reasons other than commercial use as part of a farming operation.
  • Excludes wild, free-roaming animals, or pets or animals used for recreational purposes. This includes animals used for hunting, roping, or show.

If you’re a contract grower, you must meet all other eligibility requirements as well as both of the following:

  • Possession and control of the livestock.
  • A written agreement with the livestock owner. This must set the specifics for all parties about the production of livestock. (Could be poultry or swine only.)

Application Process

As an owner or contract grower, you must submit both of the following to the local FSA office that serves the county where the losses occurred:

  • A notice of loss within 30 calendar days of when you became aware of the loss of livestock.
  • An application for payment within 60 calendar days after the end of the calendar year the loss occurred.

For 2017 and future program years, there is no payment limitation per person or legal entity. If you have an average AGI of more than $900,000 that applies, you are not eligible for LIP payments. Legal entities exclude joint ventures and general partnerships.

Other terms and conditions may apply.

Last Updated: 07/22/2020