Bill seeks fairer market prices for Livestock Indemnity Program

The LIP provides payments to eligible livestock owners and contract growers for abnormal livestock deaths caused by an eligible loss condition, such as severe weather, disease, or animal attack. Currently, the FSA is required to update LIP payment rates annually. While the agency occasionally provides periodic price updates, the Livestock Indemnity Program Improvement Act would make these updates more frequently to reflect an ever-changing market.

“South Dakota farmers and ranchers work hard to produce quality livestock,” said Rounds. “Unfortunately, extenuating circumstances such as severe weather or disease can deplete their herds and as such, hurt their operations. These producers deserve to be paid a fair and updated market price for their livestock when tragedy strikes.”

Klobuchar said ranchers often make large financial investments in their livestock and sometimes face heavy losses due to natural disasters and other circumstances beyond their control. “This bipartisan legislation will ensure ranchers have a safety net that more accurately reflects the market value of any lost livestock,” she said.

The LIP Payment Improvement Act is supported by the National Cattlemen’s Beef Association and the South Dakota Farmers Union.

“Natural disasters take a heavy toll on cattle producers, especially when severe weather leads to livestock losses,” said Allison Rivera, executive director of government affairs at National Cattlemen’s Beef Association. “Many producers rely on the Livestock Indemnity Program for support during these challenging times, but the program needs to be updated in a timely manner so that cattle producers are reimbursed for the full value of their lost cattle. Our members appreciate Senator Rounds introducing the Livestock Indemnity Payment Improvement Act of 2023 to correct this issue and ensure that cattle producers are compensated at the fair market value of their livestock.”