Legislation to reform livestock disaster program garners support

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 LIP Improvement Program would make these updates more frequently to reflect an ever-changing market.

The LIP Payment Improvement Act has been included in the U.S. House Agriculture Committee’s version of the Farm Bill, which has been passed out of committee. The provision has also been included in both the majority and minority frameworks for the Senate Agriculture Committee’s Farm Bill, which is awaiting markup.

“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.”

Related: Bill seeks fairer market prices for Livestock Indemnity Program

The LIP Payment Improvement Act is supported by the National Cattlemen’s Beef Association as well as the South Dakota Farmers Union, the South Dakota Stockgrowers Association, the South Dakota Cattlemen’s Association and the South Dakota Farm Bureau.

“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.”

“The South Dakota Stockgrowers Association, the oldest cattle organization in the United States, supports Senator Rounds efforts in maintaining updated and concise reports for our Livestock Indemnity Program with the Farm Service Agency. Our organization has always supported our livestock producers, and we support all efforts to ensure their businesses and livelihood are protected,” said Doris Lauing, executive director of South Dakota Stockgrowers Association.

Lauing said ranchers invest a vast amount of time, labor and finances into building a quality herd, but extenuating circumstances such as severe weather or disease can deplete their herds and cripple operations. “These producers deserve to be paid a fair and updated market price for their livestock when tragedy strikes in which Senator Rounds is asking for. As market prices fluctuate, so should the program so cattle producers are reimbursed the full value,” she said.