LIVESTOCK INDEMNITY PROGRAM UPDATED TO REFLECT CURRENT MARKET CONDITIONS

(AUGUST 29, 2023) – On Friday, the U.S. Department of Agriculture’s Farm Service Agency (FSA) announced that they will be updating the 2023 Livestock Indemnity Program (LIP) payment rate for beef calves over 800 pounds will increase from $1244 per head to $1618, an increase of $374.

The payment will apply retroactively to all qualifying losses since January 1, 2023. No action is necessary for retroactive payments, producers will receive an additional payment if applicable.

For current losses, payments will be queued up by as early as next week. FSA acknowledged that some animals might have lost weight due to extreme weather conditions, and they are working on how to handle those cases.

FSA will also be exploring ways for LIP to react better react to current market conditions when establishing payment rates in the future.

The U.S. Cattlemen’s Association (USCA) President Justin Tupper issued the following statement:

“USCA applauds the timeliness with which FSA Administrator Zach Ducheneaux addressed this issue, which had been raised by our producer members experiencing significant weather-related events this year. 

“A loss in today’s market has a significantly higher impact on a producer’s bottom line, and the updated indemnity better reflects the value of that animal. USCA would like to thank the entire FSA staff for their role in these changes, and especially appreciates the local FSA offices for being on the frontlines in these tough climate conditions.”

Source: USCA press release