Legislation has been introduced in the U.S. Senate that would offer producers fairer market prices for livestock disaster assistance programs. The Livestock Indemnity Program (LIP) Improvement Act would require the Farm Service Agency (FSA) to make quarterly updates to the Livestock Indemnity Program payment rates that reflect livestock market prices.
The LIP provides payments to eligible livestock owners and contract growers for abnormal livestock deaths caused by an eligible loss of condition, such as severe weather, disease, or animal attack. The FSA is currently required to update the payment rates annually. The bipartisan, introduced by Senators Mike Rounds (R-SD) and Amy Klobuchar (D-MN), would make these updates more frequent to reflect a quickly-changing market.
Senator Klobuchar said, “Ranchers often make large financial investments in their livestock and sometimes face heavy losses due to natural disasters and other circumstances out of their control. This will help ensure ranchers have a safety net that more accurately reflects the market value of any lost livestock.”
(From the National Association of Farm Broadcasters)
