What Should Farmers Know About Climate Change? Livestock Indemnity Program

 

Abnormal weather patterns have increasingly made livestock producers vulnerable to reduced outputs. Previously on the Climate Column, we’ve discussed tools developed by the U.S. Department Agriculture (USDA) that assist farmers with preparations for droughts and higher temperatures, but there are also programs that provide financial compensation and assistance for extreme climate-induced economic challenges.

 

Livestock death is one such event that can negatively impact an operation’s bottom line. Livestock producers experiencing increased livestock mortality rates caused by more frequent and more severe weather conditions and natural disaster occurrences may be eligible to acquire assistance through the USDA Farm Service Agency’s (FSA) Livestock Indemnity Program (LIP).

 

Producers who have experienced livestock loss due to inclement weather conditions such as flooding, snow storms, and intense heat, or due to attack by animals reintroduced into the wild by the federal government or protected by federal law, may be eligible for LIP payments. Indirect deaths may qualify as well, including deaths caused by infections and diseases that are exacerbated by certain weather conditions. Eligible producers must be the legal owner of the animal prior to the animal’s death, and must report the event within 60 days of the death.

 

LIP payments amount to “75 percent of market value of the animal type on the day before the animal’s death.” The use of the animal is also taken in to consideration when calculating the payment. For example, the loss of animals bred for commercial profit may be covered, while pets and animals used for recreation are not.

 

Because applying and receiving LIP payments can be a time-consuming process and not thoroughly reliable for covering all lost costs, livestock producers should be proactive in adopting practices that prevent livestock deaths and avoid dependence on LIP. Building vertical structures on pasturelands is one way to provide cover and reduce animals’ exposure to direct sunlight and precipitation. Adoption of silvopasture, which combines trees with forage and livestock production, is one way to provide shelter. Another method of loss prevention is building healthy soils, which improves infiltration and ultimately limits moisture accumulation and reduces chances of disease transmission.