Statement on Livestock Indemnity Program Payment Adjustments

Statement

U.S. Senator Kevin Cramer (R-ND) issued the following statement on the payment adjustment for the Farm Service Agency's (FSA) Livestock Indemnity Program (LIP):

"The Livestock Indemnity Program exists to assist producers who had above normal livestock fatalities as a result of storms, like the significant blizzards which impacted North Dakota this spring. The storms coincided with calving season and caused significant fatalities among newborn calves. This announcement adjusting livestock indemnity payments is a better reflection of the fair market value of their animals. I'm grateful the Farm Service Agency reviewed my request and made the appropriate change to ensure producers receive meaningful relief for their losses."

LIP payment rates are 75% of the fair market value of livestock using nationwide prices for the previous calendar year. Prior to the announcement, 2022's calculations for assistance for non-adult beef cattle weighing less than 250 pounds was $175, which reflected an average market price of $233. The announcement increases the payment rate to $474.38 representing a market value of approximately $632, a substantial increase from previous calculations. The increased assistance aligns the payment rate for calves under 250 pounds with the payment rate for calves between 250 and 399 pounds.

In April, Senator Cramer urged FSA Administrator Zach Ducheneaux to provide accurate relief to eligible livestock owners for deaths under LIP following winter storms in North Dakota. He called for USDA to "accurately compensate producers for the livestock they lost." Senator Cramer also requested the agency look into "whether the weight categories under LIP should be reexamined." Learn more here.

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