Lamb Meat Adjustment Assistance Program

 

The purpose of this program is to provide benefits to sheep and lamb producers in order to reestablish their purchasing power in connection with the normal production of sheep and lambs for domestic consumption and boost the long-term development and growth of sheep and lamb farming in the United States.

General information about this opportunity
Last Known Status
Deleted 08/20/2009 (Archived.)
Program Number
10.081
Federal Agency/Office
FARM SERVICE AGENCY, DEPARTMENT OF AGRICULTURE
Type(s) of Assistance Offered
Direct Payments with Unrestricted Use.
Program Accomplishments
$17,357,719 was paid out to producers who filed claims under this program in FY 03. It is also estimated that more than $30,000,000 in payments were paid out to producers who suffered losses due to low prices and poor market conditions from FY 00 to 03.
Authorization
Clause (3) of section 32 of the Act of August 24, 1935, as amended.
Who is eligible to apply/benefit from this assistance?
Applicant Eligibility
To be eligible, applicants must be engaged in the business of producing and marketing agricultural products at the time of application. In addition, slaughtered lambs must meet the following criteria: (1) be marketed during August 1, 2001 through July 31, 2003; (2) be owned by operation at least 30 days before marketing; (3) carcasses must: (a) meet the requirements of USDA Quality Grade Choice or Prime, (b) meet the requirements of USDA Yield Grade 2, (c) have a muscling confirmation score of Average Choice or better, (d) have a 55-75 pound dressed hot carcass weight, (e) be certified by a USDA Agricultural Marketing Service (AMS) agent or an assigned representative, (f) be marketed between June 1 and July 31 of each program year in order to receive the $8 per carcass incentive payment. Feeder lambs must: (1) be marketed during the period August 1, 2001 through July 31, 2003; (2) be owned by the operation continuously from birth until the time of marketing; (3) be thick-muscled and large framed, as determined by AMS. Ewe lambs must: (1) not be older than 18 months of age; (2) not have produced an offspring; (3) not possess the characteristics of parrot mouth, foot rot, or scrapie; (4) be maintained in the herd for at least one complete offspring lambing cycle. Furthermore, eligible lamb producers must have in 1999 gross annual revenue of $2.5 million or less.
Beneficiary Eligibility
Sheep and lamb producers.
Credentials/Documentation
In order to receive payments, the sheep and lamb operation must submit supporting documentation of the cost of the improvements made to the facility during program Year 1 and must use facility improvements for sheep and lamb production activities continuously for at least the next 3 consecutive years. For slaughtered lambs, an Agricultural Marketing Service (AMS) agent or an assigned representative of AMS must verify that lamb carcasses meet the payment criteria. The condition of qualifying feeder lambs and ewe lambs must also be certified to by the AMS agent or an assigned AMS representative.
What is the process for applying and being award this assistance?
Pre-Application Procedure
None. This program is excluded from coverage under E.O. 12372.
Application Procedure
A request for Year 1 benefits under this program must be submitted via a completed Form FSA-382. A request for Year 2, Year 3, and Year 4 benefits under this program must be submitted via a completed Form FSA-383. The Forms FSA-382/3 should be submitted to FSA Office serving the county where the sheep and lamb operation is located.
Award Procedure
The Price Support Division (PSD) in Washington DC is responsible for making payments of LMA assistance program through FSA Service Center Offices.
Deadlines
Applications for Year 1 must be received in FSA Office by October 13, 2000. Applications for Year 2 must be received by August 15, 2001. Applications for Year 3 must be received by August 15, 2002. Applications for Year 4 must be received by August 15, 2003.
Approval/Disapproval Decision Time
From 1 to 30 days.
Appeals
Any sheep and lamb operation which is dissatisfied with a determination may make a request for reconsideration or appeal of such determination in accordance with the appeal regulations set forth at parts 11 and 780 of 7 CFR part 784.
Renewals
Not applicable.
How are proposals selected?
All producers meeting eligibility requirements may receive assistance. Applications are non-competitive.
How may assistance be used?
This program is designed to provide immediate financial assistance to sheep and lamb producers who have recently experienced low prices and poor market conditions. Payments under this program will provide those who are eligible with an immediate infusion of funds to help pay for operating expenses and meet other financial obligations. The Farm Service Agency (FSA) will provide with respect to sheep and lamb operations: Year 1, payments are for purchasing eligible rams for breeding, enrolling their herd in a sheep improvement program, and for making improvements to their production facilities; Year 2, Year 3, and Year 4 payments are for marketing of eligible slaughtered lambs, feeder lambs, or ewe lambs.
What are the requirements after being awarded this opportunity?
Reporting
None.
Auditing
Recipients under this program are subject to audit by the Office of the Regional Inspector General, USDA.
Records
Persons making application for benefits under this program must maintain accurate records and accounts in order to document that they meet all eligibility requirements specified herein. Such records and accounts must be retained for 3 years after the date of payment to the sheep and lamb operations under this program. Destruction of the records after such date shall be the risk of the party undertaking the destruction.
Other Assistance Considerations
Formula and Matching Requirements
For Year 1 Producers will receive up to $100 for each ram that is purchased for breeding purposes, at least 90 days old at the time of purchase, and will be maintained for at least 90 days. The maximum ram payment allowed per sheep and lamb operation for rams is $2,500. Producers will receive $.50 for each sheep enrolled in an authorized sheep improvement program; however, the maximum sheep improvement payment is $500. The facility improvement option will provide producers with a payment of 20 percent of the total cost of the facility improvement, not to exceed $2,500 per sheep and lamb operation. Improvements that must be made during Year 1 must be used in the sheep and lamb operation for at least the next 3 consecutive years and producers must submit cost documentation of the improvements made. The maximum combined total payments to a sheep and lamb operation are $5,500. For Year 2 and Year 3 Payment rates for feeder and slaughter lambs include $3 per head for feeder lambs, $5 per head for slaughter lambs, and $8 total per head for slaughter lambs marketed during June 1 through July 31. For Year 4 Payment rates are $3 per head for feeder lambs, $5 per head for slaughtered lambs, $8 total per head for slaughtered lambs marketed during June 1 through July 31, $18 per head for each ewe lamb purchased or retained for breeding purposes during the period of August 1, 2001 through July 31, 2003. There are no maximum payments or herd limits, but feeder lamb producers whose gross income for calendar year 2001 or 2002 exceed $2.5 million are ineligible for payments. In order to receive the $8 per carcass incentive payment, slaughter lambs must be marketed between June 1 and July 31 of each program year.
Length and Time Phasing of Assistance
This program has four benefit years: Year 1 - July 22, 1999 through September 30, 2000; Year 2 - August 1, 2000 through July 31, 2001; Year 3 - August 1, 2001 through July 31, 2002; Year 4 - August 1, 2002 through July 31, 2003. Each benefit year has various types of payments and eligibility requirements. Funds not used during one year are carried into the following years.
Who do I contact about this opportunity?
Regional or Local Office
Consult the local phone directory for location of the nearest county FSA Office. If no listing, contact the appropriate State FSA Office listed in the FSA section of Appendix IV of the Catalog, or on the Internet at http://www.fsa.usda.gov/edso/.
Headquarters Office
Department of Agriculture, Farm Service Agency, Price Support Division, Stop 0512, 1400 Independence Avenue SW, Washington, D.C. 20250-0517. Telephone: (202) 720-1919.
Website Address
http://www.fsa.usda.gov/dafp/psd/lamb.htm
Financial Information
Account Identification
12-4336-0-1-351.
Obligations
(Direct Payments) FY 02 not available; FY 03 est $67,700,000; and FY 04 est not available.
Range and Average of Financial Assistance
Not applicable.
Regulations, Guidelines and Literature
Program is announced through news media and in letters to agricultural producers in the county. Regulations published in the Federal Register, 7 CFR part 784. LMA Fact Sheet may be located online at http://www.fsa.usda.gov/pas/publications/facts/html/lamb02.htm.
Examples of Funded Projects
Not applicable.