Livestock Indemnity Program-2014 Farm Bill
LIP provides benefits to eligible livestock owners or livestock contract growers for livestock deaths in excess of normal mortality caused by eligible loss conditions, including eligible adverse weather, eligible disease and by attacks by animals reintroduced into the wild by the federal government or protected by federal law, including wolves and avian predators. In addition, LIP provides assistance to eligible livestock owners that must sell livestock at a reduced price because of an injury from an eligible loss condition.
General information about this opportunity
Last Known Status
Farm Service Agency, Department of Agriculture
Type(s) of Assistance Offered
D - Direct Payments With Unrestricted Use
The Agricultural Act of 2014 (2014 Farm Bill), Title I, Part III, Section 1501, Public Law -
Public Law 113-79
Who is eligible to apply/benefit from this assistance?
To be eligible for benefits, an individual or legal entity must be a citizen of the United States (U.S.); legal Resident alien in the U.S.; Partnership comprised of U.S. citizens; Corporation, limited liability corporation or company, or other organization structure established under State law; or an Indian tribe or tribal organization. An eligible livestock owner must have had the production and market risks associated with the agricultural production of livestock and who had legal ownership of the eligible livestock on the day the livestock died or were injured and under conditions in which no contract grower could have been eligible for benefits with respect to the livestock. To be eligible livestock, the livestock must have died in excess of normal mortality as a direct result of an eligible loss condition and no later than 30 calendar days after the ending date of the applicable eligible loss condition An eligible contract grower must have interest in the livestock, not as owner but as a person or entity whose interest is in poultry or swine, as of the day of the eligible loss condition, a written agreement setting the specific terms, conditions and obligations of the parties involved regarding the production of livestock with the owner of eligible livestock, on the day the poultry or swine died, and a risk of loss in the animal. . An eligible livestock for a livestock owner must be alpacas, adult or non-adult beef, beefalo, buffalo/bison and dairy cattle, caribou, chickens, deer, ducks, elk, emus, equine, geese, goats, llamas, reindeer, sheep, swine, or turkeys. An eligible livestock for a contract grower must be chickens, ducks, geese, swine, or turkeys. The eligible livestock must have been maintained for commercial use as part of a farming operation before dying and on the day the eligible livestock died. An eligible loss condition includes an eligible adverse weather event, eligible disease, and eligible attack. Eligible adverse weather event means extreme or abnormal damaging weather that is not expected to occur during the loss period for which it occurred, which directly results in eligible livestock losses. An eligible adverse weather event must occur in the calendar year for which benefits are requested. Eligible adverse weather events include, but are not limited to, as determined by the FSA Deputy Administrator of Farm Programs or designee, earthquake; hail; lightning; tornado; tropical storm; typhoon; fog, if directly related to a volcanic eruption; winter storm, if the winter storm lasts for three consecutive days and is accompanied by high winds, freezing rain or sleet, heavy snowfall and extremely cold temperatures; hurricanes; floods; blizzards; wildfires; extreme heat; extreme cold; and straight-line winds. Drought is not an eligible adverse weather event except when associated with anthrax, a condition that occurs because of drought and results in the death of eligible livestock. Eligible disease means a disease that is exacerbated by an eligible adverse weather event that directly results in eligible livestock losses, including, but not limited to, anthrax, cyanobacteria, (beginning in 2015 calendar year) and larkspur poisoning (beginning in 2015 calendar year). In addition, eligible disease means a disease that is caused and/or transmitted by vectors and vaccination or acceptable management practices are not available, whether or not they were or were not implemented, that directly result in death of eligible livestock in excess of normal mortality, including but not limited to Blue Tongue, EHD and CVV. Eligible attack means an attack by animals reintroduced into the wild by the Federal Government or protected by Federal law, including wolves and avian predators, that directly results in either injured livestock sold at a reduced price or death of eligible livestock, in excess of normal mortality.
The eligible livestock or contract owner will receive the ultimate benefit from LIP.
All of the livestock owner's or contract grower's interest in inventory of eligible livestock in that county for the calendar year must be accounted for and summarized when determining eligibility. Livestock owners and contract growers must record all pertinent information (including the number and kind) of all livestock and those adversely impacted by an eligible loss condition resulting in either death losses or injury and sales of injured livestock at reduced price. Owners who sold injured livestock for a reduced price because the livestock were injured due to an eligible adverse weather event or eligible attack, must provide verifiable evidence of the reduced sale of the livestock. The injured livestock must be sold to an independent third party (such as sale barn, slaughter facility, or rendering facility). Documents that may provide verifiable evidence of livestock sold at a reduced price include, but are not limited to, sales receipts from a livestock auction, sale barn or other similar livestock sale facilities, rendering facility receipts, processing plant receipts, The documentation for injured livestock sales must have the price for which the animal was sold as well as information on livestock kind, type, and weight sold. FSA will use information furnished by the applicant to determine eligibility. Furnishing the required information is voluntary; however, without all required information, program benefits will not be approved or provided.
What is the process for applying and being award this assistance?
Preapplication coordination is not applicable.
2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards applies to this program. This program is excluded from coverage under 2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Eligible livestock and contract growers must submit a notice of loss and an application for payment to the local FSA office that serves the physical location county where the livestock losses occurred.. A notice of loss must be submitted within the earlier of 30 calendar days of when the loss of livestock is first apparent to the producer. In addition, an application for payment must be submitted within 60 calendar days after the end of the calendar year in which the eligible loss condition occurred.
LIP payments for livestock death losses, adjusted for normal mortality, are calculated by multiplying the national payment rate for the applicable livestock category by the number of eligible livestock in that category times the producer's share. The LIP national payment rate for eligible livestock owners is based on 75 percent of the average fair market value of the livestock. The LIP national payment rate for eligible livestock contract growers is based on 75 percent of the average income loss sustained by the contract grower with respect to the dead livestock. A contract grower's LIP payment will be reduced by the amount of monetary compensation received from the owner for the loss of income suffered from the death of livestock under contract. For eligible livestock owners, LIP payments for injured livestock that are sold within 30 days of the date of an eligible loss condition at a reduced price due to an eligible adverse weather event or eligible attack are calculated by multiplying the national payment rate for the applicable livestock category minus the amount that the livestock owner received for the eligible livestock in that category times the livestock owner's share. If injured eligible livestock are sold for more than the national payment rate for the applicable livestock category, there is no payment.
Contact the headquarters or regional location, as appropriate for application deadlines
Approval/Disapproval Decision Time
Appeal regulations set forth in parts 11 and 780 of 7CFR apply to determinations made under LIP.
How are proposals selected?
How may assistance be used?
LIP is a permanent program and provides retroactive authority to cover eligible livestock losses back to October 1, 2011. Eligible livestock owners and contract growers will be compensated for eligible livestock deaths in the calendar year for which benefits are being requested as a direct result of an eligible adverse event.
What are the requirements after being awarded this opportunity?
Applicants receiving assistance for LIP shall maintain and retain financial books and records which will permit verification of all transactions for at least three years following the end of the calendar year in which assistance was provided and allow authorized representatives of USDA and the Government Accountability Office to inspect and verify all applicable livestock and acreage and to inspect, examine, and make copies of all financial books and records.
Other Assistance Considerations
Formula and Matching Requirements
Statutory formula is not applicable to this assistance listing.
Matching requirements are not applicable to this assistance listing.
MOE requirements are not applicable to this assistance listing.
Length and Time Phasing of Assistance
There are no restrictions placed on the time permitted to spend the money awarded. Method of awarding/releasing assistance: Lump.
Who do I contact about this opportunity?
Regional or Local Office
Consult the appropriate FSA State office where the property is located. For a list of FSA State offices with telephone numbers and addresses, information is available on the internet, visit FSA website at www.fsa.usda.gov to locate nearest office.
USDA, FSA, Safety Net Division
1400 Independence Ave SW Stop 0517
Washington, DC 20250 US
(Direct Payments with Unrestricted Use) FY 18$36,615,000.00; FY 19 est $29,779,000.00; FY 20 est $28,300,000.00; FY 17$25,066,000.00; FY 16$43,000,000.00; -
Range and Average of Financial Assistance
Regulations, Guidelines and Literature
LIP regulations are found in part 1416 of 7CFR. Program is also announced through press releases, news media, and newsletters.
Examples of Funded Projects