By Emmy Powell
Communications Specialist
Proposed legislation was introduced earlier this year that would require the secretary of agriculture to provide regular updates to the Livestock Indemnity Program (LIP) payment rates to reflect market prices.
Congressional lawmakers say the LIP Improvement Act will offer ranchers fairer market prices for livestock disaster assistance programs.
“Unfortunately, extenuating circumstances such as severe weather or disease can deplete their herds, and as such, hurt their operations. These producers deserve to be paid a fair and updated market price for their livestock when tragedy strikes,” said U.S. Sen. Mike Rounds (R-South Dakota), who introduced the bill in the Senate with U.S. Amy Klobuchar (D-Minn).
Ranchers can enroll in LIP through the Farm Service Agency (FSA) when impacted by adverse and unpredictable events that cause cattle deaths and financial losses. The program helps provide relief to farmers and ranchers and keep their operations running after losing animals due to natural disasters.
FSA is required to update LIP payment rates annually.
The bill would require FSA to make quarterly updates to LIP payment rates to reflect the unpredictable and ever-changing market.
“Ranchers often make large financial investments in their livestock and sometimes face heavy losses due to natural disasters and other circumstances beyond their control,” Klobuchar said. “This bipartisan legislation will ensure ranchers have a safety net that more accurately reflects the market value of any lost livestock.”
Texas Farm Bureau (TFB) supports the legislation.
“The need for timely and fair compensation becomes more urgent as Texas ranchers continuously feel the impacts of natural disasters,” Laramie Adams, TFB associate director of Government Affairs, said. “We appreciate Sen. Rounds and Sen. Klobuchar for their efforts in updating the program through the ‘Livestock Indemnity Payment Improvement Act of 2024.’ This is a critical update that will provide the flexibility needed to address future challenges posed by severe weather.”
A companion bill was introduced in the U.S. House by Rep. Randy Feenstra (R-Iowa).
In addition to TFB, the legislation is supported by the National Cattlemen’s Beef Association.
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