Unpredictable weather patterns, characterized by intense heat domes and sudden droughts, have characterized this summer. These difficulties, regardless of how prepared one might be, sometimes lead to unforeseen challenges. Considering these conditions, the USDA has taken measures to support the livestock industry.
USDA’s Farm Service Agency (FSA) announces an update in the Livestock Indemnity Program (LIP) payment structure. This is aimed at aiding Midwest livestock owners who've suffered losses due to this year’s brutal heat and humidity levels. Recognizing a trend of cattle attaining heavier weights in feedlots, the 2023 LIP payment for beef calves weighing over 800 pounds is now set at $1618 per head, a notable jump from the previous $1244.
Commenting on the pressing issue, FSA's Zach Ducheneaux pointed out the urgency brought about by the scorching heatwaves and the resulting fatalities among livestock. With the climate evolving and with shifts in livestock trends, LIP rates needed a recalibration to echo the true market cattle value. This ensures that the financial investments of producers in livestock get appropriate coverage.
Effective immediately, this adjusted LIP rate will be applied retroactively from the start of 2023, ensuring comprehensive coverage for all kinds of losses, not solely those due to extreme heat. This includes adverse incidents like tornado-induced damage or winter storm effects. Producers who've been previously compensated for their 2023 losses can anticipate an additional sum aligning with this updated rate. Source : wisconsinagconnection