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KLA : Change Makes Livestock Indemnity Program More Equitable

Sep 09, 2009
By KLA

USDA announced it has added a weight category to the Livestock Indemnity Program (LIP). The change splits the over 400 lb. non-adult cattle category into 400 lbs. to 799 lbs. and more than 800 lbs.

This modification is a result of input from KLA and NCBA. The organizations pointed out the vast differences in value between a 400 lb. calf and a finished steer or heifer. By splitting the category, LIP rates will more closely reflect the value of cattle lost.

State Farm Service Agency (FSA) offices will establish normal mortality rates for each of the new weight categories covered under LIP. The program provides assistance to producers for livestock deaths in excess of normal mortality due to adverse weather, including excessive heat, extreme cold, blizzards, disease, floods, hurricanes and wildfires. FSA officials in Washington , D.C. , will establish average fair market prices for each category. LIP will pay 75% of the market value for livestock mortalities exceeding normal loss rates.

A notice of loss must be filed by September 14 at a county FSA office for qualified livestock losses incurred between January 1, 2008, and July 12, 2009. Documentation could include renderers’ receipts, veterinary or insurance records, approximate weights of cattle lost, total inventory, management steps taken to reduce heat stress and existing weather conditions when the losses occurred. For more information, call the KLA office.


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