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Livestock Indemnity Program

LIP
Number: 10.088
Agency: Department of Agriculture
Office: Farm Service Agency

Program Information 

Program Number/Title (010):
10.088 Livestock Indemnity Program
Popular Name (020):
(LIP)
Federal Agency (030):
Farm Service Agency, Department of Agriculture
Authorization (040):
The Food, Conservation, and Energy Act of 2008; Public Law 110-246, Public Law 110-246.
Objectives (050):
The Livestock Indemnity Program (LIP) compensates producers for livestock death losses in excess of normal mortality due to adverse weather that occurred on or after January 1, 2008 and before October 1, 2011. No State, county or other trigger will be used to define an eligible LIP area. Sign up will begin when an eligible disaster is apparent.
Types of Assistance (060):
Direct Payments for Specified Use
Uses and Use Restrictions (070):
The assistance will be used to provide relief to eligible producers due to adverse weather, as determined by the Secretary of Agriculture (henceforth the Secretary), during the calendar year. An eligible producer on a farm means an individual or entity that, as determined by the Secretary, assumes the production and market risks associated with the agricultural production of crops or livestock. An individual or entity is a citizen of the United States (U.S.); a resident alien; a partnership of citizens of the U.S.; or a corporation, limited liability corporation, or other farm organizational structure organized under State law. Eligible livestock is an adult/non-adult beef or dairy cattle, adult/non-adult buffalo/beefalo, equine maintained for commercial use as part of the farming operation, elk, reindeer, deer, sheep, alpacas, emus, swine, goats, llamas, and poultry. Eligible adverse weather events are wildfire (must be related to an adverse weather event), blizzard, tornado, lightning, ice storms, earthquakes, flooding, extreme cold or heat. If an eligible livestock dies due to a disease, it must be related to or exacerbated by an eligible adverse weather event to be an eligible cause of livestock deaths under LIP. 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.
Eligibility Requirements (080)
Applicant Eligibility (081):
An eligible producer may use assistance for livestock death losses in excess of the normal mortality due to adverse weather.
Beneficiary Eligibility (082):
Beneficiary eligibility is extended to an eligible livestock producer who is an owner, cash share lessee, a contract grower of covered livestock that provides the pasture land or grazing land (including cash-leased pasture land or grazing land for the livestock) that is physically located in a county affected by drought. The term "eligible livestock producer" does not include an owner, ash or share lessee, or contract grower of livestock that rents or leases pasture land or grazing land owned by another person on a rate-of-gain basis. The eligible producer on a farm must have during the 60 calendar days before the beginning date of a qualifying drought or fire, owned, ashed or share leased, or been a contract grower of eligible covered livestock.
Credentials/Documentation (083):
Proof of death of livestock must be provided and may include but is not limited to, any or a combination of the following: rendering truck receipts or certificates; national guard receipts of carcass removal; veterinary records; tax assessor records; private insurance documents; a measurement service may be requested by the producer and completed by FSA. Documentation must provide sufficient data that identifies the kind/type/weight range of livestock and the number of livestock. A third party certification may be accepted only when participant certifies in writing that no other form of proof of death is available and includes the number and physical location of livestock in inventory at time death occurs. Documentation must also be provided to support the number of livestock in inventory at the time the death occurred. The third party providing the certification must be a reliable source in a position to have knowledge of the dead livestock and shall not be affiliated with he operation such as a hired hand or a family member, etc. This program is excluded from coverage under OMB Circular No. A-87.
Application and Award Process (090)
Preapplication Coordination (091):
Preapplication coordination is not applicable. Environmental impact information is not required for this program. This program is excluded from coverage under E.O. 12372.
Application Procedures (092):
This program is excluded from coverage under OMB Circular No. A-102. This program is excluded from coverage under OMB Circular No. A-110. A notice of loss must be filed within 30 days of when the loss is apparant.
Award Procedure (093):
Indemnity payments to an eligible producer on a farm shall be made at a rate of 75 percent of the market value of the applicable livestock on the day before the date of death of the livestock, as determined by the Secretary for each specific livestock category; individual producers' eligible losses; and calculations will be performed separately by eligible livestock (by type, kind, and weight range) and producer type.
Deadlines (094):
Contact the headquarters or regional office, as appropriate, for application deadlines.
Range of Approval/Disapproval Time (095):
Not Applicable.
Appeals (096):
Not Applicable.
Renewals (097):
Not Applicable.
Assistance Consideration (100)
Formula and Matching Requirements (101):
This program has no statutory formula.
This program has no matching requirements.
This program does not have MOE requirements.
Length and Time Phasing of Assistance (102):
There are no restrictions place on the time permited to spend the money awarded. Method of awarding/releasing assistance: lump sum.
Post Assistance Requirements (110)
Reports (111):
No reports are required.
Audits (112):
No audits are required for this program.
Records (113):
No Data Available.
Financial Information (120)
Obligations (122):
(Direct Payments for Specified Use) FY 11 $23,894,000; FY 12 est $56,000,000; and FY 13 est $0 - Supplemental Agricultural Disaster Assistance is only effective for losses incurred as the result of a disaster, adverse weather, or other environmental conditions that occurred on or before September 30, 2011.
Range and Average of Financial Assistance (123):
Not available.
Program Accomplishments (130):
Not Applicable.
Regulations, Guidelines, and Literature (140):
Not Applicable.
Information Contacts (150)
Regional or Local Office (151) :
None.
Headquarters Office (152):
Lenior J. Simmons, FSA DAFO PECD, 1400 Independence Ave SW, Room 3640-S, Washington, District of Columbia 20250 Email: Lenior.Simmons@wdc.usda.gov Phone: (202) 720-9070.
Website Address (153):
No Data Available
Related Programs (160):
Not Applicable.
Examples of Funded Projects (170):
Not Applicable.
Criteria for Selecting Proposals (180):
Not Applicable.