New bill aims to boost fair livestock payouts

By Scout Nelson

The U.S. Senate has put forward a bill designed to offer a fairer deal to livestock producers hit by natural disasters. The bill, titled the Livestock Indemnity Program Improvement Act, targets the Livestock Indemnity Program (LIP), suggesting a shift from annual to quarterly updates of payment rates based on livestock market prices. This change aims to more accurately reflect the value of lost livestock due to events like severe weather, diseases, or animal attacks.

Currently managed by the Farm Service Agency (FSA), LIP offers financial aid to eligible livestock owners and contract growers who face unexpected livestock deaths from such disasters. Despite the FSA's efforts to adjust payment rates periodically, the proposed legislation emphasizes the need for more frequent updates to ensure payments mirror the dynamic livestock market.

Allison Rivera, the Executive Director of Government Affairs at the National Cattlemen's Beef Association (NCBA), highlights the importance of timely program adjustments. She notes that cattle producers can suffer significant financial strain due to natural disasters.

The improved frequency in updating payment rates, as outlined by the bill, is expected to provide more accurate compensation, helping producers recover more effectively from their losses.

This legislative effort marks a step toward more responsive and supportive measures for the agricultural community, ensuring that compensation for livestock losses keeps pace with market conditions.

Photo Credit -kansas-livestock-foundation