02/06/2026
Livestock Indemnity Program as Disaster Assistance
James Mitchell, University of Arkansas
This week, many producers are taking inventory of the damages from the January 23-27 winter storm. In Arkansas, for example, these losses include a large number of poultry houses (with and without flocks in them), equipment, farm buildings, livestock, and horticulture. USDA has created programs to assist livestock producers following scenarios such as the one experienced last week. One of those programs is the Livestock Indemnity Program (LIP), which provides disaster assistance to eligible livestock producers and growers for deaths over normal mortality rates.
LIP eligibility depends on the occurrence of an eligible loss condition, proving loss in excess of normal mortality was directly caused by an eligible loss condition, ownership, and livestock type. The occurrence of an eligible cause of loss/death is not sufficient for eligibility. The occurrence of last week’s storm is not enough to be eligible for LIP. The livestock owner must provide evidence that last week’s storm directly caused the excess loss. The livestock producer must have legally owned the livestock on the day the loss/death from eligible cause occurred. Eligible losses caused by an eligible loss condition include injury and death over a normal mortality rate. All this crucially depends on livestock producers maintaining and producing detailed documentation to the Farm Service Agency (FSA).
Note, the above discussion includes injury as an eligible loss. Excess death is not the only damage that resulted from last week’s storm. Cattle might have lasting physical signs of last week’s events, which could cause cattle to receive discounts at marketing. Producers must provide documentation that livestock were sold at a reduced price due to an eligible cause of loss.
LIP payments are based on a national average fair market value. Given the strength of cattle prices this year, the market value used to calculate payments is relatively higher than in previous years. The LIP payment rate is 75 percent of this average market value (this is by design). For example, the 75% payment rate for a mature beef cow was $919.47 in 2021 and $1,810.09 in 2025.
After adjusting for normal mortality, LIP payments for excess livestock deaths are calculated by multiplying the national LIP payment rate for that livestock category by the number of eligible livestock in that category times the ownership share. For example, suppose a producer owns 40 beef cows at the beginning of last week's storm, and 4 are lost. Assuming 2 percent normal mortality, the number of cattle eligible for payment is 4 minus (40 times 2%) or 3 head (FSA rounds to the nearest whole animal). This producer's indemnity payment is 3 times $1,810.09 or $5,430.27 (see table). These calculations will vary by livestock type, type-specific mortality rate, and whether the loss was a death or injury, among other factors.
Contact your local Farm Service Agency office to apply for LIP. Eligible producers must file a notice of loss and application of payment within a defined time frame. For more details including deadlines and eligibility, see the USDA-FAS website.
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