WASHINGTON, D.C. — U.S. Senator Kevin Cramer (R-ND) wrote a letter to the U.S. Department of Agriculture’s (USDA) Farm Service Agency (FSA), urging FSA Administrator Zach Ducheneaux to provide accurate relief to eligible livestock owners for deaths under the Livestock Indemnity Program (LIP) following recent winter storms in North Dakota.
“North Dakota suffered from Blizzard Haley and the subsequent snow, ice, rain, and wind storms which resulted in cattle producers having a number of their livestock perish, particularly calves. Thankfully, the U.S. Department of Agriculture’s Livestock Indemnity Program (LIP) is in place to assist producers who had above normal livestock fatalities as a direct result of the storms. Unfortunately, as producers have familiarized themselves with LIP, they have expressed concerns the payment rate for calves under 250 pounds does not accurately compensate them for the losses they incurred,” wrote Senator Cramer.
LIP payment rates are 75% of the fair market value of livestock using nationwide prices for the previous calendar year. In 2022’s calculations, assistance for non-adult beef cattle weighing less than 250 pounds is roughly $175. However, in today’s market, cattle prices for under 250 pound calves range from $250 to $500 with an average price of approximately $393, meaning producers could receive a price of $294, significantly higher than the current LIP payment.
“2021 in North Dakota was a difficult year, especially for ranchers. The state was ravaged by significant drought, producers were forced to procure feed from alternative sources, and, in many instances, they were forced to cull herds it took them years to build. Now in 2022, producers lost a number of calves and expended significant feed resources to keep their livestock warm and fed. It is critical these producers receive meaningful relief as soon as possible,” continued Senator Cramer.
In the letter, Senator Cramer calls for USDA to “accurately compensate producers for the livestock they lost.” Senator Cramer also request the agency look into “whether the weight categories under LIP should be reexamined.”
Click here to read the letter.
