Published May 5, 2022

Hoeven Presses Ag Secretary to Ensure LIP Reflects Market Rates, Send Disaster Assistance

Written by
The Dakotan
| The Dakotan
[Image: Mabel Amber from Pixabay]
[Image: Mabel Amber from Pixabay]

WASHINGTON, D.C. — Senator John Hoeven this week pressed U.S. Department of Agriculture (USDA) Secretary Tom Vilsack to:

  • Ensure the Livestock Indemnity Program (LIP) national payment rates reflect actual market rates and covers losses due to eligible diseases.
    • This follows a roundtable discussion that Hoeven held with North Dakota livestock producers last week, where he gathered feedback on the available federal assistance, including under LIP and the Emergency Livestock Relief Program (ELRP).
    • Producers raised concerns about the LIP payment rate for calves under 250 pounds, along with uncertainty regarding coverage for losses due to diseases, like pneumonia.
  • Send out the $9.25 billion in disaster assistance for row crop producers as soon as possible.
    • Since securing the disaster aid in September, Hoeven has been pressing USDA officials, including Vilsack, Under Secretary Robert Bonnie and Farm Service Agency Administrator Zach Ducheneaux, to quickly distribute the aid and in a way that works for producers.
    • According to USDA, details of the row crop disaster program should be released later this month, with payments distributed soon after.

“Our livestock producers have been hit yet again with severe weather, which has impacted calving season. The 2022 LIP national payment rates do not appear to adequately cover the fair market rate for calves under 250 pounds, and we are pressing USDA to address this discrepancy as well as cover losses due to diseases so that livestock producers receive the support they need,” said Hoeven. “At the same time, input costs are rapidly increasing and many producers are still recovering from last year’s historic drought, so it is imperative that USDA get disaster payments out to producers as soon as possible.”

[Video: submitted]

Securing Livestock & Row Crop Disaster Aid

Last September, Hoeven worked as the lead Republican on the Senate Agriculture Appropriations Committee to provide $10 billion in agriculture disaster assistance, which includes $750 million for livestock producers and $9.25 billion to aid row crop producers who suffered losses due to droughts, hurricanes, wildfires, floods and other qualifying disasters in calendar years 2020 and 2021. 

USDA began sending phase-one ELRP assistance to ranchers last month, with payments set at 75% of producers’ 2021 Livestock Forage Program (LFP) payment. Phase two will begin later this year. USDA will provide row crop assistance using existing crop insurance data in a two-phase approach as well, beginning this spring.

Producers should contact their FSA county office or visit farmers.gov for more information.

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