Livestock Indemnity Program-2014 Farm Bill

LIP provides benefits to eligible livestock owners or livestock contract growers for livestock deaths in excess of normal mortality caused by adverse weather.

It also covers attacks by animals reintroduced into the wild by the federal government or protected by federal law, including wolves and
avian predators.
Related Programs

Agency - Department of Agriculture

Established in 1862, the Department of Agriculture serves all Americans through anti-hunger efforts, stewardship of nearly 200 million acres of national forest and rangelands, and through product safety and conservation efforts. The USDA opens markets for American farmers and ranchers and provides food for needy people around the world.

Office - See Regional Agency Offices.
Website Address

http://www.fas.gov



Program Accomplishments

Not Applicable.

Uses and Use Restrictions

LIP is a permanent program and provides retroactive authority to cover eligible livestock losses back to October 1, 2011.

Eligible livestock owners and contract growers will be compensated for eligible livestock deaths in the calendar year for which benefits are being requested as a direct result of an eligible adverse event.

Eligibility Requirements

Applicant Eligibility

To be eligible for benefits, an individual or legal entity must be a citizen of the United States (U.S.); Resident alien; Partnership of citizens of the U.S.; or Corporation, limited liability corporation, or other farm organizational structure organized under State law.

An eligible livestock owner must have had legal ownership of the eligible livestock on the day the livestock died and under conditions in which no contract grower could have been eligible for benefits with respect to the animal.

To be eligible an eligible owner"s livestock must have died as a direct result of an eligible adverse weather event occurring on or after October 1, 2011, no later than 60 calendar days from the ending date of the applicable adverse weather event, and in the calendar year for which benefits are requested.

An eligible contract grower must have had possession and control of the eligible livestock and a written agreement with the eligible livestock owner setting the specific terms, conditions and obligations of the parties involved regarding the production of livestock on the day the livestock died.

An eligible livestock for a livestock owner must be alpacas, adult or non-adult dairy cattle, buffalo, beefalo, elk, emus, equine, llamas, sheep, goats, swine, poultry, deer, or reindeer.

An eligible livestock for a contract grower must be poultry or swine.

The eligible livestock must have been maintained for commercial use as part of a farming operation before dying and on the day the eligible livestock died.

An eligible adverse weather event is defined as an extreme or abnormal damaging weather event that is not expected to occur during the loss period or which it occurred, which results in eligible livestock death losses in excess of normal mortality.

This includes but not limited to earthquake, lightning, tornado, tropical storm, typhoon, vog if directly related to a volcanic eruption, winter storm that last for three consecutive days and is accompanied by high winds, freezing rain or sleet, heavy snowfall and extremely cold temperatures, hurricanes, floods, blizzards, wildfires, extreme heat, extreme cold, anthrax, and a disease if exacerbated by other eligible adverse weather event.

Drought is not an eligible adverse weather event except when anthrax, which is exacerbated by drought, causes the death of eligible livestock.

Beneficiary Eligibility

The eligible livestock or contract owner will receive the ultimate benefit from LIP.

Credentials/Documentation

Verifiable proof of death of livestock must show that the death of the eligible livestock occurred as a direct result of an eligible adverse weather event or attacks by animals reintroduced into the wild by the Federal Government or protected by Federal law. Verifiable proof that documents or verifies that the livestock died as a direct result of an eligible event are, purchase records; veterinarian records, bank or other loan documents; rendering truck receipts or certificates, Federal Emergency Management Agency records; National Guar records, written contracts, production records; records assembled for tax purposes, property tax records; private insurance documents; or similiar documents.

If verifiable proof of death documentation is not available, the producer may provide reliable records such as beginning and ending inventory records as proof of death. Reliable records may include contemporaneous producer records existing at the time of the adverse weather event, dairy herd improvement records, brand inspection records, vaccination records, dated pictures, certification of livestock deaths by a third party, and livestock inventory reports.

Please contact a local FSA county office for additional information for documentation requirements for livestock deaths that occurred after October 1, 2011 through December 31, 2014. This program is excluded from coverage under OMB Circular No. A-87.

Aplication and Award Process

Preapplication Coordination

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

This program is excluded from coverage under OMB Circular No. A-102. This program is excluded from coverage under OMB Circular No. A-110. Eligible livestock and contract growers must submit a notice of loss and an application for payment tot he local FSA office who maintains their farm records. A notice of loss must be submitted within the earlier of 30 calendar days of when the loss of livestock is apparent to the producer or 30 calendar days after the end of the calendar year in which the loss of livestock occurred.

If the date of livestock death is on or after October 1, 2011 and before January 1, 2015, the Notice of Loss and application must be submitted by January 30, 2015. If the date of livestock death is calendar years 2015 and subsequent years, the Notice of Loss must be submited 30 days after death is apparent and the application must be submitted by January 30th of each year.

An eligible contract grower must provide a copy of the grower contract and the following supporting documentation

Award Procedures

Eligible livestock owners LIP payments are calculated by multiplying the national payment rate for each livestock category by the number of eligible livestock in each category. LIP national payment rate for eligible livestock owners are based on 75 percent of the average fair market value of the livestock.

The eligible livestock contract grower national payment rate is based on 75 percent of the average income loss sustained by the contract grower with respect to the dead livestock. The LIP payment will be reduced by the amount of monetary compensation received from their contractor for the loss of income suffered from the death of livestock under contract.

Deadlines

Contact the headquarters or regional office, as appropriate, for application deadlines.

Authorization

The Agricultural Act of 2014 (2014 Farm Bill), Title I, Part III, Section 1501, Public Law 113-79.

Range of Approval/Disapproval Time

Not Applicable.

Appeals

Appeal regulations set forth in parts 11 and 780 of 7CFR apply to determinations made under LIP.

Renewals

Not Applicable.

Assistance Considerations

Formula and Matching Requirements

Statutory formulas are not applicable to this program.
Matching requirements are not applicable to this program.
MOE requirements are not applicable to this program.

Length and Time Phasing of Assistance

There are no restrictions placed on the time permitted to spend the money awarded. Method of awarding/releasing assistance: lump sum.

Post Assistance Requirements

Reports

Not Applicable.

Audits

Not Applicable.

Records

Applicants receiving assistance for LIP shall maintain and retain financial books and records which will permit verification of all transactions for at least three years following the end of the calendar year in which assistance was provided and allow authorized representatives of USDA and the Government Accountability Office to inspect and verify all applicable livestock and acreage and to inspect, examine, and make copies of all financial books and records.

Financial Information

Account Identification

12-4336-0-2-351.

Obigations

(Direct Payments with Unrestricted Use) FY 13 $0; FY 14 est $117,400,000; and FY 15 est $76,941,000

Range and Average of Financial Assistance

No Data Available.

Regulations, Guidelines, and Literature

LIP regulations are found in part 1416 of 7CFR. Program is also announced through press releases, news media, and newsletters.

Information Contacts

Regional or Local Office

See Regional Agency Offices.

Headquarters Office

Scotty M. Abbott 1400 Independence Ave SW
Romm 4758-S
, Washington, District of Columbia 20250 Email: Scotty.Abbott@wdc.usda.gov Phone: 202-720-7997 Fax: 202 690 2130

Criteria for Selecting Proposals

Not Applicable.



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