Livestock Compensation Program

This program will provide immediate assistance to livestock producers in counties that have received primary disaster designation due to drought in 2001 and/or 2002.

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 - Farm Service Agency State Offices can inform applicants of county office locations where applicants may apply for assistance.

Program Accomplishments


Uses and Use Restrictions


Eligibility Requirements

Applicant Eligibility

Compensation for cattle, sheep, goats, buffalo, and catfish producers in counties that have received primary disaster designation due to drought in 2001 and/or 2002.

An eligible county must be approved as a primary county between January 1, 2001, and February 20, 2003, for Presidential or Secretarial disaster designation for damages and losses because of natural disaster.

Beneficiary Eligibility

Producers of cattle, sheep, goats, buffalo, and catfish.


All applicants must: (1) conduct a livestock operation that is physically located in a disaster county; (2) meet all other eligibility requirements established by the Secretary for the Program; (3) produce an animal described in section 10806(a)(1) of the Farm Security and Rural Investment Act of 2002 (21 U.S.C. 321d(a)(1)). In addition, Catfish producers must certify compliance with: (1) the adjusted gross income limitation contained in section 1001D of the Food Security Act of 1985 (7 U.S.C. 1308-3a); and (2) conservation compliance provisions according to regulations found at 7 CFR part 12.

Aplication and Award Process

Preapplication Coordination

There is no preapplication coordination related to this program.

This program is excluded from coverage under E.O.


Application Procedures

Applicants contact their local county Farm Service Agency Office or U.S. Department of Agriculture Service Center for sign-up information. In general, applicants will certify on the application form CCC-370, the number and type of eligible livestock owned or leased as of June 1, 2002. Documentation will be required from each applicant selected for a spot check that indicates all livestock for which payment was received that were sold or died after June 1, 2002. Owners or lessees of eligible livestock must certify the number owned or leased as of June 1, 2002. The animals must have been owned for 90 days or more and must fall within the 90-day ownership period.

Award Procedures





Section 32 of the Act of August 24, 1935, as amended. Section 203(a) of Agricultural Assistance Act of 2003, Public Law 108-07. Section 2103 of the Emergency Wartime Supplemental Appropriations Act for Fiscal Year 2003, Public Law 108-11.

Range of Approval/Disapproval Time

From 1 to 30 days.





Assistance Considerations

Formula and Matching Requirements

Adult beef cattle, buffalo, and beefalo (cows and bulls), $18.00 per head; Beef, dairy, buffalo, and beefalo replacement heifers (500 lbs. and over), $13.50 per head; Adult dairy cattle (cows and bulls), $31.50 per head; Beef, dairy, buffalo, and beefalo steers (500 lbs. and over), $13.50 per head; Nonbreeding beef, dairy, buffalo, and beefalo heifers (500 lbs. and over), $13.50 per head; Beef, dairy, buffalo, and beefalo bulls (500 lbs. and over), $13.50 per head; Sheep (All), born prior to June 1, 2002, $ 4.50 per head; Goats (All), born prior to June 1, 2002, $ 4.50 per head; Catfish feed, $34 per ton of feed purchased in calendar year 2002.

Length and Time Phasing of Assistance

Payment is made by check or direct deposit after determining applicant eligibility.

Post Assistance Requirements




Recipients under this program are subject to audit by the Office of the Regional Inspector General, U.S. Department of Agriculture.


Livestock producers or any other individual or entity receiving assistance for LCP shall maintain and retain financial books and records which will permit verification of all transactions for at least 3 years, following the end of the calendar year in which assistance was provided.

Financial Information

Account Identification



(Direct Payments) FY 07 $0; FY 08 est $0; and FY 09 est not reported.

Range and Average of Financial Assistance

Producers participating in LCP are subject to a $2.5 million gross revenue limitation per person or less for the preceding tax year. Payments are limited to $40,000 per person. There is no minimum amount of assistance that may be received by an individual producer.

Regulations, Guidelines, and Literature

Program is announced through news media and in letters to agricultural producers in the county. Regulations published in the Federal Register, 67 CFR Part 63070 and 7 CFR Part 3016. LCP Fact Sheet may be located online at

Information Contacts

Regional or Local Office

Farm Service Agency State Offices can inform applicants of county office locations where applicants may apply for assistance.

Headquarters Office

U.S. Department of Agriculture, Farm Service Agency, Production Emergency and Compliance Division, Washington, DC 20250.

Criteria for Selecting Proposals

All producers meeting eligibility requirements may receive assistance subject to the national payment factor. Applications are non-competitive.

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