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LIVESTOCK INDEMNITY PROGRAM FACT SHEET - JULY 2019
Eligible Livestock Contract Growers
(Poultry and Swine)
Poultry and swine are the only kinds of livestock for
which contract growers can be eligible under LIP.
To be eligible for LIP, in addition to meeting all other
eligibility requirements for loss, a poultry or swine
contract grower must have had the following:
• 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.
Contract growers are not eligible for losses under LIP
for injured livestock that were sold at a reduced price
due to an eligible loss condition.
Eligible Loss Conditions
An eligible loss condition includes any of the
following that occur in the calendar year for which
benefits are requested:
• Eligible adverse weather event;
• Eligible disease; and
• Eligible attack.
Eligible adverse weather event means extreme or
abnormal damaging weather that is not expected to
occur during the loss period for which it occurred,
which directly results in eligible livestock losses. An
eligible adverse weather event must occur in the
calendar year for which benefits are requested. Eligible
adverse weather events include, but are not limited to,
as determined by the FSA Deputy Administrator of
Farm Programs or designee, earthquake; hail;
lightning; tornado; tropical storm; typhoon; vog, if
directly related to a volcanic eruption; winter storm, if
the winter storm lasts 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; and straight-line winds. Drought is not
an eligible adverse weather event except when
associated with anthrax, a condition that occurs
because of drought and results in the death of eligible
livestock.
Eligible disease means a disease that is exacerbated by
an eligible adverse weather event that directly results
in eligible livestock losses, including, but not limited
to, anthrax, cyanobacteria, (beginning in 2015 calendar
year) and larkspur poisoning (beginning in 2015
calendar year). In addition, eligible disease means a
disease that is caused and/or transmitted by vectors
and vaccination or acceptable management practices
are not available, whether or not they were or were not
implemented, that directly result in death of eligible
livestock in excess of normal mortality, including but
not limited to Blue Tongue, EHD and CVV.
Eligible attack means an attack by animals
reintroduced into the wild by the Federal Government
or protected by Federal law, including wolves and
avian predators, that directly results in either injured
livestock sold at a reduced price or death of eligible
livestock, in excess of normal mortality.
How It Works
Payments
Livestock Death Losses
LIP payments for livestock death losses, adjusted for
normal mortality, are calculated by multiplying the
national payment rate for the applicable livestock
category by the number of eligible livestock in that
category times the producer’s share. Current year
national payment rates are found at the end of this fact
sheet.
The LIP national payment rate for eligible livestock
owners is based on 75 percent of the average fair
market value of the livestock, as provided in Table 1.
The LIP national payment rate for eligible livestock
contract growers is based on 75 percent of the average
income loss sustained by the contract grower with
respect to the dead livestock, as provided in Table 2.
A contract grower’s LIP payment will be reduced by
the amount of monetary compensation received from
the owner for the loss of income suffered from the
death of livestock under contract.
Injured Livestock
For eligible livestock owners, LIP payments for
injured livestock that are sold within 30 days of the
date of an eligible loss condition at a reduced price due
to an eligible adverse weather event or eligible attack
are calculated by multiplying the national payment rate
for the applicable livestock category minus the amount
that the livestock owner received for the eligible
livestock in that category times the livestock owner’s
share. If injured eligible livestock are sold for more
than the national payment rate for the applicable
livestock category, there is no payment.
Payment Limitations and
Average Adjusted Gross Income (AGI)
For the 2017 and subsequent program years, there is
no per person or legal entity program year payment
limitation.
In evaluating average adjusted gross income, an
individual or entity is ineligible for payment under LIP
if the AGI of the individual or entity exceeds
$900,000.
Direct attribution provisions apply to LIP. Under direct
attribution, AGI provisions apply to the person or legal
entity applying for payment as well as to those persons
or legal entities with an interest in the legal entity or in
a sub-entity.
For more information on payment limitations, visit
fsa.usda.gov/limits.
Applying for LIP
Owners or contract growers may apply to receive LIP
benefits at local FSA offices.
Owners or contract growers who suffer livestock
losses due to an eligible cause of loss must submit a
notice of loss and an application for payment to the
local FSA office that serves the physical location
county where the livestock losses occurred. All of the
owner’s or contract grower’s interest in inventory of
eligible livestock in that county for the calendar year
must be accounted for and summarized when
determining eligibility.
An owner or contract grower must file a notice of loss
within 30 calendar days of when the loss of livestock
is first apparent as well as file an application for
payment within 60 calendar days after the end of the
calendar year in which the eligible loss condition
occurred.
For 2019 LIP losses, livestock owners and contract
growers may apply for 2019 LIP benefits in the
physical location county where the loss occurred.
The following table provides the final dates to file a
notice of loss and application for payment:
Contract growers of poultry or swine must submit a
copy of the grower contract and any other supporting
documents required for determining eligibility. Similar
to requirements for owners, supporting
documents must show evidence of loss,
current physical location of livestock in
inventory and location of the livestock
at the time of death.
Livestock Loss Documentation
Livestock owners and contract growers must record all
pertinent information (including the number and kind)
of all livestock and those adversely impacted by an
eligible loss condition resulting in either death losses
or injury and sales of injured livestock at reduced
price.
Owners who sold injured livestock for a reduced price
because the livestock were injured due to an eligible
adverse weather event or eligible attack, must provide
verifiable evidence of the reduced sale of the livestock.
The injured livestock must be sold to an independent
third party (such as sale barn, slaughter facility, or
rendering facility).
Documents that may provide verifiable evidence of
livestock sold at a reduced price include but are not
limited to:
• sales receipts from a livestock auction, sale barn
or other similar livestock sale facilities
• rendering facility receipts
• processing plant receipts
The documentation for injured livestock sales must
have the price for which the animal was sold as well as
information on livestock kind, type, and weight sold.
FSA will use information furnished by the applicant to
determine eligibility. Furnishing the required
information is voluntary; however, without all required
information, program benefits will not be approved or
provided.
More Information
This fact sheet is for informational purposes only;
other restrictions may apply. For more information
about FSA disaster assistance programs, visit
disaster.fsa.usda.gov or contact your local FSA
office. To find your local FSA office, visit
farmers.gov.