Western South Dakota's Only Ranch Station
Cattle in winter blizzard

Legislation would require quarterly updates to LIP rate

WASHINGTON, D.C.  – Legislation has been introduced that would require the Farm Service Agency (FSA) to make quarterly updates to Livestock Indemnity Program (LIP) payment rates that reflect livestock market prices.
The LIP provides payments to eligible livestock owners and contract growers for abnormal livestock deaths caused by an eligible loss condition, such as severe weather, disease or animal attack. Currently, the FSA is required to update LIP payment rates annually. While the agency occasionally provides periodic price updates, the LIP Improvement Program would make these updates more frequently to reflect an ever-changing market.
The LIP Payment Improvement Act is supported by the National Cattlemen’s Beef Association and the South Dakota Farmers Union.
Doug Sombke, President of South Dakota Farmers Union said, “With climate change plaguing many parts of the country, our emergency relief programs must adapt accordingly. Given these circumstances, it has become clear that an annual payment rate is not a reflective measure of the true market value for livestock. This change will provide flexibility to help farmers and ranchers due to climate-related impacts.”
U.S. Senators Mike Rounds (R-S.D.) and Amy Klobuchar (D-Minn.) introduced the legislation to offer producers fairer market prices for livestock disaster assistance programs.

“South Dakota farmers and ranchers work hard to produce quality livestock,” said Rounds. “Unfortunately, extenuating circumstances such as severe weather or disease can deplete their herds and as such, hurt their operations. These producers deserve to be paid a fair and updated market price for their livestock when tragedy strikes.”

Klobuchar added,  “Ranchers often make large financial investments in their livestock and sometimes face heavy losses due to natural disasters and other circumstances beyond their control,” said Klobuchar. “This bipartisan legislation will ensure ranchers have a safety net that more accurately reflects the market value of any lost livestock.”

 

People are also reading...

Weather

loader-image
Rapid City, US
10:03 am, April 13, 2024
temperature icon 78°F
overcast clouds
Humidity 20 %
Pressure 1008 mb
Wind 17 mph
Wind Gust: 24 mph
Visibility: 0 km
Sunrise: 6:11 am
Sunset: 7:34 pm

Market News

Share via
Copy link