United States Department of Agriculture s15

FACT SHEET UNITED STATES DEPARTMENT OF AGRICULTURE NEBRASKA FARM SERVICE AGENCY July 2009

Livestock Indemnity Program (LIP)

Background when the loss is  Emus apparent. The completed  Swine The 2008 Farm Bill created application for payment  Goats several new disaster and supporting  Llamas programs under the documentation must be  Poultry permanent disaster filed within 30 days after legislation. One of the the end of the calendar Eligible livestock includes all programs created is the year in which the loss types and weight ranges. The Livestock Indemnity Program occurred. eligible livestock must have (LIP). This program died in the calendar year for compensates producers for Eligible Damaging Adverse which benefits are being livestock death losses in Weather Events requested. excess of normal mortality due to adverse weather that  Wildfires All eligible livestock must be occurred on or after  Blizzard maintained for commercial January 1, 2008 and before  Tornado use as part of the farming October 1, 2011 on a  Lightning operation. Eligible livestock calendar year basis.  Flooding owners may apply if they  Extreme Cold owned the livestock on the Availability  Extreme Heat day they died.  Disease – must be No State, county or other exacerbated by an Applying for LIP disaster designation will be eligible adverse weather required to define an eligible event. Notice of loss must be filed LIP area. 30 days after the loss is Note: Drought is not an apparent. Signup eligible adverse weather event except when associated Proof of inventory and death  For 2008 losses, an with anthrax. of livestock must be provided owner must file a notice and may include but is not of loss and application Eligible Livestock limited to, any or a for payment along with combination of the following: supporting  Adult/non-adult beef documentation by cattle 1. Rendering truck receipts September 13, 2009.  Adult/non-adult dairy 2. Written contracts, bank  For 2009 losses that cattle or loan documents occur before July 13, a  Adult/non-adult 3. Veterinary records notice of loss must be buffalo/beefalo 4. Property or other tax filed by September 13,  Equine maintained for records 2009. The supporting 5. Insurance documents documentation and commercial use as part of the farming operation 6. A measurement service application for payment may be requested and  Elk must be filed by paid for by the producer  Reindeer January 30, 2010. 7. Producer and production  For subsequent losses, a  Deer records. notice of loss must be  Sheep filed within 30 days of  Alpacas Documentation must provide Beginning inventory x (Persons or legal entities that sufficient data that identifies: Normal mortality rate = have an average adjusted Total gross non-farm income that 1. Kind/type/weight range Example: exceeds $500,000 are not of livestock 100 non-adult beef over eligible for LIP.) 2. Number of livestock. 400 lbs. x .05 (normal mortality) = 5 (loss Definitions of Normal Third party certification may threshold) Mortality Rate be accepted only when participant certifies in writing B. Eligible number head The normal mortality rate is that no other form of proof of lost: the percentage of livestock death is available and that can be expected to die includes the number and Total number head lost – normally in a livestock physical location of livestock Loss threshold = Total operation during the calendar in inventory at time death year as a result of disease, occurs. Documentation must Example: injury, or other causes that also be provided to support 10 head lost – 5 (loss can routinely occur using the number of livestock in threshold) = 5 (eligible good livestock handling inventory at the time the number lost) practices. The normal deaths occurred. mortality rate is established C. Determine calculated by the FSA State Committee The third party providing the payment: after considering data for certification must be a each category and type of reliable source in a position Eligible number lost x livestock. to have knowledge of the payment rate x share = dead livestock and shall not calculated payment. For Additional Information be: Example: Additional information may 1. Affiliated with the 5 (eligible number lost) x be obtained at local Nebraska operation, such as a hired $487.04 (payment rate = FSA Offices or through the hand, etc. national market value) x FSA Web site at 2. A family member. 100% (owner’s share) = www.fsa.usda.gov/ $2,435.00 (calculated ______Payment payment). Payment will be issued on a per head The U.S. Department of Agriculture (USDA) prohibits discrimination in all its programs LIP payments to eligible basis. and activities on the basis of race, color, national origin, age, disability, and where livestock producers will be applicable, sex, marital status, familial based on: The LIP loss and payment status, parental status, religion, sexual orientation, genetic information, political calculation is the total of all beliefs, reprisal, or because all or part of an individual’s income is derived from any  75 percent of a fair calculated payments (C) for public assistance program. (Not all market value, as each type and weight range, prohibited bases apply to all programs.) Persons with disabilities who require determined by the minus any other disaster alternative means for communication of program information (Braille, large print, Secretary, for each compensation for the same audiotape, etc.) should contact USDA’s specific livestock loss which will equal the net TARGET Center at (202) 720-2600 (voice and TDD). To file a complaint of category; total calculated payment Discrimination, write to USDA, Director, Office of Civil Rights, 1400 Independence  Individual livestock amount. Avenue, SW., Washington, DC 20250-9410, or call (800) 795-3272 (voice) or (202) owners’ eligible losses. 720-6382 (TDD). USDA is an equal Payment Limitation opportunity provider and employer. Calculations will be performed separately by LIP will pay up to $100,000 eligible livestock (by type, annually, including any kind, and weight range). benefits received from SURE, LFP, and ELAP. LIP Loss and Payment Adjusted Gross Income Calculation: (AGI) A. Loss Threshold: For 2008 - $2.5 million For 2009 and future years - $500,000 Non-Farm AGI