Fair market prices in new Livestock Bill

By Scout Nelson

In March 2024, U.S. Senators Mike Rounds (R-S.D.) and Amy Klobuchar (D-Minn.) introduced the Livestock Indemnity Payment Improvement Act. This legislation mandates the Farm Service Agency (FSA) to update the Livestock Indemnity Program (LIP) payment rates quarterly to align with the fluctuating livestock market prices.

The LIP provides financial compensation to livestock owners and contract growers for losses caused by severe weather, diseases, or animal attacks. Traditionally, the FSA updated these rates annually, but under the new bill, updates will become quarterly to reflect the dynamic market changes more accurately.

This legislative move has garnered support from several major agricultural stakeholders, including the National Cattlemen’s Beef Association and various South Dakota agricultural associations. They commend the effort to ensure that livestock producers are adequately compensated based on current market conditions, especially following catastrophic events that impact their herds and operations.

The bill has already made progress, being included in the U.S. House Agriculture Committee’s version of the Farm Bill and acknowledged in the Senate Agriculture Committee’s frameworks. Advocates like Doris Lauing of the South Dakota Stockgrowers Association and Allison Rivera from the National Cattlemen’s Beef Association emphasize the necessity of this update for protecting the livelihoods of cattle producers against natural disasters.

Overall, this legislative effort aims to make the Livestock Indemnity Program more responsive to market conditions, ensuring that producers receive a fair and timely reimbursement for their losses.

Photo Credits: usda-farm-service-agency