Livestock Provisions in the Proposed House and Senate Farm Bills: A comparison Back »

Previous farm bills have provided language and funding for livestock producers facing abnormal mortality or grazing losses. Existing programs, with amendments, have been included in both the House (H.R. 2642) and Senate (S. 945) versions of the Federal Agriculture Reform and Risk Management Act of 2013.

The full description of the three programs discussed in this article can be found in Subtitle E, Section 1501, Supplemental Agriculture Disaster Assistance Programs. You can access pdf files for both the House Version and the Senate Version for more detailed information.

The Livestock Indemnity Program (LIP) provides a payment in response to excess livestock deaths resulting from attacks by animals reintroduced into the wild by the Federal Government or protected by Federal law, or adverse weather including hurricanes, floods, blizzards, disease, wildfires, extreme heat, and extreme cold. The Livestock Forage Disaster Program (LFP) offers protection from grazing losses due to qualifying drought conditions or fire on federally managed rangeland.  Emergency Assistance for Livestock, Honeybees and Farm-Raised Catfish (ELAP) provides aid to producers facing death loss caused by feed or water shortages, disease or other factors, as long as the loss was not covered by either LIP or LFP.

Under the expired Supplemental Agricultural Disaster Assistance section of the 2008 Farm Bill LIP compensated ranchers at a rate of 75% of market value for the losses caused by the disasters listed above. The current House version keeps this 75% payment rate, while the Senate version drops the rate to 65% of the market value. Market value for both versions is determined by the value of the applicable livestock on the day before the date of death.

LFP payments are based on qualifying drought conditions (as determined by the U.S. Drought Monitor) or fire on rangeland managed by a federal agency. The monthly payments made under the previous Farm Bill were based on monthly estimated feed costs and were equal to 60% of the estimated costs.

Both versions of the bill have detailed eligibility requirements and definitions for “normal carrying capacity” and “normal grazing period”. For full details see the links above.

The current House version retained much of the language from the 2008 Bill regarding LFP. The monthly payment rate for one month is defined as being equal to the 60 percent of the lesser of (1) the monthly feed cost for all covered livestock or (2) the monthly feed cost calculated by using normal carrying capacity. The number of payments will be determined by the number of weeks any area in the county is reported as D2 (severe drought), D3 (extreme drought) or D4 (exceptional drought) by the US Drought Monitor.

If the forage losses were due to fire on federally managed lands, the payment will be equal to 50 percent of the monthly feed cost for the total number of head covered by the Federal lease. 

The proposed Senate version provides two methods for determining producer eligibility for payments due to drought under LFP. The first retains the U.S. Drought Monitor report (see Table 1 for more on when payments are made) from the previous farm bill. The new method is a low precipitation trigger, defined as “…over the preceding calendar year, precipitation levels that are 50 percent or more below normal levels…”  The payment remains based on estimated feed costs, but drops the monthly payment to 50% of the estimated feed cost. Fire on federally managed rangeland continues to be covered under the Senate version.

The Senate Bill establishes LFP as the only source of livestock forage assistance. The version combines:

  1. The forage assistance functions of:
    • The noninsured crop disaster assistance program (NAP)
    • The emergency assistance for livestock, honey bees and farm-raised fish program of the Federal Crop Insurance Act and the livestock forage disaster program of the Federal Crop Insurance Act.
  2. The livestock forage disaster program of the Federal Crop Insurance Act

The Senate version also provides that producers could receive assistance for forage losses resulting from weather related situations beyond drought and fire, including flood, blizzard, hail, excessive moisture, or hurricane.

ELAP, under the 2008 Farm Bill, covered disaster losses not covered by other disaster programs, up to $50 million annually.  The current House and Senate proposals continue to provide additional emergency relief if losses are due to disease or adverse weather conditions that were not covered by either LIP or LFP. The funds can be used in cases where losses occurred due to feed or water shortages, disease, or other factors as determined by the Secretary.

Payment restrictions are included in each version for each program. Each version is clear that payments should not be paid under more than one program. Payment limits are detailed in Table 1.

Click Here for a printable version of Table 1.

Livestock Indemnity Program (LIP)

Senate (S.954)
House (H.R. 2642)
Payments made when death losses in excess of normal mortality occur due to:
  • Attacks by animals reintroduced into the wild by the Federal Government or protected by Federal law, including wolves
  • Adverse weather, including hurricanes, floods, blizzards, disease wildfires, extreme heat and extreme cold
Payment rate: Covers 65% of the market value of livestock on the day before the date of death of the livestock
Payments made when death losses in excess of normal mortality occur due to:
  • Attacks by animals reintroduced into the wild by the Federal Government or protected by Federal law, including wolves
  • Adverse weather, including hurricanes, floods, blizzards, disease wildfires, extreme heat and extreme cold
Payment rate: Covers 75% of the market value of livestock

Livestock Forage Disaster Program (LFP)

Senate (S.954)
House (H.R. 2642)

Payment rate: 50% of the lesser of:

A. The monthly feed cost for all covered livestock
B. The monthly feed cost calculated by using normal carrying capacity

Partial compensation (80%) if livestock were sold due to drought conditions in 1 or both of the production years preceding the current year.

Number of Payments: Based on drought intensity at any location in the county

  • D2 (severe drought) for minimum 8 weeks during normal grazing period=1
  • D3 (extreme drought) at any time =2
  • or minimum of 4 weeks during normal grazing period=3
  • D4 (exception drought) at any time=3

Based on 50% Precipitation

  • =1

Fire Compensation: 50% of the monthly feed cost for the total number of livestock covered by the Federal lease

Payment rate: 60% of the lesser of:

A. The monthly feed cost for all covered livestock
B. The monthly feed cost calculated by using normal carrying capacity

Partial compensation (80%) if livestock were sold due to drought conditions in 1 or both of the production years preceding the current year.

Number of Payments: Based on drought intensity at any location in the county

  • D2 (severe drought) for minimum 8 weeks during normal grazing period=1
  • D3 (extreme drought) at any time =3 or minimum of 4 weeks during normal grazing period=4
  • D4 (exception drought) for a minimum of 4 weeks=5

Fire Compensation: 50% of the monthly feed cost for the total number of livestock covered by

Emergency Assistance for Livestock, Honeybees, and Farm-Raised Catfish (ELAP)

Senate (S.954)
House (H.R. 2642)
Provides additional assistance to cover losses due to disease, adverse weather or other conditions not covered by LIP or FLP. Losses could include feed or water shortages, disease or other factors. Provides additional assistance to cover losses due to disease, adverse weather or other conditions not covered by LIP or FLP. Losses could include feed or water shortages, disease or other factors.

Program Funding Limits

Senate (S.954)
House (H.R. 2642)

LIP “use such sums as are necessary”

FLP “use such sums as are necessary”

ELAP $15 million annually

LIP: “use such sums as are necessary”

FLP “use such sums as are necessary”

ELAP $20 million annually

Maximum payments

Senate (S.954)
House (H.R. 2642)
$100,000 per person maximum for LIP, LFP and ELAP. $125,000 per person maximum for LIP, LFP, ELAP.

 

Sources:

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