Proposed LIP Updates Rally Support

Proposed updates for livestock disaster assistance are causing a stampede of support.

LIP needs TLC: The Livestock Indemnity Program (LIP) administers payments to livestock producers who experience livestock losses through natural disasters, predators, or disease. Producers are paid 75% of fair market value for losses. 

However, the USDA’s Farm Service Agency (FSA) only updates prices annually. In March, U.S. senators Mike Rounds (R-SD) and Amy Klobuchar (D-MN) introduced the LIP Payment Improvement Act to update payments quarterly to better reflect market conditions. 

Soundbite: “South Dakota farmers and ranchers work hard to produce quality livestock. 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.” — U.S. Senator Mike Rounds

Many groups have championed the bill, saying it’s a necessary update to a vital safety net for producers.

Roll call: Agriculture and livestock stakeholders, such as the National Cattlemen’s Beef Association, as well as South Dakota groups, including the South Dakota Farmers Union, South Dakota Stockgrowers Association, South Dakota Cattlemen’s Association, and South Dakota Farm Bureau, came out in support of the bill.

In May, Rep. Randy Feenstra (R-IA) introduced the bill that was included in the House’s version of the farm bill, which has been passed out of committee. Meanwhile, the Senate’s version still awaits markup before it advances to the Senate floor.