New bill proposes fair livestock payments

By Scout Nelson

The agricultural industry is supporting a new legislation initiative spearheaded by U.S. Senators Mike Rounds (R-S.D.) and Amy Klobuchar (D-Minn.). To better represent current cattle market values, the cattle Indemnity Program (LIP) Payment Improvement Act, which was proposed in March, suggests that the Farm Service Agency (FSA) update the LIP payment rates on a quarterly basis as opposed to an annual basis.

The LIP provides financial support to livestock owners and contract growers who suffer abnormal livestock deaths due to eligible causes like severe weather or disease. Currently, the FSA updates payment rates once a year, but this new bill would make updates more frequent to align with market fluctuations.

The proposed legislation has already been included in the U.S. House Agriculture Committee’s version of the Farm Bill and is also part of the Senate Agriculture Committee’s Farm Bill framework. Senator Rounds emphasized the importance of fair compensation for livestock producers, especially when unforeseen events deplete their herds.

The bill has garnered widespread support from key agricultural organizations, including the National Cattlemen’s Beef Association, the South Dakota Farmers Union, and the South Dakota Stockgrowers Association.

These groups highlight the necessity of timely and accurate compensation to support the financial stability of livestock producers during challenging times.

South Dakota Stockgrowers Association’s Executive Director, Doris Lauing, underscored the importance of fair market-based payments, stating that the Livestock Indemnity Program must adapt to changing market conditions to protect producers' livelihoods.

Similarly, Allison Rivera from the National Cattlemen’s Beef Association stressed that the bill is essential for ensuring cattle producers receive full value for their lost livestock.

The bill is seen as a crucial step toward improving the farm safety net, ensuring that farmers and ranchers are adequately compensated when disaster strikes. The agricultural community eagerly awaits its inclusion in the final Farm Bill, recognizing its potential to enhance financial stability for producers across the nation.

Photo Credit:gettyimages-pamwalker68.