CONGRESSMEN GRAY, FEENSTRA INTRODUCE BIPARTISAN LEGISLATION TO OFFER FAIRER MARKET PRICES FOR LIVESTOCK DISASTER ASSISTANCE PROGRAMS
WASHINGTON, DC – Congressmen Adam Gray (D-Merced) and Randy Feenstra (R-Iowa) today introduced bipartisan, bicameral legislation to give producers fairer market prices for their livestock through disaster assistance programs. The Livestock Indemnity Program (LIP) Improvement Act would require the Farm Service Agency to more regularly update the LIP payment rates that dictate livestock market prices.
“Valley farmers are among the world’s greatest producers of livestock,” said Congressman Gray. “When a producer loses any portion of their herd due to natural disasters, severe weather or disease, the impacts to their business operations may be devastating. This commonsense bill would make sure that when Valley producers lose livestock through no fault of their own, they are fairly compensated according to the most up to date market prices available.”
“When severe storms strike or animal disease spreads, Iowa cattle producers deserve a fair price for deceased livestock. However, under current law, payment rates from the Livestock Indemnity Program are only updated once a year – a lengthy period that does not accurately reflect unpredictable market conditions or support family farms,” said Congressman Feenstra. “My bill – the Livestock Indemnity Program Improvement Act – will cut that timeframe down to every three months so that our producers receive a fair and more accurate price for their livestock. Allowing the free market to work as intended will ensure that cattle producers are fairly compensated for losses out of their control.”
The LIP, administered by the USDA, provides benefits to livestock producers for livestock deaths not due to natural mortality, including in the event of adverse weather, attacks by animals introduced to the wild by the federal government, disease or natural disaster. Livestock producers are compensated at 75 percent of the average fair market value of livestock. Under current law, the fair market value of livestock must only be updated once annually. The LIP Improvement Act would require quarterly updates to valuation to better reflect the reality of a shifting market.
“Natural disasters take a heavy toll on cattle producers, especially when severe weather leads to livestock losses,” said Allison Rivera, Executive Director of Government Affairs at National Cattlemen’s Beef Association. “Many producers rely on the Livestock Indemnity Program for support during these challenging times, but the program needs to be updated in a timely manner so that cattle producers are reimbursed for the full value of their lost cattle. Our members appreciate Senator Rounds introducing the Livestock Indemnity Payment Improvement Act of 2023 to correct this issue and ensure that cattle producers are compensated at the fair market value of their livestock.”
“The Milk Producers Council fully supports commonsense additions to the Livestock Indemnity Program, including real-time market prices that reflect the actual reality during catastrophic events unforeseen by producers," said Kevin Abernathy, General Manager of the Milk Producers Council. "Programs like the Livestock Indemnity Program are producers’ only hope for relief when the wheels come off the train. We’re grateful to Congressmen Gray and Feenstra for their efforts to look out for producers across the country.”
The National Milk Producers Federation also supports this legislation.
###