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March 2007
USDA Farm Service Agency's (FSA) 2005 Hurricanes Livestock Indemnity Program II (LIP-II) provides payments to livestock owners and contract growers for certain livestock deaths resulting from 2005 hurricanes Katrina, Ophelia, Rita or Wilma. Producers in certain counties of Alabama, Arkansas, Florida, Louisiana, Mississippi, North Carolina, South Carolina, Tennessee and Texas may be eligible for the program.
The Emergency Agricultural Disaster Assistance Act of 2006 (the Act), enacted in June, authorizes LIP-II. Under the Act, USDA's Commodity Credit Corporation (CCC) will provide up to $30 million in benefits to producers through LIP-II. FSA administers LIP-II on behalf of CCC.
Livestock producers may not receive LIP II benefits if they received payments for the same losses through other federal disaster programs such as the Livestock Indemnity Program, which FSA also administered in 2006, or the federal aquaculture grant program administered through state departments of agriculture.
Eligible LIP-II counties are those declared primary natural disaster areas by Secretary of Agriculture or designated a major disaster or emergency by the President for 2005 calendar-year hurricanes Katrina, Ophelia, Rita or Wilma. Counties contiguous to a primary county are also eligible. LIP-II losses in counties declared disaster areas due to Hurricane Dennis are not provided for in the 2006 Act. A complete list of eligible counties is provided in the PDF version of this fact sheet (512B), CLICK HERE.
Under the 2006 Act, certain LIP-II eligibility and payment criteria differ for livestock owners and contract growers. These differences and similarities are discussed below.
Under LIP-II, eligible livestock of livestock owners:
- Were adult or non-adult dairy cattle, beef cattle, buffalo, beefalo, catfish, crawfish, equine, sheep, goats, swine, poultry or deer;
- Died in an eligible county during an eligible hurricane and disaster period;
- Were maintained for commercial use as part of a farming operation on the day they died; and
- Before dying, were not produced for noncommercial purposes, including but not limited to wild free-roaming animals or animals used for recreational purposes such as pleasure, hunting, pets or for show.
Under LIP-II, eligible livestock of eligible contract growers:
- Died in an eligible county during an eligible hurricane and disaster period;
- Were maintained for commercial use as part of a farming operation on the day they died; and
- Before dying, were not produced for noncommercial purposes including, but not limited to, wild free roaming animals or animals used for recreational purposes such as pleasure, hunting, pets or for show.
To be eligible for LIP-II, a livestock owner or grower must:
- Have had legal ownership of the eligible livestock on the day the livestock died; or
- Have been a contract grower on the day the livestock died and had:
- Written agreement with the owner of the eligible livestock setting the specific terms, conditions and obligations of the parties involved regarding the production of livestock; and
- Control of the eligible livestock on the day the livestock died.
CCC calculates LIP-II payments by multiplying the national payment rate for each livestock category times the number of eligible livestock in each category.
Separate payment rates are established for eligible livestock owners and eligible livestock contract growers. Payment rates are listed in the PDF version of this fact sheet (512KB), CLICK HERE.
The LIP-II national payment rate for eligible livestock owners is based on 30 percent of the average fair market value of the livestock. The categories of eligible livestock for eligible livestock owners are:
- Adult buffalo or beefalo cows;
- Adult buffalo or beefalo bulls;
- Non-adult buffalo/beefalo;
- Swine, sows, boars, barrows, gilts over 150 pounds;
- Swine, sows, boars, barrows, gilts 50 to 150 pounds;
- Swine, feeder pigs under 50 pounds;
- Chickens, layers, roasters;
- Chickens, broilers, pullets;
- Turkeys, toms, fryers, roasters;
The LIP-II payment calculated for eligible livestock owners will be reduced by the amount the applicant received for livestock under the Livestock Indemnity Program, the Noninsured Crop Disaster Assistance Program or the federal aquaculture grant program.
The LIP-II national payment rate for eligible livestock contract growers is based on 30 percent of the average income loss sustained by the contract grower with respect to the dead livestock. The categories of eligible livestock for contract growers are:
- Chickens, layers, roasters;
- Chickens, broilers, pullets;
- Turkeys, toms, fryers, roasters;
The LIP-II payment calculated for an eligible livestock contract grower will be reduced by the amount the applicant received for specific poultry under the Livestock Indemnity Program and by the amount received from the contractor for the loss of income from dead livestock.
Producers may receive no more than $80,000 under LIP-II. An individual or entity whose adjusted gross income exceeds $2.5 million is ineligible for LIP-II benefits.
In the event that total eligible LIP-II claims exceed the Act's $30 million LIP-II cap, each payment will be reduced by a uniform national percentage determined by CCC.
Sign-up for LIP-II begins Dec. 11, 2006, and ends March 30, 2007.
Livestock producers must submit applications at the FSA office in the county where the eligible livestock were physically located on the applicable disaster date.
Livestock owners and contract growers should use the following guidelines when applying for LIP-II payments.
- Applicants must submit to CCC a completed application, a copy of their grower contract if the applicant is a contract grower and other supporting documents necessary to determine applicant eligibility. Supporting documents must show evidence of loss, current physical location of livestock in inventory and physical location of claimed livestock at the time of death.
- Applicants must provide adequate proof that the death of the eligible livestock occurred in an eligible county as a direct result of an eligible hurricane during the disaster period. The quantity and kind of livestock that died may be documented by: purchase records; veterinarian records; bank or other loan papers; rendering truck receipts; Federal Emergency Management Agency records; National Guard records; written contracts; production records; Internal Revenue Service records; property tax records; private insurance documents; and other similar verifiable documents as determined by CCC.
- Certifications of livestock deaths by third parties may be accepted only if both the following conditions are met:
- The livestock owner or livestock contract grower, as applicable, certifies in writing:
- That there is no other documentation of death available;
- The number of livestock were in inventory at the time the applicable hurricane occurred;
- Other details necessary for CCC to determine the certification acceptable; and
- Third parties provide their telephone number, address and a written statement containing:
- Detailed knowledge of the livestock deaths;
- Their affiliation with the livestock owner;
- The accuracy of the deaths claimed by the livestock owner; and
- Other details necessary for CCC to determine the certification acceptable.
Other application guidelines include:
- Payments may be made for eligible losses suffered by an eligible livestock owner or contract grower who is now deceased or is a dissolved entity if a representative who currently has authority to enter into a contract for the owner, or grower signs the application for payment. Proof of authority to sign for the deceased or dissolved entity must be provided. If an owner or contract grower is now a dissolved entity, all members at the time of dissolution or their duly authorized representative(s) must sign the application for payment.
- Data furnished by the applicant will be used to determine eligibility for program benefits. All required information must be provided.
- A minor is eligible to apply for program benefits if all eligibility requirements are met and one of the following conditions exists:
- The right of majority has been conferred upon the minor by court proceedings or statute;
- A guardian has been appointed to manage the minor's property and the guardian executes the applicable program documents; or
- A bond is furnished under which a surety guarantees any loss incurred for which the minor would be liable had the minor been an adult.
For more information about FSA and its programs, visit your local USDA Service Center or online at: http:www.fsa.usda.gov.
The U.S. Department of Agriculture (USDA) prohibits discrimination in all its programs and activities on the basis of race, color, national origin, age, disability, and where applicable, sex, marital status, familial status, parental status, religion, sexual orientation, genetic information, political beliefs, reprisal, or because all or part of an individual's income is derived from any public assistance program. (Not all prohibited bases apply to all programs.) Persons with disabilities who require alternative means for communication of program information (Braille, large print, audiotape, etc.) should contact USDA's TARGET Center at (202) 720-2600 (voice and TDD). To file a complaint of Discrimination, write to USDA, Director, Office of Civil Rights, 1400 Independence Avenue, SW., Washington, DC 20250-9410, or call (800) 795-3272 (voice) or (202) 720-6382 (TDD). USDA is an equal opportunity provider and employer.
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