Livestock Indemnity Program (LIP)

What It Is
Under President Trump and Secretary Rollins’ leadership, USDA has timely implemented policy changes outlined in the Working Families Tax Cuts Act, also known as the One Big Beautiful Bill Act, as we celebrate the one-year anniversary of signing the act into law. The Act makes a historic investment in American agriculture including expanding disaster assistance program coverage for producers

What It Is

The Livestock Indemnity Program (LIP), administered by the Farm Service Agency (FSA), offers financial compensation to livestock owners and contract growers who suffer significant livestock losses beyond normal mortality levels due to eligible adverse events. These events include adverse weather conditions, diseases, and attacks by federally protected animals. LIP helps mitigate the financial impact of these losses, enabling producers to recover and continue their operations.

Who Is Eligible

Eligible applicants include livestock owners and contract growers who have experienced livestock deaths in excess of normal mortality due to adverse weather, disease, or attacks by federally protected animals. Applicants must provide verifiable documentation of the losses and meet all program requirements.

Working Families Tax Cuts Act Program Updates

The Working Families Tax Cuts Act expands eligibility for livestock losses, including:  

  • Predation Losses: Payment rates for livestock losses due to predation from animals listed as endangered or protected will increase to 100% of the determined market value. Payment rates for all other eligible livestock losses remain at 75% of the determined market value. This change is retroactive to Jan. 1, 2026. 
  • Unborn Livestock Coverage: LIP covers unborn livestock losses that occurred on or after Jan.  1, 2024.   
    • Retroactive Compensation (2024 and2025): FSA will retroactively compensate unborn livestock death losses for eligible losses occurring on or after Jan. 1, 2024. 
    • For program years 2024 and 2025, FSA will automatically issue unborn livestock loss payments for livestock categories where eligible adult female losses are already documented on approved applications. 
    • Approved applicants who reported gender collectively will be able to revied their approved application to to identify adult female losses. 
    • Beginning in the 2026 program year, FSA will update livestock categories and establish corresponding market values.  Payments for eligible unborn death losses will be calculated using the applicable birthing factor and 85% of the lowest non-adult weight class market value of the same livestock kind, times the appliable loss factor, as applicable.  
    • Livestock sold due to injury from an eligible loss event and livestock stillborn or aborted from adult females that did not die due to an eligible loss event are not eligible. 
  • Alternative Market Value Option: Producers can provide verifiable sales documentation to support and request an alternative market value for their eligible livestock to be used for the payment calculation when it exceeds the national average market price established for eligible livestock losses. LIP payment calculations are based on the higher of the established national average market values or the producer’s approved alternative market value, not to exceed 145% of the national average market value. This change is retroactive to Jan. 1, 2026.
Important Dates

Final Date to file Notice of Loss and Final Date to Submit an Application for Payment: March 1 after the program year in which the loss occurred.

How To Apply

To apply for the Livestock Indemnity Program, producers must complete and submit a notice of loss and an application for payment to their local FSA office. The process includes providing documentation of the livestock losses and the eligible adverse events that caused the losses. Detailed enrollment instructions and deadlines are available through the local FSA office.

Link
Find Your FSA Location
How It Works

Program Features:

LIP payments are based on a percentage of the determined market value of the livestock kind, type, and weight category and type of eligible loss.

  • Predation Losses: The payment calculation for livestock losses due to predation from animals listed as endangered or protected is 100% of the determined market value. 
  • All Other Losses: The payment calculation for all other livestock losses remains at 75% of the determined market value.
  • Unborn Livestock Losses:  The payment calculation for unborn death losses is 85% of the lowest non-adult weight class market value of the same livestock kind, times the applicable birthing factor and loss factor above, as applicable. 

Market Values of Livestock and Payment Calculation

For program year 2027 and subsequent years, the market values of livestock, by kind, type, and weight class, as applicable are determined using the higher of:

  • National average market value by livestock kind, type, and weight class at the beginning of the program year, based on prior-year market data as determined by the Secretary;
  • National average market value by livestock kind, type, and weight class at the end of the program year, based on current-year market data as determined by the Secretary;
  • The producer’s verifiable market value for the same livestock kind, type, and weight class specific to the producer’s operation and program year, not to exceed 145 percent of the higher of the national average market values established by the Secretary

Documentation Requirements 

  • Applicants must provide verifiable documentation of livestock inventories, death losses, and the event that caused the losses. Acceptable documentation may include veterinary records, production records, purchase receipts, inventory records, photographs, or other supporting information. 

Additional LIP Benefits

  • Financial Relief: LIP provides crucial financial assistance to livestock producers facing significant losses, helping them recover from unexpected adverse events.
  • Economic Stability: By compensating for excessive livestock losses, LIP supports the economic stability of livestock operations and rural communities.
  • Risk Management: LIP is part of a broader suite of USDA disaster assistance programs designed to help producers manage risk and ensure the continuity of agricultural production.
Additional Resources