The U.S. Department of Agriculture is making significant changes to the Livestock Indemnity Program, providing additional financial protection for livestock producers who suffer eligible animal losses. Administered through USDA’s Farm Service Agency, the Livestock Indemnity Program, or LIP, helps compensate producers when livestock deaths exceed normal mortality because of eligible weather events, disease, or predator attacks. One of the biggest changes takes effect retroactive to January 1, 2026.
Producers who lose livestock to federally protected or endangered predators will now be eligible for payments equal to 100% of the animal’s market value, compared to the previous reimbursement rate of 75%. USDA is also expanding the program to cover unborn livestock losses beginning January 1, 2024. The department says many producers who previously filed eligible claims will receive those additional payments automatically using information already on file with the Farm Service Agency, meaning no new application will be required in most cases.
Another change allows producers to document regional price premiums when local livestock values exceed the national average market price used by USDA, helping ensure payments more accurately reflect actual market conditions. The Livestock Indemnity Program is one of several Farm Service Agency safety net programs updated this month as USDA implements provisions included in the Working Families Tax Cuts Act. Livestock producers with questions about eligibility or these new program improvements are encouraged to contact their local USDA Farm Service Agency office.
Audio Reporting by Elizabeth Sanders for Southeast AgNet.