Sheep Producers Can Apply For Livestock
Indemnity Payments
The
long-awaited details of the first livestock indemnity program to assist
sheep producers who have had death losses in excess of the normal
mortality due to adverse weather were released today. The rule will be
effective July 13, 2009.
The U.S.
Department of Agriculture's (USDA) Farm Service Agency (FSA) announced
in the Federal Register the specific requirements for the Livestock
Indemnity Program (LIP). LIP provides disaster assistance for producers
with livestock losses in excess of normal mortality due to adverse
weather such as hurricanes, floods, blizzards, disease, wildfires,
extreme heat and extreme cold. Losses must have occurred on or after
Jan. 1, 2008, and before Oct.1, 2011.
"The
American Sheep Industry Association (ASI) strongly supported a permanent
disaster fund in the 2008 Farm Bill," comments Peter Orwick, ASI
executive director. "Ad Hoc disaster bills were proving to be difficult
to timely secure with the U.S. Congress but the inclusion of the trust
in the new Farm Bill puts the authority with the USDA secretary.
"LIP is the
first of the five permanent FSA administered supplemental agricultural
disaster assistance programs that will be made available through the
Agricultural Disaster Relief Trust Fund.
Producers
who have suffered a potentially eligible loss of livestock prior to July
13, 2009, must provide a notice of loss to the FSA office by Sept. 13,
2009.
The 2008
Farm Bill provisions require LIP payments to be made at a rate of 75
percent of the market value of the livestock on the day before the date
of the death of the livestock. Payment eligibility will be based on
actual losses in excess of normal mortality for the calendar year for
the loss. Producers can receive up to $100,000 through disaster
assistance programs.
FSA,
through the state FSA offices, will establish the normal mortality rate
for sheep on a state-by-state basis. Payments are only available for
losses beyond normal mortality over the course of the year. ASI has
worked with USDA since April to expand the livestock market reports for
values on breeding sheep and young lambs which will be crucial to fair
payments under LIP.
"With
millions of dollars in payments at stake, we all agreed that cull ewe
prices would not be at all appropriate for deaths of valuable breeding
sheep," concludes Orwick.
Producers
are asked to contact their local FSA office for additional details and
for the application.
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