Monday, March 21, 2011

Livestock Indemnity Program (LIP)

With the recent weather conditions and flooding risks that are predicted, livestock producers will want to make sure and keep accurate records of death losses, and, if there are losses due to extreme weather conditions (extreme cold, floods, and diseases caused by weather issues are just a few), make sure that the deaths are verified by a third party.

The reason for this is that the Farm Service Agency (FSA) office can provide a Livestock Indemnity payment for losses that occurred due to these events. Losses must be in excess of normal death loss rates and, as I mentioned above and cannot stress enough, must be verified by a third party not associated with the operation (a veterinarian, or someone from the FSA Office are your best bets).

To be eligible for a payment, losses must be reported to the FSA office within 30 days of the day the loss occurred and a request for payment must be made within 30 days of the end of the calendar year. I am sure that this post raises more questions than it provides answers so I would encourage you to contact your local FSA office for more details.

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