The USDA’s Farm Service Agency announced last week that it is updating the Livestock Indemnity Program payment rate to support livestock producers in the Midwest who have lost cattle to the extreme heat and humidity experienced this summer. To help ranchers to reflect a trend towards higher cattle weights in feedlots, the 2023 LIP payment rate for beef calves over 800 pounds will see an increase of $374.
LIP provides benefits to livestock owners and some contract growers for livestock deaths exceeding normal mortality from eligible adverse weather events, certain losses and reduced sales prices due to injury from an eligible loss.
The updated payment rate is effective immediately for all eligible causes of loss including excessive heat, tornado, winter storms, and other qualifying adverse weather. Producers who have already received LIP payments for 2023 losses will receive an additional payment.