South Dakota and National Ag Organizations Support Rounds’ Legislation to Reform Livestock Program

MITCHELL - Several agriculture stakeholders in South Dakota and across the nation are showing support for legislation introduced by U.S. Senators Mike Rounds (R-S.D.) and Amy Klobuchar (D-Minn.) which offers producers fairer market prices for livestock disaster assistance programs. The LIP Payment Improvement Act, which was introduced in March, would require the Farm Service Agency (FSA) to make quarterly updates to Livestock Indemnity Program (LIP) payment rates that reflect livestock market prices.

The LIP provides payments to eligible livestock owners and contract growers for abnormal livestock deaths caused by an eligible loss condition, such as severe weather, disease or animal attack. Currently, the FSA is required to update LIP payment rates annually. While the agency occasionally provides periodic price updates, the LIP Improvement Program would make these updates more frequently to reflect an ever-changing market.

The LIP Payment Improvement Act has been included in the U.S. House Agriculture Committee's version of the Farm Bill, which has been passed out of committee. The provision has also been included in both the majority and minority frameworks for the Senate Agriculture Committee's Farm Bill, which is awaiting markup.

"South Dakota farmers and ranchers work hard to produce quality livestock," said Rounds. "Unfortunately, extenuating circumstances such as severe weather or disease can deplete their herds and as such, hurt their operations. These producers deserve to be paid a fair and updated market price for their livestock when tragedy strikes."

The LIP Payment Improvement Act is supported by the National Cattlemen's Beef Association, the South Dakota Farmers Union, the South Dakota Stockgrowers Association, the South Dakota Cattlemen's Association and the South Dakota Farm Bureau.

"The South Dakota Stockgrowers Association, the oldest cattle organization in the United States, supports Senator Rounds efforts in maintaining updated and concise reports for our Livestock Indemnity Program with the Farm Service Agency. Our organization has always supported our livestock producers and we support all efforts to ensure their businesses and livelihood are protected," said Doris Lauing, Executive Director of South Dakota Stockgrowers Association. "Our ranchers invest a vast amount of time, labor and finances into building a quality herd. When extenuating circumstances such as severe weather or disease can deplete their herds it cripples their operations. These producers deserve to be paid a fair and updated market price for their livestock when tragedy strikes in which Senator Rounds is asking for. As market prices fluctuate, so should the program so cattle producers are reimbursed the full value."

"Natural disasters take a heavy toll on cattle producers, especially when severe weather leads to livestock losses," said Allison Rivera, Executive Director of Government Affairs at National Cattlemen's Beef Association. "Many producers rely on the Livestock Indemnity Program for support during these challenging times, but the program needs to be updated in a timely manner so that cattle producers are reimbursed for the full value of their lost cattle. Our members appreciate Senator Rounds introducing the Livestock Indemnity Payment Improvement Act of 2023 to correct this issue and ensure that cattle producers are compensated at the fair market value of their livestock."

"South Dakota Farmers Union applauds Senator Rounds and Senator Klobuchar for working to update the Livestock Indemnity Program (LIP) from an annual payment rate to a quarterly payment rate," said Doug Sombke, President of South Dakota Farmers Union. "With climate change plaguing many parts of the country, our emergency relief programs must adapt accordingly. Given these circumstances, it has become clear that an annual payment rate is not a reflective measure of the true market value for livestock. This change will provide flexibility to help farmers and ranchers due to climate-related impacts."

"In an ever-changing cattle market, timely and accurate compensation for livestock losses is vital to sustaining producers' operations," said Warren Symens, President of the South Dakota Cattlemen's Association. "The Livestock Indemnity Program Improvement Act is a crucial step toward fairer market prices and greater financial stability for South Dakota's hardworking producers. We commend Senator Rounds and Klobuchar for their bipartisan leadership in making these necessary updates."

"The South Dakota Farm Bureau appreciates Senator Rounds for introducing this bill that will benefit our 13,000 ranchers, farmers and rural families. It is critical that we have our voices heard and we're excited to hear progress is being made on getting this included in the Farm Bill," said Scott VanderWal, President of South Dakota Farm Bureau. "With an ever-changing market, it's important that cattle producers get fairly compensated when disaster strikes. This will go a long way in improving the farm safety net."

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