Livestock losses reported due to storms

Due to the winter storms that occurred during the month of February, local Farm Service Agency (FSA) offices are receiving a number of applications under the Livestock Incentive Program (LIP). This livestock disaster program was included in the last farm bill to offer indemnity reimbursement to producers for above average death losses due to extreme weather events like our recent winter storms.

According to program guidelines, losses must be reported to the FSA office within 30 days of occurrence. As our recent storms were near the first of the month, the deadline to timely report losses will soon be upon us. These initial reports can be made in person at our office, or by phone.

LIP offers benefits based on a multi-year average price for eligible dead animals. "Normal" losses due to calving problems, disease, etc., are not included for indemnity, but should be timely reported through the year as they count toward normal mortality totals. Average normal mortality numbers must be reached before any death losses will be covered under the program.

For example, the normal mortality rate for beef calves under 400 pounds is 2.7 percent. If a producer has 100 head of calves in that category on the date of the applicable weather event, then three head would be attributed to normal mortality and the eligible number lost above that could qualify for indemnity coverage. The normal mortality for beef cows is 1.1 percent.

The 2011 indemnity payment rates for calves under 400 pounds is $336.04 per head; for calves 400-800 pounds, the rate is $490.68 per head; and for beef cows is $746.95. The dairy calf reimbursement is $249.38 per head, and for a dairy cow is $997.50.

As with any USDA disaster program, documentation is required to verify not only the death loss occurrence, but also the total livestock inventories for applicants. So what does it take to document eligible death losses?

As mentioned above, the program requires a report of loss within 30 days of the date of the death loss which can be completed by either phone or office visit. The death loss must then be verifiable in some way: dated pictures of the carcass, a veterinarian's certification of the loss and cause of loss, a rendering service pick up receipt, etc.

If other documentation is not available, verification by a third party may also be used. This should be a disinterested third party who is not a relative or business associate (not a spouse, employee, partner, etc).

The other part of the documentation needed is inventory. This is needed to verify the normal mortality status of the applicant's operation. We need to establish inventory numbers 1) on the day of the weather event, and 2) on the day the application for payment is filed.

Documentation can include vet's records, a financial statement provided to a lender, etc. A producer's contemporary record can also be used. This could be a tax record, record of inventory kept by the operation's "bookkeeper," or a notebook or calendar record of numbers, calves born or died, etc.

If you have questions about these provisions, please contact your local FSA Office. In Bourbon County, call (620) 223-1880.

The first deadline is the initial report within 30 days. The balance of the activity can be completed, then, as soon as desired but not later than 30 days after the end of the calendar year. According to the legislation, 2011 through Sept. 30 is the final year for LIP with Jan. 30, 2012 being the final opportunity to file the follow up application for payment.

Editor's Note: Doug Niemeir is the County Executive Director for the USDA/Farm Service Agency. He can be reached by emailing him at Douglas.Niemeir@ks.usda.gov.