Livestock Compensation Program reviewed

Requirements have recently been announced by the Farm Service Agency for the Livestock Compensation Program (LCP). Signup for LCP is currently underway at local FSA county offices.

The 2005-2007 LCP provides benefits to livestock producers who suffered feed losses or incurred additional feed costs directly resulting from natural disasters occurring between January 1, 2005 and Feb. 28, 2007. (The specific disaster occurrences are shown below.)

Eligible livestock must have been owned on the start date of the disaster designation and physically located in the disaster county.

Livestock owners must have suffered an eligible feed loss from produced or purchased forage or feedstuffs, or incurred additional feed costs as a result of the disaster event.

Eligible livestock include beef, buffalo, dairy, deer, elk, equine, goats, reindeer, poultry, sheep, and swine that are used as part of a farming operation and not for recreational purposes.

The first thing we will look at will be grazing loss. To evaluate this factor, we will need to know all livestock numbers divided into adult animals and calves over 500 pounds. All pastures will need to be identified by type (native, fescue, etc.) and the percentage of grazing loss will then need to be certified.

If eligibility is not determined with grazing, then documentation must be provided with the FSA-901 application to prove the feed loss or any additional feed costs occurring as a direct result of an eligible disaster event. Supporting documentation can include verifiable purchase records, vet records, bank or other loan papers, rendering truck receipts, FEMA records, National Guard records, written contracts, production records, IRS records, property tax records, private insurance documents, sales records, and similar documents.

Eligible disaster designations for Bourbon County are as follows (The Linn and surrounding county designations are comparable):

There are some other designations for storms, etc. If those affected your operation, please inquire about how they could affect you.

Livestock producers incurring feed losses in more than one of the 2005, 2006 and 2007 calendar years may only receive assistance for one year.

LCP benefits may not exceed the smaller of the calculated payment rate or the value of the feed loss as determined by FSA. LCP has a payment limitation of $80,000. Also, an individual or entity whose average adjusted gross income (AGI) exceeds $2.5 million for three years immediately preceding the calendar year for which benefits are requested is ineligible unless 75 percent or more of the income is from agriculture.

Payment rates for each eligible livestock can be found on the LCP Fact Sheet at www.fsa.usda.gov, and then click on Disaster Assistance Programs. Payments are reduced by amounts received under previous 2005 Feed Indemnity Programs, 2005 Hurricanes LCP, or the 2006 Livestock Assistance Grant Program.

After livestock producers have gathered all the supporting documentation needed to apply for this program, they shall contact the local FSA county office to schedule an appointment to file a LCP application.

Payments cannot be issued until applicable Federal Regulations are published.

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