Extreme heat and other severe weather events are taking a growing toll on cattle herds from north to south across cattle country. USDA officials are urging producers who’ve experienced death losses to consider the Livestock Indemnity Program (LIP) and, most importantly, to document those losses so they can be indemnified.
USDA Farm Production and Conservation Undersecretary Richard Fordyce acknowledges the losses themselves are difficult enough without a lot of red tape on top. Fordyce was a guest on “AgriTalk” with Michelle Rook on Wednesday, discussing LIP.
“That documentation after a death loss is is sometimes can be honestly traumatic,” Fordyce explains. “But you know anything that we think about that could that would that would verify that loss. You know, I always say a picture’s worth 1,000 words.”
He emphasizes documentation doesn’t have to be complicated or burdensome for producers already under stress.
“We all have cameras on our phones now,” he notes. “You know, photograph. You know, if there’s a video opportunity, you know, those kinds of things. Any kind of inventory records that you might have.”
Fordyce encourages cattle producers to lean on their local Farm Service Agency (FSA) staff to make sure they have what they need.
The Basics: How LIP Protects Your Herd’s Value
According to the FSA website, LIP offers financial compensation to livestock owners and contract growers who suffer significant livestock losses beyond normal mortality levels due to eligible adverse events. These events include adverse weather conditions, diseases, and attacks by federally protected animals. LIP also provides assistance to eligible livestock owners who must sell livestock at a reduced price because of an injury from an eligible loss condition. LIP helps mitigate the financial impact of these losses, enabling producers to recover and continue their operations.
How the Working Families Tax Cuts Act Upgrades LIP for 2026
Looking ahead, Fordyce says changes tied to federal legislation will adjust how some producers qualify and how payments are calculated.
He pointed to provisions related to the adjusted gross income (AGI) test under LIP: “With the Working Families Tax Cuts Act, there were some changes to a lot of our standing disaster programs, and LIP is no different,” he explains. “Some changes related to LIP that just go into effect for the 2026 calendar year are the ability to not hit a pay limit, the $900,000 adjusted gross income test. We still have to do that, but if 75% of income that drives the adjusted gross income test comes from agricultural activity, then the $900,000 AGI test then is removed.”
Fordyce also highlights a shift from relying only on national price values to allowing more localized pricing when calculating payments.
“We have national values on all different classes of cattle and all different types of livestock,” he says. “That national price, obviously, the folks in the local office can tell you what that is, depending on the class of cattle that are affected, but under the new conditions, you’ll be able to actually use a local price that can be substantiated through a local livestock market for your own personal situation, but the ability to prove up to a regional price or a local price, that that opportunity also exists now.”
For producers who feel national values don’t reflect what their cattle are really worth in their market, the ability to use local or regional prices could be an important change.
How Fast Can Producers Expect to See Payments?
For operations hit hard by heat stress or other weather events, speed of payment is critical. Fordyce says that once paperwork is in order and approved locally, LIP payments should move quickly.
While exact timing depends on the application and county process, he explains, “Once the application is completed and approved by the local county committee, it’s signed and certified, and it goes it goes to payment. So you know it’s going to be it’s going to be relatively quickly.”
He notes the funding source behind LIP is designed to support that quick turnaround.
“Most of our disaster programs, but LIP specifically, the funds to support that program come out of the Commodity Credit Corporation,” Fordyce says. “So, you know, payment would be very quick.”
Your Action Plan: Five Steps to Secure Your LIP Claim
For cattle producers facing current or future weather-related losses, Fordyce’s message centers on straightforward steps and available flexibility:
- Document immediately with photos or video on your phone and basic inventory records.
- Call or visit your local FSA office to clarify what’s needed and avoid guesswork.
- Watch the AGI provisions — if at least 75% of your income is from agriculture, you may avoid the $900,000 AGI cap starting in 2026.
- Ask about local or regional price options if national values don’t reflect your cattle’s true market value.
- File promptly so county committees can approve applications and trigger quicker payments backed by Commodity Credit Corporation funds.
While exact statewide or regional loss numbers will be released later, Fordyce says USDA expects LIP to remain a central tool for helping producers turn catastrophic death losses into at least partial financial recovery.
You can listen to Fordyce’s full conversation with Michelle Rook on “AgriTalk":
