Feenstra Introduces Legislation to Improve Livestock Indemnity Program and Support Iowa Cattle Producers

HULL, IOWA – Today, U.S. Rep. Randy Feenstra (R-Hull) introduced legislation – the Livestock Indemnity Program Improvement Act – to make needed updates to the Livestock Indemnity Program (LIP) so that Iowa cattle and livestock producers receive a fair market price for their livestock.

Under current law, the U.S. Department of Agriculture’s Farm Service Agency only makes annual updates to LIP payment rates. Feenstra’s legislation would make these price updates quarterly to accurately account for turbulent and unpredictable market conditions.

“When severe storms strike or animal disease spreads, Iowa cattle producers deserve a fair price for deceased livestock. However, under current law, payment rates from the Livestock Indemnity Program are only updated once a year – a lengthy period that does not accurately reflect unpredictable market conditions or support family farms,” said Rep. Feenstra. “My bill – the Livestock Indemnity Program Improvement Act – will cut that timeframe down to every three months so that our producers receive a fair and more accurate price for their livestock. Allowing the free market to work as intended will ensure that cattle producers are fairly compensated for losses out of their control.” 

“Livestock producers work tirelessly to prevent disease, mitigate risk, and remain resilient in the face of disaster. Yet, even with every precaution, losses still occur. That’s why regular updates to payment rates in the Livestock Indemnity Program (LIP) are essential to help producers recover. The Iowa Cattlemen’s Association appreciates Congressman Feenstra's commitment to cattlemen and ensuring LIP payments reflect the current market value of livestock,” said Rob Medberry, President of the Iowa Cattlemen's Association.

The National Milk Producers Federation also supports this legislation.

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