Feenstra Leads Legislation to Improve Livestock Indemnity Program and Provide Accurate Market Prices for Iowa Cattle Producers

WASHINGTON, D.C. – 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 producers receive a fair market price for their livestock.

“When severe storms strike or animal disease spreads, Iowa cattle producers need a safety net that they can depend on and deserve a fair price for their livestock. However, under current law, payment rates from the Livestock Indemnity Program are only updated every year – a lengthy timeframe that does not accurately reflect unpredictable market conditions in the livestock industry,” said Rep. Feenstra. “My bill – the Livestock Indemnity Program Improvement Act – will cut that timeframe down to every three months so that our producers and their families receive a fair and accurate price for their livestock. I hope to see this legislation – which brings more pricing transparency to the livestock marketplace – included in the Farm Bill and signed into law to keep our producers financially stable during tough times.”

“Despite our best efforts as producers to mitigate risk, disaster and disease events can still cause devastating loss. The Livestock Indemnity Program is authorized to help producers recover, but updating the payment rates only once per year misses the mark,” said Rob Medberry, President of the Iowa Cattlemen’s Association. “The Iowa Cattlemen's Association appreciates Congressman Feenstra's commitment to support producers with LIP payments that more accurately reflect the market value of livestock.”

“Many cattle producers rely on the Livestock Indemnity Program when natural disasters cause livestock losses, effectively reducing the heavy burden placed on producers due to these severe weather events. This program is instrumental in providing aid during challenging times, but it needs to be updated so that producers are reimbursed based on the full value of their lost cattle,” saidAllison Rivera, Executive Director of Government Affairs at the National Cattlemen’s Beef Association. “America’s cattle producers appreciate Congressman Feenstra introducing the Livestock Indemnity Program Improvement Act of 2024 to correct this issue and ensure that cattle producers are compensated at the fair market value of their livestock.”

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

Full legislative text can be foundHERE.

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