Sioux City Times

U.S. Rep. Randy Feenstra (R-Hull) has introduced the Livestock Indemnity Program Improvement Act, a piece of legislation designed to ensure that Iowa cattle producers receive fair market prices for their livestock. The bill aims to address the shortcomings of the current Livestock Indemnity Program (LIP), which only updates payment rates annually.

Feenstra stated, “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." He pointed out that the annual update of payment rates under the current law does not accurately reflect unpredictable market conditions in the livestock industry. His proposed bill would reduce this timeframe to every three months, providing more accurate pricing and financial stability for producers during challenging times.

Rob Medberry, President of the Iowa Cattlemen’s Association, agreed with Feenstra's sentiments, saying, "Despite our best efforts as producers to mitigate risk, disaster and disease events can still cause devastating loss." He expressed appreciation for Feenstra's commitment to supporting producers with LIP payments that more accurately reflect the market value of livestock.

Allison Rivera, Executive Director of Government Affairs at the National Cattlemen’s Beef Association, also supported Feenstra's initiative. She noted that many cattle producers rely on LIP when natural disasters cause livestock losses. However, she emphasized that the program needs updating so that producers are reimbursed based on the full value of their lost cattle.

Under current law, updates to LIP payment rates are made annually by the U.S. Department of Agriculture’s Farm Service Agency. Feenstra’s legislation proposes these price updates be made quarterly to account for turbulent and unpredictable market conditions more accurately.