LIP Enhancement Act of 2025
The Livestock Indemnity Program Enhancement Act of 2025 would expand the existing Livestock Indemnity Program (LIP) in the Agricultural Act of 2014 by adding a new, separate payment for unborn livestock losses. Effective for losses incurred on or after January 1, 2025, the bill directs the Secretary of Agriculture to provide an additional payment to eligible producers whose unborn livestock (i.e., fetuses) die beyond normal mortality caused by a specified condition. The payment is capped at up to 85% of the payment rate for the lowest weight class of the livestock and is calculated by applying a multiplier to that rate, depending on the category of unborn loss. Unborn losses are defined as pregnancies that were in gestation at the time of death. The program would be administered through the Farm Service Agency as part of the LIP framework. In short, the bill creates a new category of LIP assistance aimed at offsetting economic losses from in-utero deaths, with a structured payment formula and specific eligibility rules.
Key Points
- 1Adds new subsection (5) to Section 1501(b) of the Agricultural Act of 2014 to establish an “Additional payment for unborn livestock” under the LIP.
- 2Eligibility: eligible producers on farms that incur unborn livestock death losses that exceed normal mortality due to a condition specified in the program, effective for losses occurring on or after January 1, 2025.
- 3Payment rate cap: the unborn-loss payment rate must be determined by the Secretary and may be up to 85% of the payment rate established for the lowest weight class of the livestock (as determined by the Secretary through the Farm Service Agency).
- 4Calculation of payment amount: the unborn-loss payment is the determined rate multiplied by a category-based multiplier, where:
- 5- Multiply by 1 for categories A, B, or F of the related subsection (a)(4) of the LIP;
- 6- Multiply by 2 for category D;
- 7- Multiply by 12 for category E;
- 8- Multiply by the average number of birthed animals per gestation cycle for category G.
- 9Unborn livestock death losses defined: losses of livestock described in subparagraphs A, B, D, E, F, or G of subsection (a)(4) that were gestating at the time of death.
- 10Administrative framework: implementation and payment administration would be carried out under the Secretary, in coordination with the Farm Service Agency, consistent with how LIP payments are currently administered.