(Courtney Sacco/Texas A&M AgriLife Marketing and Communications)
This year’s drought is still producing significant losses to many ranchers in the State of Texas. Today, we will look into two more USDA programs to help ranchers cape the drought, Livestock Forage Disaster Program and the Emergency Assistance for Livestock, Honeybees, and Farm-Raised Fish Program.
Dates & Deadlines
8/9/2022 – Gray County Beef Cattle Conference, Pampa
8/10-11/2022 – Texas Animal Manure Management Issues Conference, Fort Worth
8/11/2022 – Ochiltree County Wheatheart Conference, Perryton
8/19-20/2022 – Texas Sheep & Goat Expo, San Angelo
8/26/2022 – Reduce Winter Feeding with Stockpiled Forage and Winter Pasture, AgriLife Online
What We’re Reading
Shrinking cattle herd could equal high calf, beef prices – AgriLife Today
Texas cattle sales picking up due to drought – AgriLife Today
Cattle and beef markets 2022: The second half – BEEF
Inflation Reduction Act includes ag funding – Feedstuffs
USDA Programs to Support Drought Losses
This year’s drought is still producing significant losses to many ranchers in the State of Texas. Two weeks ago, we reviewed the Livestock Indemnity Program from the USDA for those producers affected by wildfires. Today, we will look into two more USDA programs to help ranchers cape the drought, Livestock Forage Disaster Program and the Emergency Assistance for Livestock, Honeybees, and Farm-Raised Fish Program. These programs do not require premiums or previous enrollment.
Livestock Forage Disaster Program
LFP provides payments to eligible livestock owners and contract growers who suffered a loss of grazed forage due to a qualifying drought. A livestock owner or contract grower who produces forage crops owned or leased is also eligible for payments from LFP.
Payments are calculated based on each county’s duration and intensity of the drought. The table below provides the monthly payments based on durations spent in each drought category.
Table 1. County Monthly Payments Designated Given Drought Status and Period
So far this year, most counties in Districts 1 and 3 qualify for payments under at least one crop, and in many counties, at least four payments (Table 2).
Table 2. Average Number of Payments for District 1 and 3 Counties.
Beef and dairy cattle, sheep, and goats are all eligible for payments, as is a long list of unique species. These include beefalo, buffalo, deer, equine, elk, reindeer, alpacas, emus, and llamas.
More important than the species is the grazing status of this livestock. Eligible animals include those that are or WOULD HAVE BEEN grazing the eligible land during the normal grazing period for a specific type of forage. Eligible livestock must have been owned, leased, purchased, or contracted during the 60 days before the beginning date of the qualifying drought. Eligible livestock includes those sold or otherwise disposed of due to drought conditions. Producers should own their livestock for commercial operations, not recreation or hunting.
Application Deadline
The application deadline for payments is due to the FSA office within 30 calendar days after the end of the year in which the grazing loss occurred (typically the end of January). Producers should provide supporting documents proving inventory.
Payments
The LFP monthly payment rate, applied based on the conditions outlined in the previous section, is equal to 60% of the lesser of either the monthly feed cost:
- For all covered livestock owned/leased or
- Calculated by using the normal carrying capacity of the eligible grazing land of the producer.
Total LFP payments to a producer will not exceed five monthly payments for the same kind, type, and weight range of livestock. Payment limits for LFP (without regard to any other program) are $125,000. AGI rules apply.
Table 3. 2022 Payment Rates for Common Livestock Species
LFP Month Payments
The table below shows the number of monthly payments for LFP-eligible crops. As of August 8, 2022, many counties already have at least four monthly payments this year.
Table 4. LFP Monthly Payments (August 8, 2022). Source: USDA
Using the 2021 Payment Rates table above and the number of eligible months from a select county below, you can estimate your total LFP payment for a given crop in a given county.
As an example, consider Wilbarger County native pasture as our payment crop. Producers of native pasture in Wilbarger County would be eligible for five monthly payments per cow. If they were grazing ten cows, their total payment would be $2,364.50 or $236.45/head.
Payment = Payment Rate * Payment Months = ($47.29/head * 10 head) * 5 = $2,364.50
Emergency Assistance for Livestock, Honeybees and Farm-Raised Fish Program (ELAP)
ELAP provides financial assistance to eligible producers of livestock, honeybees, and farm-raised fish for losses due to disease, certain adverse weather events, or loss conditions, including blizzards and wildfires. The program differs from LFP in that it provides payments for different perils. ELAP assists livestock feed and grazing losses resulting from the cost of transporting water to livestock due to an eligible drought; losses resulting from the additional cost associated with gathering livestock for treatment and/or inspection related to cattle tick fever, honeybee feed, colony and hive losses; and farm-raised fish feed and death losses.
A recent update includes provisions to help cover the cost of transporting feed for livestock that rely on grazing. This payment comprises places where:
- Drought intensity is D2 for eight consecutive weeks as indicated by the U.S. Drought Monitor;
- Drought intensity is D3 or greater; or
- USDA has determined a shortage of local or regional feed availability.
Payment Calculations
USDA will reimburse eligible ranchers 60% of feed transportation costs above what would have been in a normal year. USDA uses a national cost formula to determine reimbursement costs that will not include the first 25 miles and distances exceeding 1,000 transportation miles. The calculation will also exclude the normal cost to transport hay or feed if the producer normally purchases some feed.
A decision tool is available to estimate payments under the new ELAP provision. Note that this is not an application but will help you estimate expected payments under ELAP for feed transportation. To use the tool, producers will need:
- The number of truckloads for this year.
- Mileage per truckload this year.
- Share of feed cost this year (if splitting loads).
- The number of truckloads you normally haul.
- Normal mileage per truckload.
- Share of normal feed cost