When livestock die because of severe weather, disease or an attack by a protected predator, USDA’s Livestock Indemnity Program (LIP) pays part of what those animals were worth. It pays 75% of market value for most eligible losses and, since January 1, 2026, 100% for losses to federally protected predators.
LIP is run by the Farm Service Agency. The deadline for any year’s losses is March 1 of the next year, and the money depends on your records. Here is how it works.
What LIP covers
LIP pays livestock owners and some contract growers for deaths in excess of normal mortality caused by eligible events:
- Adverse weather
- Disease
- Attacks by animals reintroduced into the wild by the federal government or protected by federal law
The key phrase is “in excess of normal mortality.” LIP does not pay for the losses every herd has in a normal year. It pays for the extra deaths the event caused.
What changed in 2026
The Working Families Tax Cuts Act changed LIP in three ways, according to FSA:
- Predator losses pay 100%. Losses to predators that are endangered or federally protected now pay 100% of the determined market value, retroactive to January 1, 2026. Other losses stay at 75%.
- Unborn livestock are covered. LIP now covers unborn livestock death losses that happened on or after January 1, 2024. For 2024 and 2025, FSA says it will automatically issue those payments where eligible adult female losses are already on approved applications. Unborn livestock from females that did not die because of an eligible event are not covered.
- Higher market values when you can prove them. Payments use the higher of a national average market value or an alternative value backed by your own verifiable sales records, capped at 145% of the national average. FSA can also consider geographic price premiums.
How much it pays
LIP payments are a percentage of the market value FSA sets for each kind, type and weight class of animal:
| Type of loss | Payment |
|---|---|
| Death from adverse weather or disease | 75% of market value |
| Death from federally protected or reintroduced predators | 100% of market value |
| Unborn livestock (2026 and later) | Based on 85% of the market value of the lowest non-adult weight class, adjusted by FSA’s birthing and loss factors |
The deadline and what to file
For losses in a given year, file your notice of loss and application for payment with your county FSA office by March 1 of the following year. So for 2026 losses, that is March 1, 2027.
FSA asks for:
- Proof of your inventory before the loss
- Proof of the losses themselves
- Evidence of the event that caused them
Practical ways to build that record: dated photos, birth and purchase records, sale receipts, and notes made at the time. If a predator was involved, ask your county office what evidence it needs.
Related programs
LIP pays for deaths. Other FSA programs cover other kinds of livestock losses:
- LFP pays for grazing losses from qualifying drought. See our ELAP and LFP guide.
- ELAP covers livestock, honeybee and farm-raised fish losses other programs do not, like some disease and weather losses.
- ECP helps restore fences and farmland after a natural disaster. See our Emergency Conservation Program guide.
Our grants for cattle ranchers post pulls all of these together.
Frequently asked questions
What does the Livestock Indemnity Program pay? 75% of the market value FSA sets for each kind of animal for deaths above normal mortality from adverse weather or disease, and 100% for losses to federally protected or reintroduced predators.
Is there a deadline for LIP? Yes. File the notice of loss and application for payment by March 1 after the year the loss happened. For 2026 losses, that is March 1, 2027.
Does LIP cover calves that were never born? Yes, for losses on or after January 1, 2024, when the mother died in an eligible event. Unborn losses from females that did not die in an eligible event are not covered.
Can I get more than the national average price for my animals? Yes, if you have verifiable sales records showing a higher value. FSA uses the higher of its national average or your approved alternative value, up to 145% of the national average.
The bottom line
LIP is straightforward if your records are: report deaths above normal mortality, show what caused them and what you had, and file by March 1. If predators are part of your losses, the 2026 change to 100% of market value is worth a call to your county FSA office now.
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