The USDA’s Farm Service Agency administers the Livestock Forage Disaster Program (LFP), which provides payments to livestock producers affected by drought. From 2008-22, the program distributed more than $12 billion (in 2022 dollars) in total to livestock producers throughout the U.S.
Annual LFP payments peaked in 2012 at more than $3 billion (in 2022 dollars) when severe, widespread drought conditions were prevalent throughout much of the central U.S., where much of the nation’s livestock production is concentrated. In general, years with widespread drought (such as in 2012, 2013 and 2022) are associated with larger total annual LFP payments.
LFP eligibility is based on drought severity as reported by the U.S. Drought Monitor. If drought conditions become more severe and common in the future because of climate change, LFP payments may increase, with potential impact on the federal government’s budget. — USDA Economic Research Service
