USDA on July 8 announced remaining farm safety-net changes authorized under the One Big Beautiful Bill Act, lowering drought triggers for livestock forage assistance and increasing livestock predation indemnity payments to 100% of market value.
Last month, the Farm Service Agency issued opportunities for eligible producers to increase base acres and expanded payment limitations.
Livestock forage disaster program
Among the most significant changes is an expansion of the Livestock Forage Disaster Program (LFP).
Previously, producers qualified for one monthly payment after eight consecutive weeks of severe drought. Under the new law, producers may now qualify after just four consecutive weeks of D2 (severe) drought on the U.S. Drought Monitor, effective retroactively to Jan. 1, 2026.
Producers may also receive a two-month payment if D2 drought conditions persist for seven of eight consecutive weeks during the normal grazing period.
According to USDA estimates, lowering the drought trigger will cost about $343 million annually. Combined with other disaster program improvements announced, the changes are expected to cost roughly $927 million per year.
The annual payment limitation for LFP remains $125,000 per person or legal entity.
USDA also announced a new forage crop insurance program available beginning with the 2027 crop year in 12 states: California, Idaho, Iowa, Michigan, Minnesota, Montana, Nebraska, North Dakota, Pennsylvania, South Dakota, Washington and Wisconsin.
The new production-based policy replaces Actual Production History coverage and offers three options:
• Yield Protection: Covers production losses.
• Revenue Protection: Covers revenue losses caused by yield declines, price declines or both.
• Revenue Protection with Harvest Price Exclusion: Covers revenue losses due to yield declines or lower harvest prices.
USDA encouraged producers to contact their crop insurance agent before the Sept. 30 sales closing date.
Full depredation coverage
USDA also expanded the Livestock Indemnity Program (LIP).
Beginning retroactively Jan. 1, 2026, producers will receive compensation equal to 100% of market value for livestock killed by federally protected predators or animals reintroduced into the wild by the federal government, including wolves and certain avian predators. Previously, only 75% of market value loss was compensated.
Gray wolves currently have populations in 10 U.S. states, primarily across the northern Rockies, Great Lakes region and Pacific Northwest. Mexican gray wolves are also found to harm livestock populations in New Mexico and Arizona.
The agency also will allow regional price premiums that exceed national average livestock prices when calculating payments.
In addition, producers who filed claims for eligible unborn livestock losses during 2024 and 2025 will automatically receive additional compensation using existing Farm Service Agency records. — Jake Zajkowski, DTN ag policy editor
