Sen. Kevin Cramer (R-ND) wrote a letter to USDA Farm Service Agency Administrator Zach Ducheneaux asking to raise the assistance level for newborn calves under the Livestock Indemnity Program (LIP) following Blizzard Haley.
“Unfortunately, as producers have familiarized themselves with LIP, they have expressed concerns the payment rate for calves under 250 pounds does not accurately compensate them for the losses they incurred,” Cramer wrote.
The 2022 LIP fact sheet indicates that the payment rate per head for non-adult beef cattle weighing less than 250 lbs. is $175.27, far below the going rate for a calf of that size. The average price for calves that size, Cramer wrote, is $393, with a range of about $250-500. With LIP paying out 75 percent of an animal’s value, producers could receive $294. Cramer wrote,
“2021 in North Dakota was a difficult year, especially for ranchers,” since drought forced ranchers to purchase feed. “It is critical these producers receive meaningful relief as soon as possible,” Cramer continued.
