USDA has published a final rule that will allow implementation of certain provisions in the One Big Beautiful Bill Act, which was signed into law in July 2025. These provisions will allow USDA to expand disaster assistance coverage and increase benefits to help producers recover from eligible losses.
The Livestock Indemnity Program (LIP) now covers the loss of unborn livestock in cases of adult female death loss in excess of normal mortality due to an eligible loss condition. Payments for unborn calves will be less than or equal to 85% of the rate established for the lowest weight class of the same kind/type of livestock. This change applies retroactively starting January 1, 2024. In most cases, the payment will be automatic for 2024 and 2025 losses based on LIP data on file with the Farm Service Agency (FSA), requiring no action by the producer. Additionally, losses due to predation now will be compensated at 100% instead of 75% of market value under LIP. This change is effective for program year 2026 and moving forward.
Under the Livestock Forage Disaster Program, producers now are eligible for assistance after four consecutive weeks of severe drought (D2) or higher. Hitting that threshold during the normal grazing period unlocks eligibility for a one-month payment. If D2 or higher drought conditions continue for seven out of eight consecutive weeks, producers are eligible for a two-month payment. This change is effective for the 2026 program year and moving forward.
Federal regulations for the Emergency Livestock Assistance Program have been amended to clarify that livestock feed payments for an eligible producer will be calculated based on losses for no more than 150 grazing days during the program year.
For more information, contact the local FSA office.