The USDA on July 20 revised the payment rate for its Livestock Indemnity Program (LIP), nearly tripling compensation for young calves lost to producers. LIP payments, which are distributed through FSA, are based on 75% of “average fair market value.”
Spurred by the loss of thus-far-untallied cattle – most of which, according to reports, were young calves – to a string of spring blizzards that ripped through western North Dakota in April, the North Dakota Stockmen’s Association was heavily involved in writing the newly approved changes.
The change removes the bottom tier of the payment formula for calves lighter than 250 pounds, for which the value previously assigned was $175 per head, representing a market value of $233. LIP payments for all calves up to 399 pounds is now set at $475 per head, representing a market value of $632.
U.S. beef cattle inventory down 2%
As of July 1, 2022, there were 98.8 million head of cattle and calves on U.S. farms, according to the Cattle report published by the USDA’s National Agricultural Statistics Service (NASS). Other key findings in the report include:
- Of the 98.8 million head inventory, all cows and heifers that have calved totaled 39.8 million.
- The U.S. beef cow herd sits at 30.4 million head as of July 1, down 2% from a year ago.
- The milk cow population in the U.S. decreased to 9.45 million.
- The U.S. calf crop was estimated at 34.6 million head, down 1% from 2021.
- All cattle on feed equaled 13.4 million head, unchanged from 2021.
- All heifers 500 pounds and over totaled 15.6 million head.
- Steers weighing 500 pounds and over totaled 14.4 million head.
- Bulls weighing 500 pounds and over totaled 2 million head.
- Calves under 500 pounds totaled 27 million head.
To obtain an accurate measurement of the current state of the U.S. cattle industry, NASS surveyed approximately 15,400 operators across the nation during the first half of July. Surveyed producers were asked to report their cattle inventories as of July 1 and calf crop for all of 2022. All NASS reports are available at nass.usda.gov/publications
