Nebraska Recovery Roundup: Livestock Indemnity Program

Wildfires can result in devastating livestock losses. The USDA Farm Service Agency's Livestock Indemnity Program (LIP) was designed to help eligible producers recover financially when livestock deaths exceed normal mortality due to “eligible loss conditions,” including wildfires. 

LIP provides financial assistance for livestock that die as a direct result of a qualifying wildfire. In some cases, assistance may also be available for livestock that were injured by the wildfire and subsequently sold at a reduced price. 

There are four key pieces to qualifying for LIP 

1. A livestock owner must have legally owned the livestock on the day the livestock died and/or were injured by an eligible loss condition (wildfire)
2. Livestock must be used for commercial production and held for sale
3. Death or sale of injured livestock must happen within 30 days of an eligible loss condition
4. Livestock death losses must be beyond normal mortality.

Why records matter

One of the most important steps producers can take after wildfire is documenting losses. USDA requires evidence that supports both the livestock inventory before the fire and the losses that occurred afterward. Accurate documentation of normal death losses is equally important so they can be counted as part of normal mortality for the year.

It is critical producers maintain records of damages, expenses, livestock inventories, grazing records, dated photographs, receipts, veterinary records, third party certifications, brand inspections, rendering records, processing records, and correspondence related to the wildfire. Good documentation today can make the recovery process much smoother.

Payment Rates 

LIP payments for livestock death losses, adjusted for normal mortality, are calculated by multiplying the national payment rate for the applicable livestock category by the number of eligible livestock in that category times the producer’s share. The LIP national payment rates are calculated using market data based on the previous year. The 2025 rates were released April 11, 2025 (USDA FSA Notice LIP-12), and based on 2024 national average fair market value. Payment rates for select kinds, types, and weights are provided in the following table. Please note 2026 rates are not yet published. For a full listing of eligible animals, contact your local USDA FSA office. 

Work with your local USDA FSA office

Producers should also notify USDA FSA as soon as possible after discovering losses.  Local FSA staff can help producers determine eligibility, identify required documentation, and complete necessary forms. Even if producers are uncertain whether losses qualify, scheduling a conversation with the local USDA Service Center is often the best first step. For 2026 wildfire losses, producers who are seeking LIP support must submit their Notice of Loss and final application for payment by March 1, 2027. 

USDA disaster and conservation programs are often designed to address different types of wildfire losses. However, federal rules generally prohibit receiving multiple payments for the same loss, expense, or conservation practice. Producers should discuss all wildfire-related damages with their local USDA Service Center so staff can identify the combination of programs that best fits their situation.

In addition to program-specific eligibility requirements, USDA disaster and conservation programs are generally subject to payment limitations and Adjusted Gross Income (AGI) rules. These provisions can affect the amount of assistance a producer may receive. 

This Nebraska Recovery Roundup is brought to you by Nebraska Extension and the Center for Agricultural Profitability to provide timely information for producers and communities recovering from wildfire. Each installment highlights available resources and practical steps to support recovery. Follow the series and find wildfire recovery resources on the Center for Agricultural Profitability’s website, https://cap.unl.edu/recovery.