FSA will calculate LFP payments for an eligible livestock producer for grazing losses because of a qualifying drought equal to payment factors of one, three, four or five times the LFP monthly payment rate. The LFP monthly payment rate for drought is equal to 60 percent of the lesser of either the monthly feed cost:
- For all covered livestock owned or leased by the
eligible livestock producer; or
- Calculated by using the normal carrying capacity
of the eligible grazing land of the eligible livestock
producer.
Total LFP payments to an eligible livestock owner or contract grower in a calendar year for grazing losses will not exceed five monthly payments for the same kind, type, and weight range of livestock.
In the case of an eligible livestock owner or contract grower who sold or otherwise disposed of livestock because of drought conditions in one or both of the two previous production years immediately preceding the current production year, the payment rate will equal 80 percent of the monthly payment rate.
FSA will calculate LFP payments for eligible livestock owners or contract growers for losses suffered because of a qualifying fire on federally managed rangeland
for which the producer is prohibited from grazing the normally permitted livestock. The payment begins on the first day the permitted livestock are prohibited from grazing the eligible rangeland and ending on the earlier of the last day of the federal lease of the eligible livestock producer or the day that would make the period a 180 calendar-day period. The payment rate is 50 percent of the monthly feed cost for the number of days the owner or contract grower is prohibited from having livestock graze the managed rangeland because of a qualifying fire, not to exceed 180 calendar days.
Payments Limitation
The Agriculture Improvement Act (2018 Farm Bill) established a maximum annual per person and legal entity payment limitation for LFP (without regard to any other program) of $125,000.
Therefore, for 2019 and subsequent program years, no person or legal entity, excluding a joint venture or general partnership, may receive, directly or indirectly, more than $125,000 total in payments under LFP. The average adjusted gross income (AGI) limitation relating to limits on payments for persons or legal entities, excluding joint ventures and general partnerships, with certain levels of AGI will apply. Specifically, a person or legal entity with an AGI (as defined in 7 CFR Part 1400) that exceeds $900,000 will not be eligible to receive LFP payments.
Direct attribution provisions apply to LFP. Under direct attribution, any payment to a legal entity will also be considered for payment limitation purposes to be a payment to persons or legal entities with an interest in the legal entity or in a sub-entity. To learn more, visit the Payment Eligibility and Payment Limitations fact sheet at fsa.usda.gov/payment-limitations.