Missouri Dairy Business Update

Volume 14, Number 4
April 2014

USDA - Livestock Forage Program
(drought payments for dairies that graze)

USDA Farm Service Agency (FSA) offices are accepting signups for the Livestock Forage Disaster Program (LFP) to cover grazing losses due to drought, going back to October 1, 2011.

Download Factsheet: http://www.fsa.usda.gov/Internet/FSA_File/lfp_long_fact_sht_2014.pdf

Key Points:

Every dairy producer with pasture acreage should complete an application at their local FSA office. Sign up lasts till the end of the year. Even confinement dairy operations with heifers on pasture may still qualify for some payments.

All Missouri counties qualified during the drought of 2012. Some counties in Missouri also qualified for additional drought payments in 2013.

LFP payments are based upon paying up to 5 months of 60% of the lessor of:
1) Monthly Livestock Feed Cost for All Covered Livestock
2) Monthly Feed Cost Using Normal Carrying Capacity

Many Missouri dairy producers are going to find their payments limited by the "Monthly Feed cost Using Normal Carrying Capacity" method of calculating payments. Still, the payments can be quite significant. Make time to connect with your local FSA office.