Assistance for feed transportation costs expanded

In response to the severe drought conditions in the West and Great Plains, the U.S. Department of Agriculture (USDA) announces its plans to help cover the cost of transporting feed for livestock that rely on grazing. The USDA is updating the Emergency Assistance for Livestock, Honeybees and Farm-Raised Fish Program (ELAP), to immediately cover feed transportation costs for drought impacted ranchers.

“The duration and intensity of current drought conditions are merciless, and the impacts of this summer’s drought will be felt by producers for months to come,” said agriculture secretary Tom Vilsack. “This announcement is to provide relief, as ranchers make fall and winter herd management decisions.”

The ELAP provides financial assistance to eligible producers of livestock, honeybees and farm-raised fish for losses from disease, certain adverse weather events or loss conditions, as determined by the secretary of agriculture.

The ELAP already covers the cost of hauling water during drought and this change will expand the program, beginning in 2021, to cover feed transportation costs where grazing and hay resources have been depleted. This includes places where drought intensity is D2 for eight consecutive weeks, as indicated by the U.S. Drought Monitor; drought intensity is D3 or greater; or the USDA has determined a shortage of local or regional feed availability.

Cost share assistance will also be made available to cover eligible cost of treating hay or feed to prevent the spread of invasive pests, like fire ants.

Under the revised policy for feed transportation cost assistance, eligible ranchers will be reimbursed 60 percent of feed transportation costs, above what would have been incurred in a normal year. Producers qualifying as underserved (socially disadvantaged, limited resource, beginning or military veteran) will be reimbursed for 90 percent of the feed transportation cost, above what would have been incurred in a normal year.

For 2021, the initial cost formula of $6.60 per mile will be used (before the percentage is applied), but may be adjusted on a state or regional basis.

To be eligible for ELAP assistance, livestock must be intended for grazing, and producers must have incurred feed transportation costs on, or after, Jan. 1. Although producers will self-certify losses and expenses to the FSA, producers are encouraged to maintain good records, and retain receipts and related documentation, in the event these documents are requested for review by the local FSA County Committee.

The deadline to file an application for payment for the 2021 program year, is Jan. 31, 2022.

The USDA has authorized other flexibilities to help producers impacted by drought. USDA’s Risk Management Agency (RMA) extended deadlines for premium and administrative fee payments, and deferred and waived the resulting interest accrual, to help farmers and ranchers through widespread drought conditions in many parts of the nation.

Additionally, the RMA authorized emergency procedures to help streamline and accelerate the adjustment of losses, and issuance of indemnity payments to crop insurance policyholders in impacted areas, and updated policy to allow producers with crop insurance to hay, graze or chop cover crops at any time, and still receive 100 percent of the prevented planting payment.

This policy change supports use of cover crops, which improves soil health and can help producers build resilience to drought.