Summary:

The National Cattlemen’s Beef Association (NCBA) supports and works for Congressional funding and Administration programs that provide disaster relief for America’s beef producers when they are hit by natural disasters such as drought, flooding, hurricanes, blizzards, wildfire, and other catastrophic events. 

Following member-directed policy, NCBA’s staff works with USDA, the Administration, and members of Congress to ensure that assistance for natural disasters is provided through the timely funding and implementation of programs that will properly and effectively address the losses incurred by our producers.

These programs include USDA programs such as the Livestock Compensation Program (LCP), the Livestock Indemnity Program (LIP), and the Emergency Conservation Program (ECP). NCBA also monitors the implementation of this relief to assure that the programs are administered properly and that the funding makes it to those producers impacted by the disaster.

President Signs Disaster Relief Bill:

In the emergency supplemental bill (H.R. 2206, the U.S. Troop Readiness, Veterans' Care, Katrina Recovery, and Iraq Accountability Appropriations Act, 2007) signed by President Bush on May 25, 2007, Congress included $3 billion for agriculture disaster assistance.  On December 26, 2007, President Bush signed the final Appropriations Bill which contained language extending the eligibility dates for producers affected by natural disasters to December 31, 2007. 

Sign-up for Disaster Relief Programs: 
Sign-up for the new Livestock Compensation Program (LCP) and Livestock Indemnity Program (LIP) is currently ongoing.  The ad hoc disaster programs provide benefits to farmers and ranchers who suffered losses caused by natural disasters in recent years. 

LCP compensates livestock producers for feed losses occurring between January 1, 2005, and December 31, 2007, due to a natural disaster.  This can include producers who suffered losses resulting from blizzards that started in 2006 and continued into January 2007.  LIP compensates livestock producers for livestock losses between for the same time period. 

More information about LCP and LIP is available in a fact sheet titled, Agricultural Assistance Act of 2007, found on FSA's Web site, www.fsa.usda/gov; click on Disaster Assistance Programs. 

Efforts to Develop a Permanent Disaster Assistance Program: 

A permanent disaster assistance program was created and funded in the Senate version of the 2007 Farm Bill.  Conference on the 2007 Farm Bill is still pending. 

This permanent disaster relief program would combine the current Livestock Indemnity Program and Livestock Compensation Program and create a similar program that will operate on a permanent basis, as opposed to the current ad hoc system.

Ranchers struggle with difficult management, movement and sale decisions in the midst of a disaster, and that situation is worsened by the uncertainty of whether or not Congress will be able to provide any meaningful assistance.  NCBA supports programs that are permanent in nature as opposed to previous approaches of providing producers with assistance on an ad-hoc basis well after a catastrophic event. 

IRS Announces Tax Relief for Drought-Stricken Cattlemen:

The Internal Revenue Service (IRS) announced September 8, 2006, it will extend tax relief for ranchers who were forced to sell off large portions of their breeding stock as a result of drought conditions during 2002. 

In the past, NCBA worked to support the American Jobs Creation Act which contained a provision to amend Section 1033 (e) of the Uniform Tax Code. This amendment extended the tax deferment period for weather-related sales of livestock – known as involuntary conversions – from two years to four years, and gives the Secretary of the Treasury authority to further extend the deferral period. 

This IRS announcement (Notice 2006-82) provides relief not only for producers who have already been forced to liquidate herds, but also for any producer who is currently faced with selling livestock as a result of drought.  NCBA has been pushing for this tax relief for years, and this is a huge victory for cattlemen who have been impacted by continuing drought conditions. 

NCBA will continue to work on Capitol Hill and with appropriate  government agencies to ensure that agriculture policies continues to include effective disaster relief programs and that they are adequately funded. Effective and timely disaster relief for our members will continue to remain a priority for NCBA.