The FSA’s Livestock Forage Disaster Program for Texas Dairies
When drought dries up grazing, a dairy that counts on pasture feels it in the feed bill within weeks. The Livestock Forage Disaster Program is a federal program aimed at that kind of loss, and it is worth understanding before you need it.
What is the Livestock Forage Disaster Program?
The program, often called LFP, is run by the Farm Service Agency and is meant to help eligible livestock producers who lose grazing because of certain qualifying drought or fire conditions. It is a payment program, not a loan, so it works differently from the FSA farm loans covered elsewhere.
Eligibility rules, payment calculations, deadlines and covered events are set by the agency and change over time. This independent guide cannot tell you what you qualify for. Use it to prepare questions, and take them to your county office.
How does drought fit in?
Programs of this kind generally tie to drought conditions as measured in a specific way, often using the U.S. Drought Monitor, together with the type of grazing you have. Ask the county office how drought is measured for eligibility and which of your acres might count.
Texas drought can vary sharply across short distances. A dairy in Central Texas may be in a different category from one in the Panhandle, and an operation with irrigated pasture may be treated differently from one on native grass. Drought.gov has background on conditions and outlooks.
Which dairies might be affected?
Dairies that rely on grazing, such as those with pasture for heifers, dry cows or part of the lactating herd, are the ones most likely to care. A confinement dairy that buys all its feed will usually have a different set of questions.
Ask whether your livestock and your land qualify, and what documentation shows that you own or lease the grazing land and the animals. Leases, ownership records and herd counts all matter.
- Proof of ownership or lease of grazing land
- Records of the type and number of livestock
- Information on the grazing season and pasture use
- Dated photos and notes of conditions
What records should you keep?
Good records make any program easier. Keep a file with herd inventory, pasture maps, lease agreements, feed purchases and dated photographs of conditions. If drought arrives, add notes on when you started supplemental feeding and what it cost.
Those same records support insurance claims, loan applications and tax returns. The IRS has guidance on how livestock sales forced by drought are treated for tax purposes, and an accountant can explain how that might apply to you.
Dates matter. Programs like this usually have a window for reporting losses and applying, and a missed deadline can cost you the benefit. Mark the calendar when drought conditions begin, and call the county office early instead of waiting until the season is over.
How does it compare with loans and insurance?
A payment program, a loan and an insurance policy are different tools. Payment programs may offset some losses without repayment, loans provide money you must pay back, and insurance pays under a contract you bought. Do not assume one replaces the others.
Review pasture and forage insurance with an agent and the RMA, and ask your lender how they view assistance in a drought year. Compare any credit offers from Farm Credit, banks or the FSA, and ask about timing, since payments may arrive after your bills do.
Do not forget your cattle. If forage fails, feed costs and body condition become the daily worry, so lean on a nutritionist and the herd-care basics at this dairy cow care guide while you sort out paperwork.
What can you do before the next dry spell?
Build a drought plan. Decide at what point you will start supplemental feeding, destock or buy hay, and know where the feed will come from. Talk to your AgriLife Extension agent and the Texas Department of Agriculture about drought resources.
Keep an eye on weather and market information, and stay in touch with your lender. For help with budgets, the farm money guide is a good start, and the beef cattle guide also covers pasture management. Over at farm.FM the dairy section and ranching section cover drought and feed, including a farm.FM story on drought and forage. This site is education only and does not make or arrange loans.
Sources and further reading
- USDA Farm Service Agency: FSA farm programs and loans
- FSA Farm Loans: FSA direct, guaranteed, microloan and emergency loan information
- U.S. Drought Monitor: weekly drought maps
- Drought.gov: national drought information
- IRS: federal tax guidance
- USDA Risk Management Agency: crop insurance
Ask locally: Your county FSA office is the place to confirm eligibility; AgriLife Extension can help with drought planning and records.
General education only, not financial, legal or tax advice, and Texas Dairy Loan Guide is not a lender. Rates, terms and deadlines change, so confirm current details with the lender or agency.