With much of Oklahoma in the midst of a drought, local farmers and ranchers might be looking for assistance when it comes to the health and well-being of any livestock on their land. We spoke to our Commercial Lending Officer, Bobby McAlpine, who specializes in Recreational and Agricultural Lending, about a government program that could offer relief.
McAlpine is an expert in the industry with the last 15 years spent in East Central Oklahoma banking and building relationships with land and livestock owners.
1) What is the USDA’s Livestock Forage Program?
The USDA’s Livestock Forage Program (LFP) provides financial support to ranchers and farmers who have experienced grazing losses due to a qualifying drought or fire. This program is part of the USDA’s broader safety net, offering aid when conditions disrupt the ability to graze livestock. A critical resource, the Livestock Forage Program gives direct assistance for producers to cover feed costs and other expenses when natural forage isn’t available.
2) Who is eligible to apply for the Livestock Forage Program and what criteria must be met? Are there any timelines or deadlines associated with the LFP?
Eligibility for aid with the LFP primarily hinges on the type of livestock you raise and in what county you operate. LFP is available to livestock producers in counties designated as “D2” (severe drought) or worse by the U.S. Drought Monitor. Eligible livestock typically includes beef cattle, dairy cattle, horses, sheep, goats, and others raised for commercial purposes. Additionally, you must have a risk in grazing land, either through ownership or a lease, and meet certain income limits, as outlined by the USDA.
The timeline for application is critical with the application period usually beginning as soon as drought conditions are verified. Eligible producers are encouraged to file claims within 30 days of experiencing grazing loss due to drought with the annual deadline to apply typically being near the end of January for the previous grazing period. Staying in touch with your local USDA Farm Service Agency (FSA) office is recommended, as they can provide exact dates and ensure timely submission.
3) Given the current drought conditions, how can farmers or ranchers maximize the support of the Livestock Forage Program?
File Promptly: Apply as soon as your region is designated as eligible. An early submission can help you get funds sooner and alleviate financial strain.
Keep Detailed Records: Document all forage losses, cattle counts, and grazing acres affected. Accurate records are essential to receive the maximum eligible benefits.
Understand Stacking Opportunities: Assistance from the LFP can be combined with other programs like the Noninsured Crop Disaster Assistance Program (NAP) for additional support, depending on your operation’s needs.
Communicate with FSA Regularly: The FSA office can provide guidance on maximizing benefits and navigating any unique requirements due to the drought’s severity.
4) What role can locals banks, like Mabrey, play in helping farmers navigate a drought or apply for the LFP?
Outside of possible assistance from the federal government, banks like Mabrey can help our local farmers with competitive loans to purchase hay or feed. They can also possibly modify existing payments as needed to address the loss of livestock due too little to no forage on their property.
If a farmer is thinking about selling livestock due to the lack of forage, there is a chance those livestock will need to be replaced in the future once conditions turn around. Those are good discussions to have now with their banker to prepare for any 2025 purchases. Sharing financial challenges and successes with your banker, while being open to financial education from your bank, helps create a strong partnership that ultimately results in a better outcome for you.
5) How can land-owners financially plan to ensure they are prepared to weather this current drought or one in the future, even if they don’t qualify for the LFP?
Financial planning for small, medium, and large farms can be a complex process and having a good banker that understands how the agricultural industry works is always a big advantage. One item to think about when planning ahead for possible challenges would be a working line of credit with semi-annual or annual payments set around selling seasons – whether it be livestock, row crops or hay.
Another thing I’ve heard several of farmers preach over the years is to always stock up on hay. You never know when a drought, bad winter or a fellow farmer in need may come along. A lot of years it seems hay will be sold back and forth across our state lines as each state around us, including Oklahoma, has times of drought, natural disasters and then years of surplus of rain.
If you are a farmer, rancher or landowner and are looking for a trusted banking partner who knows your industry and unique challenges, send an email to bmcalpine@mabreybank.com.