1. (a) Under this subpart, separate payment rates for eligible livestock owners and eligible livestock contract growers are specified in paragraphs (c) through (f) of this section, respectively. Payments for death losses are calculated by multiplying the national payment rate for each livestock category by the number of eligible livestock in excess of normal mortality in each category that died as a result of an eligible loss condition. Normal mortality for each livestock category will be determined by CCC on a State-by-State basis using local data sources including, but not limited to, State livestock organizations and the Cooperative Extension Service for the State. Adjustments will be applied as specified in paragraph (g) of this section.

2. (b) The market values of livestock, by kind, type, and weight class, as applicable, for the establishment of payment rates used in the payment calculation, are determined using the higher of:

   1. (1) The national average market value by livestock kind, type, and weight class, at the beginning of the program year based on the prior-year market data as determined by CCC;
   2. (2) The national average market value by livestock kind, type, and weight class, at the end of the program year based on the current-year market data, as determined by CCC;
   3. (3) A producer's verifiable market value for livestock of the same kind, type, and weight class, based on the market value closest to the date of loss or date of event that caused the injury, specific to the producer's operation and program year, established in accordance with § 1416.305(k), not to exceed 145 percent of the higher of the national average market values established in accordance with paragraphs (b)(1) and (2) of this section; or
   4. (4) Another price approved by CCC based on data showing market value the day before the livestock loss or the day before the date of the event that caused the loss.
3. (c) For losses due to an eligible adverse weather event or eligible disease, the LIP payment rate for eligible livestock owners is based on 75 percent of the determined market value of the applicable livestock kind, type, and weight class in accordance with paragraph (b) of this section.
4. (d) For losses due to an eligible attack, the LIP payment rate for eligible livestock owners is based on 100 percent of the determined market value of the applicable livestock kind, type, and weight class in accordance with paragraph (b) of this section.
5. (e) For losses due to an eligible adverse weather event or eligible disease, the LIP national payment rate for eligible livestock contract growers is based on 75 percent of the average income loss sustained by the contract grower with respect to the dead livestock. The rate that applies is based on the type, class, and weight of the animal at the time of the eligible loss condition and death.
6. (f) For losses due to an eligible attack, the LIP payment rate for eligible livestock contract growers is based on 100 percent of the average income loss sustained by the contract grower based on the applicable livestock kind, type, and weight of the animal at the time of the eligible loss condition and death.
7. (g) The LIP payment calculated for eligible livestock contract growers will be reduced by the amount the participant received from the party who contracted with the producer to raise the livestock for the loss of income from the dead livestock.
8. (h) Payments to livestock owners for losses due to sale of livestock at a reduced price because of injury from an eligible loss condition are calculated by multiplying the payment rate for each livestock category by the number of eligible livestock sold at a reduced price as a result of an eligible loss condition, minus the gross amount the eligible livestock owner received for the livestock up to the applicable established payment rate. In the event livestock sells for a reduced price that is in excess of the established payment rate, the payment rate will be subtracted, resulting in no payment for that livestock.

9. (i) Payments to livestock owners and contract growers for eligible unborn death losses are calculated as follows:

   1. (1) For program year 2024 and 2025, multiplying the number of eligible adult female livestock death losses, including losses due to eligible attacks, as provided in § 1416.305(l)(1), excluding swine, after normal mortality, by 40 percent of the payment rate established in accordance with paragraph (c) or (e) of this section for the livestock category, multiplied by the applicable birthing factor in paragraph (j) of this section;
   2. (2) For program year 2024 and 2025, multiplying the number of eligible adult female livestock death losses, including losses due to eligible attacks, as provided in § 1416.305(l)(2), including swine, after normal mortality, by 85 percent of the payment rate established in accordance with paragraph (c) or (e) of this section for the lowest weight class of the same kind and type of livestock, multiplied by the applicable birthing factor in paragraph (j) of this section; and
   3. (3) For program year 2026 and subsequent years, multiplying the number of eligible adult female livestock death losses that were bred and gestating at the time of death or injury, after normal mortality, by 85 percent of the payment rate established in accordance with paragraphs (c) through (f) of this section for the lowest weight class of the same kind and type of livestock multiplied by the applicable birthing factor in paragraph (j) of this section.

10. (j) The birthing factor for unborn livestock loss payment calculation is:

    1. (1) One for cattle (beef and dairy), bison, buffalo, beefalo, water buffalo, alpacas, caribou, horses, llamas, and elk;
    2. (2) Two for deer, goats, and sheep;
    3. (3) Twelve for swine; and
    4. (4) The factor established by CCC for any other livestock determined eligible by CCC.

[91 FR 42329, July 9, 2026]