Department of Agriculture: Financial Assistance to Livestock Feeding Operations
| Report Type |
Reports and Testimonies |
| Report Date |
Dec. 17, 2024 |
| Release Date |
Dec. 17, 2024 |
| Report No. |
GAO-25-106347 |
Summary:
What GAO Found
From 2018 through 2023, the U.S. Department of Agriculture (USDA) provided $12.1 billion in total assistance to the top 10,000 agricultural producers—which we define as those that received the most federal financial assistance—who manage livestock feeding operations in the United States. A livestock feeding operation usually houses a single species in a confined setting, such as a building or open-air pen. Generally, livestock feeding operations, like other agricultural producers, must meet eligibility requirements to receive federal financial assistance from USDA programs.
From 2018 through 2023, the top 10,000 livestock feeding operations received the majority of their assistance from four USDA programs: the Coronavirus Food Assistance Program, Market Facilitation Program, Dairy Margin Coverage Program, and the Federal Crop Insurance Program. Dairy, hogs, and beef cattle were the three largest commodities to receive livestock feeding assistance from 2018 through 2023. Total annual subsidies for insurance for livestock increased from $3.8 million in 2018 to $411.3 million in 2023. Insurance subsidies can help protect operations against financial losses from commodity price declines and production losses due to natural causes. The increase in these subsidies shows larger participation in insurance for livestock—from 717 to 4,651 policies earning premium during this period.
The majority of livestock feeding operations out of the top 1,000 operations were located in California (209), Wisconsin (115), Minnesota (72), Iowa (70), and Texas (56), based on GAO’s review.
Distribution of the Top 1,000 Livestock Feeding Operations by State, 2018 through 2023
Note: We define the top 1,000 operations as those that received the most federal financial assistance.
The top 20 operations received $219.3 million in total assistance, with $164.4 million coming from insurance for livestock from 2018 through 2023. The average assistance for the top 20 operations was $11 million per operation over that time.
Why GAO Did This Study
The federal government provides agricultural producers tens of billions in financial assistance every year. This financial assistance covers revenue shortfalls related to commodity price declines or scarce harvests, among other things. From 2018 through 2023, programs administered by USDA increased the amount of assistance to agricultural producers who manage livestock feeding operations. Historically, the agency has provided most of its assistance to agricultural producers who grow crops.
GAO was asked to report on federal support for livestock feeding operations, including the amount of federal financial assistance and the characteristics of those operations. This report provides information on the amount of assistance provided to livestock feeding operations from 2018 through 2023 and describes key characteristics of operations that received this assistance, such as the total estimated number of animals and other associated entities. GAO reviewed relevant laws and agency documentation, analyzed USDA program financial data, and interviewed agency officials.
For more information, contact Steve Morris at (404) 679-3841 or morriss@gao.gov.
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