To receive an indemnity under LRP, producers have to demonstrate ownership interest in covered livestock on the day they purchased the endorsement. Documents deemed necessary and sufficient to
support verification of ownership interest are enumerated in LRP Basic Provisions Sec 12(c).

In particular, for covered unborn livestock or feeder cattle
raised by the insured (that the insured has not purchased or
otherwise obtained by other means), and not sold within 60 days of the SCE end date, one category of allowed documents are third party affidavits:

“[…] certified written statements from disinterested third parties such as feed suppliers or veterinarians who have visited the farm or ranch, who visually identified the livestock listed on the SCE (or cows that covered livestock are born to) and can attest to your ownership of the identified livestock prior to the end date.”

In definitions:

Disinterested third party – A person who does not have any familial relationship (parents, brothers, sisters, children, spouse, grandchildren, aunts, uncles, nieces, nephews, 1st cousins, or grandparents, related by blood, adoption, or marriage, are considered to have a familial relationship) with you or who will not benefit financially from the sale of covered livestock.

A question was raised this week – can the producer’s agent be such disinterested third party? The answer is no, they cannot.

The intent of requiring the affidavit to be signed by a disinterested party is to get an affidavit from the party who would not benefit from assisting an insured in engaging in waste, fraud or abuse of the program. 

An agent indirectly benefits from helping the insured report that they had an ownership interest in covered livestock on the SCE effective date. If the insured in fact did not have an ownership interest at the time when the endorsement is purchased, but approaches their agent with the request to sign a fraudulent affidavit, then the agent has the incentive to conspire with the insured, out of a fear that they may otherwise lose their business to a competitor agent who is not rule-abiding. To prevent such ‘shopping for unscrupulous agents’, the agent cannot be considered a disinterested third party.