Veneman Announces $150 Million In Aid To Drought-Stricken Farmers And Ranchers

Agriculture Secretary Ann M. Veneman Monday announced that $150 million in supplemental feed is being made available to farmers and ranchers operating cow-calf operations in areas most severely stricken by drought. 

 “President Bush and this Administration continue to be concerned about the impact of severe drought conditions to farmers in certain states,” said Veneman.  “This additional funding for supplemental feed, coupled with the many other programs we have expedited in recent months, will provide much needed relief to farmers in the most devastated areas.”

NCBA has worked closely with the Administration to try and provide immediate drought assistance while Congress works to pass additional disaster assistance funding. 

The Secretary also reiterated that the Bush Administration would support emergency assistance for drought-stricken producers and pledged to work with the Congress upon return from recess to complete legislation.  Veneman said that while the Administration continues to provide immediate relief through various programs, including crop insurance, any assistance should meet certain criteria, including being funded through budget offsets and targeted to producers who are most in need, particularly those without access to additional risk management tools.

“Severe drought conditions have been particularly devastating to livestock producers in many states and the President and I are working to ensure assistance is readily available to help those in the greatest need,” said Veneman.  “When Congress considers additional drought relief upon their return from recess, they must ensure that it is fiscally responsible and doesn’t raise taxes, increase the budget deficit or utilize Social Security funds.”

Veneman also said the President has asked her to examine additional risk management tools for forage and pasture crops, including crop insurance, that might be available in an expedited manner to assist livestock producers suffering from the drought. 

Under the new program announced today, states initially eligible will be Colorado, Nebraska, South Dakota and Wyoming.  At least 75 percent of the pasture and range crop in these states is currently rated as poor or very poor.  USDA will provide assistance only for future purchases of feed for beef cow-calf operations, and not for past expenses. 

USDA will work in cooperation with feed mills to help distribute the supplemental feed.  USDA will make available existing stocks of non-fat dry milk to be used in the production of feed.  Currently, USDA has over 1.4 billion pounds of non fat dry milk in storage, of which one third is two years old or older.  Stocks older than three years are unusable for human consumption. 

The program will use both USDA’s Commodity Credit Corporation (CCC) authority and Agricultural Marketing Service’s Section 32 authorities and will run through Dec. 31, or until available funds are exhausted, whichever comes first. 

Additional program information, including signup information, will be announced in the next few weeks.  For further information, producers should contact their USDA Service Center, or Farm Service Agency County Office.

“This assistance will help producers who are continuing to suffer drought and loss of pasture,” Veneman said.  “ This effort is one more way USDA is working to use every program available to assist farmers and ranchers who are facing difficult times.”

Veneman also said USDA continues to utilize all existing authorized programs and has worked aggressively to expedite relief where possible, this year to assist farmers and ranchers to help recover from crop losses.  They include:

Federal Crop Insurance. Federal crop insurance provides indemnities for production and revenue losses.  Program participation has increased sharply as a result of program improvements enacted in 2000, with 80 percent of the nation’s eligible acreage enrolled in 2001 and a similar level expected this year. 

The Emergency Conservation Program (ECP): ECP shares with agricultural producers the cost of rehabilitating eligible farmlands damaged by natural disaster. During severe drought, ECP also provides emergency water assistance — both for livestock and for existing irrigation systems for orchards and vineyards. ECP may be made available in areas without regard to a Presidential or Secretarial emergency disaster designation.

The Noninsured Crop Disaster Assistance Program (NAP): NAP provides financial assistance to eligible producers affected by natural disasters. This federally funded program covers non-insurable crop losses and planting prevented by disasters. The program was recently amended to eliminate the area loss requirement and now provides assistance for individual producer losses.  The program covers loss of forage produced for animal consumption.

Emergency Loan Program: The USDA has worked to expedite emergency drought declarations this year.  Emergency loans help producers recover from production and physical losses due to drought, flooding and other natural disasters. Emergency loan funds may be used to: restore or replace essential property; pay all or part of production costs associated with the disaster year; pay essential family living expenses; and refinance certain debts.

HayNet: USDA has developed this website for producers to list information concerning the need for hay or the availability of hay for donation.  http://www.fsa.usda.gov/haynet/

Emergency Haying and Grazing of Conservation Reserve Program Acreage may be made available in areas suffering from weather-related natural disaster. If approved, harvesting of hay and/or livestock grazing is allowed on cropland that has been removed from production of annual program crops, such as wheat and feed grains, and devoted to a long-term resource-conserving cover. To protect wildlife during the primary nesting season, other limits also may be imposed.

For detailed information on these and other programs, producers should contact or visit their USDA Service Center, or Farm Service Agency County Office or visit http://www.fsa.usda.gov/. Producers may also contact the Natural Resources Conservation Service offices or visit http://www.nrcs.usda.gov/programs/.