2009 CROP DISASTER ASSISTANCE (S.2810) – FACT SHEET
Excessive rainfall throughout the Mid-South has significantly impacted this year’s crops.
Rainfall totals for September and October
|
Sept. ‘09 |
Sept. Avg. |
Oct. ‘09 |
Oct. Avg. |
Total Over/Under |
Memphis, TN |
8.59 |
3.31 |
10.56 |
3.31 |
12.53 |
Shreveport, LA |
2.58 |
3.21 |
20.35 |
4.45 |
15.27 |
Greenville, MS |
8.4 |
2.74 |
14.47 |
3.39 |
16.74 |
Jackson, MS |
4.33 |
3.23 |
7.39 |
1.5 |
6.99 |
Huntsville, AL |
5.96 |
4.29 |
8.17 |
3.54 |
6.30 |
Mississippi crop value losses as of October 26, 2009
Mississippi crop value losses as of October 26, 2009
Crop |
Crop Value on Sept. 20 (1,000s) |
Total value harvested (1,000s) |
Lost crop value (1,000s) |
Percent of value lost |
Soybeans |
$701,137 |
$394,114 |
$307,023 |
43.8% |
Corn |
$391,989 |
$379,594 |
$12,395 |
3.2% |
Cotton |
$149,221 |
$77,477 |
$71,744 |
48.1% |
Cotton Seed |
$41,774 |
$22,558 |
$19,216 |
46.0% |
Rice |
$239,107 |
$209,967 |
$29,140 |
12.2% |
Grain Sorghum |
$3,795 |
$2,207 |
$1,588 |
41.9% |
Peanuts |
$13,449 |
$8,742 |
$4,707 |
35.0% |
Sweet Potatoes |
$61,583 |
$22,432 |
$39,151 |
63.6% |
TOTAL |
$1,602,055 |
$1,117,090 |
$484,965 |
30.3% |
(Source: Mississippi State University 10/27/09)
2009 Crop Disaster Assistance – Fact Sheet
- Provides an additional Direct Payment to producers of crops eligible under the 2008 Farm Bill. The Direct Payment is the only method available to deliver timely assistance payments to impacted crop producers.
- Provides $650 million to assist specialty crop producers impacted by natural disasters. Funds would be made available via payments to states.
- Provides $150 million for the Livestock Compensation Program. This program will assist livestock producers who have suffered feed losses or incurred additional feed costs due to natural disasters.
- Provides $42 million to assist first handlers of cottonseed.
- Offsets costs associated with providing assistance by utilizing funds made available through the Troubled Asset Relief Program (TARP). As of September, total repayments from TARP investments exceed $70 billion.
CBO SCORE
Direct Payment |
$1,346 M |
Specialty Crops |
$650 M |
Livestock Compensation Program |
$150 M |
Cottonseed |
$42 M |
USDA Admin. |
$5 M |
TOTAL |
$2,193 M |
2009 Crop Disaster Assistance – Talking Points
Disaster assistance is needed following excessive rainfall which has resulted in significant losses for the 2009 crop year.
This legislation would provide assistance to row crops by distributing an additional Direct Payment using the payment rates enacted by the 2008 Farm Bill.
Eligible producers are required to be located in counties declared a disaster by the Secretary of Agriculture.
The Direct Payment mechanism, which has been used to provide assistance numerous times, is the only way for the Department of Agriculture to provide timely assistance.
This legislation would also provide assistance to fruit and vegetable growers through payments to states.
In Mississippi, providing timely assistance is critical for sweet potato growers who have experienced near total loss of this year’s crop.
Senator Cochran and the bill’s cosponsors are hopeful the Senate will consider this legislation soon so that assistance can be provided to farmers impacted by excessive rainfall.
2009 CROP DISASTER ASSISTANCE – Q & A
Why do crop producers need disaster assistance for crop year 2009?
The above average rainfall in Mississippi this fall has significantly impacted both the quality of this year’s crops and farmers’ ability to harvest. Certain areas of the Mississippi Delta have received in excess of 15 inches of rainfall above normal since September 1. In certain instances, the damage has reached levels that will likely result in crops being totally abandoned. At this point, agricultural economists estimate losses exceeding 30 percent of Mississippi’s total crop value.
The recently enacted 2008 Farm Bill included the SURE Program, which established a permanent disaster assistance program. Why is additional ad-hoc disaster assistance necessary following enactment of the 2008 Farm Bill?
While the SURE Program was designed to provide permanent disaster assistance, the Department of Agriculture has not yet completed sign-up for losses experienced for the 2008 crop year (as of November 18). Any payments under the SURE program for crop year 2009 will not be made available until about January 2011. For many farmers, this assistance will be too little, too late.
This legislation would provide an additional Direct Payment to producers of the major crops. Why not use the traditional method of disaster assistance which requires producers to sign-up with the Department of Agriculture and prove losses greater than 35 percent?
In the past, Congress has delivered assistance through the Direct Payment method and by using the 35 percent loss threshold. In this instance, the Direct Payment method is preferred based on the Department’s ability to deliver assistance. Under previous legislation, the Department has delivered Direct Payments within 14 days. This will make assistance available in a timely manner. Any assistance program requiring sign-up for individual producers would result in a 10 - 12 month implementation process.
Does this proposal provide assistance to crops not authorized to receive Direct Payments under the 2008 Farm Bill?
Yes, the proposal would provide $650 million for specialty crop producers, which includes fruits and vegetables. Assistance would be provided through grants to states, which would ensure timely delivery of much-needed assistance.
How does the Department of Agriculture determine individual county disaster declarations, which are approved or disapproved by the Secretary of Agriculture?
Secretarial Disaster Designation Process (summary):
- Damages and losses prompting disaster designations must be due to a natural disaster, and a minimum 30 percent production loss of at least one crop in the county must have occurred.
- The governor makes a request in writing to the Secretary of Agriculture within three months of the ending date of the disaster. The Farm Service Agency (FSA) county offices assemble required agriculture loss information for the damage assessment report.
- The damage assessment report is submitted to the State Emergency Board (SEB) for review and processing. Upon approval, the damage assessment report is submitted to FSA's national headquarters. The FSA’s national disaster assistance branch reviews the information and the declaration is approved or disapproved by the Secretary of Agriculture.
How many counties have been declared a disaster by the Secretary of Agriculture?
For Mississippi, 79 counties have been approved by the Secretary of Agriculture. The counties of Newton, Kemper, and Neshoba did not meet the loss threshold of 30 percent for at least one crop in the county. (This proposal excludes “contiguous” counties.)
If declared a disaster, what benefits would be available to producers under current authorities?
Secretarial disaster declarations immediately trigger the availability of low-interest Farm Service Agency emergency loans to eligible producers in all primary and contiguous counties.
What is the total cost of this disaster assistance proposal, and will this legislation be offset by reducing other government programs or be considered emergency spending (off-budget)?
The Congressional Budget Office (CBO) has scored this proposal at $2.193 billion. This legislation would be offset by utilizing the Troubled Asset Relief Program (TARP). As of September 2009, total repayments from TARP investments exceed $70 billion.
Counties Declared Disaster by the Secretary of Agriculture
As of November 17
- Only primary counties (yellow), which have proven losses equal to or exceeding 30 percent qualify for assistance.
