New Drought Assistance, Natutal Disaster Areas

Agriculture Secretary Vilsack Announces New Drought Assistance, Designates an Additional 218 Counties as Primary Natural Disaster Areas Nearly 4 Million Acres of Land Open to Haying and Grazing; Obama Administration-wide drought response continues On Aug. 1, 2012 Agriculture Secretary Tom Vilsack today announced two new pieces of disaster assistance for farmers and ranchers impacted by the nation's worsening drought. First, Vilsack is expanding emergency haying and grazing on approximately 3.8 million acres of conservation land to bring greater relief to livestock producers dealing with shortages of hay and pastureland. Second, the Secretary announced that crop insurance companies have agreed to provide a short grace period for farmers on insurance premiums in 2012. As a result, farming families now have an extra 30 days to make payments without incurring interest penalties on unpaid premiums. Earlier in the day, Vilsack signed disaster designations for an additional 218 counties in 12 states as primary natural disaster areas due to damage and losses caused by drought and excessive heat. Counties designated today are in the states of Arkansas, Georgia, Iowa, Illinois, Indiana, Kansas, Mississippi, Nebraska, Oklahoma, South Dakota, Tennessee, and Wyoming. More than half (50.3 percent) of all counties in the United States have been designated disaster areas by USDA in 2012, mainly due to drought. For additional information, and to see a list of the additional counties designated as disaster areas click “Read More”

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“President Obama and I will continue to take swift action to get help to America’s farmers and ranchers through this difficult time,” said Vilsack. “The assistance announced today will help U.S. livestock producers dealing with climbing feed prices, critical shortages of hay and deteriorating pasturelands. Responding to my request, crop insurance companies indicated that producers can forgo interest penalties to help our nation’s farm families struggling with cash flow challenges. The Obama Administration intends to continue helping those who farm or ranch and live and work in rural America through this period of hardship.”

Emergency Haying and Grazing
In response to the expanding drought, Secretary Vilsack today announced that livestock producers and other participants in the Conservation Reserve Program (CRP) will now be able to hay and graze acres that have been ineligible in the past. Many of these additional acres have wetland-related characteristics and are likely to contain better quality hay and forage than on other CRP acres. There are approximately 3.8 million acres that will now be eligible for emergency haying and grazing, subject to certain conditions. Haying and grazing may only occur under strict compliance rules to help minimize impacts on these sensitive specialty practices. In addition, USDA will conduct follow-up monitoring and evaluation of these opened CRP areas to study the effects of the drought and USDA’s emergency haying and grazing actions. Producers should contact their local Farm Service Agency offices for additional information.

Federal Crop Insurance
Secretary Vilsack announced today that crop insurance companies have agreed to provide a short grace period for farmers on insurance premiums in 2012. To help producers who may have cash flow problems due to natural disasters, Secretary Vilsack sent a letter to crop insurance companies asking them to voluntarily defer the accrual of any interest on unpaid spring crop premiums by producers until November 1, 2012. In turn, to assist the crop insurance companies, USDA will not require crop insurance companies to pay uncollected producer premiums until one month later.

During the 2012 crop year, USDA has designated 1,584 unduplicated counties across 32 states as disaster areas—1,452 due to drought—making all qualified farm operators in the areas eligible for low-interest emergency loans. The U.S. Drought Monitor indicates that 66 percent of the nation’s hay acreage is in an area experiencing drought, while approximately 73 percent of the nation’s cattle acreage is in an area experiencing drought. During the week ending July 29, USDA’s National Agricultural Statistics Service reported that U.S. soybeans rated 37 percent very poor to poor, matching the lowest conditions observed during the drought of 1988. NASS also reported that 48 percent of the U.S. corn crop was rated very poor to poor, while 57 percent of the nation’s pastures and rangeland are rated very poor or poor condition.

Last week, President Obama met with Secretary Vilsack and members of his Cabinet to discuss additional steps the Administration could take to help farmers, ranchers and business owners manage and recover from the current drought. Later in the week, President Obama directed Secretary Vilsack to convene a meeting of the White House Rural Council to update members and stakeholders on the Administration response to the drought. Vilsack will update Rural Council members and stakeholders again next week on new steps taken by the Administration to combat the drought.

Under Secretary Vilsack’s leadership, USDA has announced a variety of steps to get assistance to producers impacted by the worsening drought, including:

Allowing additional acres under CRP to be used for emergency haying or grazing. The action allows lands that are not yet classified as “under severe drought” but that are “abnormally dry” to be used for haying and grazing.

Allowing producers to modify current Environmental Quality Incentives Program (EQIP) contracts to allow for grazing, livestock watering, and other conservation activities to address drought conditions.

Authorizing haying and grazing of Wetlands Reserve Program (WRP) easement areas in drought-affected areas where haying and grazing is consistent with conservation of wildlife habitat and wetlands. USDA has expedited its authorization process for this haying and grazing.

Encouraging crop insurance companies to provide a short grace period for farmers on unpaid insurance premiums, as some farming families can be expected to struggle to make ends meet at the close of the crop year.

Reducing the emergency loan interest rate from 3.75 percent to 2.25 percent.

Lowering the reduction in the annual rental payment to producers on CRP acres used for emergency haying or grazing from 25 percent to 10 percent in 2012.

Simplifying the Secretarial disaster designation process and reduced the time it takes to designate counties affected by disasters by 40 percent.

USDA agencies have been working for weeks with state and local officials, as well as individuals, businesses, farmers and ranchers, as they begin the process of helping to get people back on their feet. The U.S. Small Business Administration has also made 63 agency declarations in 33 states covering 1,675 counties, providing a pathway for those affected to apply for an Economic Injury Disaster Loan (EIDL). SBA’s EIDLs are available to small, non-farm businesses and small agricultural cooperatives that are economically affected by the drought in their community.

Also today, U.S. Department of Transportation Secretary Ray LaHood will convene a call with states to listen and discuss the ways in which U.S. DOT can work with Governors and State Departments of Transportation to help communities impacted by the drought. Secretary LaHood will be joined by both Anne Ferro, Administrator of the Federal Motor Carriers Safety Administration and Greg Nadeau, Deputy Administrator for the Federal Highways Administration.

The Obama Administration, with Agriculture Secretary Vilsack’s leadership, has worked tirelessly to strengthen rural America, maintain a strong farm safety net, and create opportunities for America’s farmers and ranchers. U.S. agriculture is currently experiencing one of its most productive periods in American history thanks to the productivity, resiliency, and resourcefulness of our producers. A strong farm safety net is important to sustain the success of American agriculture. USDA’s crop insurance program currently insures 264 million acres, 1.14 million policies, and $110 billion worth of liability on about 500,000 farms. In response to tighter financial markets, USDA has expanded the availability of farm credit, helping struggling farmers refinance loans. In the past 3 years, USDA provided 103,000 loans to family farmers totaling $14.6 billion. Over 50 percent of the loans went to beginning and socially disadvantaged farmers and ranchers.

Primary counties and corresponding states designated as disaster areas today:

Arkansas
Benton and Washington

Georgia

Bartow	Cherokee	Cobb
Haralson	Paulding	Polk

 

Illinois

Adams	Bond	Boone
Brown	Calhoun	Carroll
Cass	Champaign	Christian
Clark	Clay	Clinton
Coles	Cumberland	De Witt
Douglas	Edgar	Effingham
Fayette	Ford	Fulton
Greene	Hancock	Henderson
Iroquois	Jasper	Jefferson
Jersey	Jo Daviess	La Salle
Lee	Livingston	Logan
Macon	Macoupin	Madison
Marion	Marshall	Mason
McDonough	McLean	Menard
Monroe	Montgomery	Morgan
Moultrie	Ogle	Peoria
Perry	Piatt	Randolph
Rock Island	Sangamon	Schuyler
Scott	Shelby	St. Clair
Stephenson	Tazewell	Vermilion
Warren	Washington	Wayne
Whiteside	Winnebago	Woodford

 

Indiana
Jackson and Warren

Iowa

Appanoose	Benton	Black Hawk
Boone	Bremer	Buchanan
Butler	Cedar	Clayton
Clinton	Davis	Delaware
Des Moines	Dubuque	Fayette
Grundy	Hamilton	Hardin
Henry	Iowa	Jackson
Jasper	Jefferson	Johnson
Jones	Keokuk	Lee
Linn	Lucas	Mahaska
Marion	Marshall	Monroe
Muscatine	Polk	Poweshiek
Scott	Story	Tama
Van Buren	Wapello	Wayne

 

Kansas

Atchison	Brown
Doniphan	Jackson

 

Mississippi
Marshall

Nebraska

Antelope	Arthur	Banner
Blaine	Brown	Buffalo
Box Butte	Cedar	Chase
Cherry	Cheyenne	Dawes
Dawson	Deuel	Dixon
Franklin	Garden	Garfield
Gospen	Grant	Hall
Harlan	Holt	Hooker
Kearney	Keith	Keya Paha
Kimball	Knox	Lincoln
Logan	Loup	Madison
McPherson	Morrill	Perkins
Phelps	Pierce	Platte
Rock	Scotts Bluff	Sheridan
Sioux	Stanton	Thomas
Wayne	Wheeler

 

Oklahoma

Adair	Cherokee	Delaware
Haskell	Mayes	McIntosh
Muskogee	Okmulgee	Rogers
Sequoyah	Tulsa	Wagoner

 

South Dakota

Bennett	Bon Homme	Butte
Charles Mix	Clay	Custer
Davison	Douglas	Fall River
Gregory	Haakon	Hanson
Hutchinson	Jackson	Lawrence
Lincoln	McCook	Meade
Pennington	Shannon	Todd
Tripp	Turner	Union
Yankton

 

Tennessee

Fayette

Haywood

Lauderdale

 

Wyoming

Albany	Campbell	Converse
Crook	Goshen	Niobrara
Platte	Weston