Designates an Additional 218 Counties as Primary Natural Disaster Areas
WASHINGTON — On August 1, Agriculture Secretary
Tom Vilsack has 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.
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.
"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 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 has announced 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.
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.
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.