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Analysis: Details of 2009-Crop Disaster Aid Set by USDA

September 17, 2010
By: Roger Bernard, Farm Journal Policy and Washington Editor
 
 

Those waiting for disaster assistance promised by the Obama administration for 2009 crop losses at least have a definitive answer from USDA, but it falls far short of what has been talked about in recent weeks and months.

USDA will deliver up to $550 million in aid to producers of 2009 crops of rice, upland cotton, sweet potatoes and soybeans -- no other crops are cited in documents from USDA that were released this week by Senate Ag Committee Chair Blanche Lincoln (D-Ark.). And that dollar amount is not what Lincoln had sought -- her original request was for around $2 billion and her last legislative attempt was for a $1.5 billion package.

The aid will be made to those growers who are in a county designated a primary disaster county due to high precipitation or moisture conditions in 2009. That translates in to 1,000 counties in 26 states.

While welcoming the aid, Lincoln said she was disappointed that the plan didn't cover more. I am disappointed the Administration did not develop a program that was closer to my original legislation which provided adequate assistance to all crops, from all regions of the country," Lincoln said. "Despite these hurdles, I was able to use my influence as Chairman to provide relief to farm families. In Arkansas, this program will ensure nearly 90% of all acres are eligible to receive assistance if they experienced a weather-related disaster. It will also help hundreds of poultry growers and fish farmers who are suffering due to circumstances beyond their control."

According to USDA, producers who certify to at least a 5% loss in 2009 will receive a payment based on a pre-determined payment rate multiplied by the actual planted (or prevented planted) acres that they have on file with FSA. Further, FSA will work up regulations to implement this program that applies average adjusted gross income eligibility requirements and payment limitations consistent with other disaster programs.

Payment rates per acre for eligible producers:

  • Long Grain Rice:$31.93
  • Medium/Short Grain Rice $52.46
  • Soybeans $15.62
  • Sweet Potatoes $155.41
  • Upland Cotton $17.70
Besides the crop aid, the program will also provide up to $60 million in the form of a grant to states where poultry producers lost a contract due to the bankruptcy of an integrator in December of 2008. Poultry producers must have lost their contract with the bankrupt integrator between May 1, 2008, and July 1, 2010, and been unable to enter into a subsequent contract. A grant will be made to all States with impacted producers to help cover the needs of these producers.

In addition, the package will included up to $20 million (also in the form of a grant to states) for farm-raised aquaculture producers who experienced high feed costs in 2009. That aid will be allocated to states on a pro-rata basis, based on total benefits earned by all eligible 2008 aquaculture producers in each state under the 2008 AGP, authorized by the American Recovery and Reinvestment Act of 2009.

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RELATED TOPICS: Soybeans, Cotton, Rice, Potatoes, USDA

 
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COMMENTS (3 Comments)

Faust100F
Why soybeans and not corn, or Sunflowers, etc. This is just another USDA Comic Book, $15 an acre for a soybean producer is a joke, and nothing for a corn producer is indicative of the dead heads we have on the government dole in Washington. It is time for farmers to get out of the program not take their money and tell them to shove it. They do not pay enough for producer info in the payments they hand out.
12:38 PM Sep 19th
 
Steve - New Hampton, IA
What about the corn growers who had excessive moisture and poor test weights? And the ones who were still harvesting corn up until planting 2010 crops?
9:57 PM Sep 18th
 
gary creech - zebulon, NC
What about hog producers that lost their contracts ? I have been trying to keep my family farm out of forclosure for 18 months now and could certainly use some help. Are chickens and fish more important to our economy than pigs?
2:27 PM Sep 17th
 



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