POLICY RESPONSES TO AGRICULTURAL DISASTERS

1
POLICY RESPONSES TO AGRICULTURAL DISASTERS

• C.W. Bill Herndon
• Mississippi State University
• FAMPS Marketing Policy Conference
• Bio-terrorism and Natural Disasters Market and
  Policy Responses
• Washington, D.C.
• March 22-23, 2007

2
Acknowledgement

• Borrowed much of the information used in this
  presentation from Jim Novak, Professor
  Extension Economist at Auburn University
• Dr. Novak presented these materials at a SAEA
  Symposium in 2006
• This disaster policy response review was
  precipitated by 2005 hurricane season (Katrina,
  Rita, Wilma, etc)

3
Disaster Declarations

• BASICALLY EVERY YEAR
• Source http//www.fema.gov/library/drcys.shtm 
• Federally Declared Disasters by Calendar Year
• Annual Major Disaster Declaration Totals
• Major Disaster Declaration State Totals
• Federally Declared Disasters by Calendar Year
  2007 2006 2005 2004 2003 2002 2001 2000 1999 1998
  1997 1996 1995 1994 1993 1992 1991 1990 1989 1988
  1987 1986 1985 1984 1983 1982 1981 1980 1979 1978
  1977 1976 1975 1974 1973 1972 1971 1970 1969 1968
  1967 1966 1965 1964 1963 1962 1961 1960 1959 1958
  1957 1956 1955 1954 1953

4
Disaster Declarations

• State Disaster Categories
• Major Disaster Declarations
• Emergency Declarations
• Fire Management Assistance Declarations

5
State Disaster Declarations

•  Rank State Total number of disaster
  declared
• 1 Texas 78
• 2 California 72
• 3 Florida 59
• 4 Louisiana 53
• 5 New York 53
• 6 Oklahoma 49
• 7 Alabama 46
• 8 Kentucky 44
• 9 Mississippi/Ohio/Penn 42
• 13 Arkansas/Illinois 41
• 16 Virginia 39
• 18 Tennessee 38
• 23 North Carolina 35
• 26 Georgia 31
• 37 Puerto Rico 20
• 46 South Carolina 15
• 49 US Virgin Islands 13

6
QUESTIONS Whats an Ag. disaster? Who
decides what is an ag. disaster? What policy
responses have been made to ag.
disasters? Whats the likely government
response to future agricultural disasters?
7
AGRICULTURAL DISASTER? FOR BOTH THE COW AND CAR
YES!!
8
What is an Ag. Disaster?

• Damages and lossesmust be due to a
  natural disaster and
• Minimum 30-percent production loss of at least
  one crop in the county must have occurred.
• sourcewww.fsa.usda.gov/pas/publications/facts/htm
  l/EMProcess04.htm
• FSA/USDA Electronic Fact Sheet,January 2004
• Emergency Disaster Designation and Declaration
  ProcessSecretary of Agriculture Declaration

9
What is an Ag. disaster?

• Four types of major disaster designations
• Presidential major disaster declaration,
• USDA Secretarial disaster designation,
• Farm Service Agency (FSA) Administrators
  Physical Loss Notification, and,
• Quarantine designation.
• sourcewww.fsa.usda.gov/pas/publications/facts/htm
  l/EMProcess04.htm
• FSA/USDA Electronic Fact Sheet, January 2004
• Emergency Disaster Designation and Declaration
  Process

10
What is an Ag. disaster?

• http//www.fsa.usda.gov/pas/publications/facts/htm
  l/EMProcess04.htm
• FSA/USDA Electronic Fact Sheet, January 2004
  Emergency Disaster Designation and Declaration
  Process
• The first three types of disaster declarations
  authorized under 7 CFR 1945-A.
• The fourth type of disaster declaration
  authorized by Section 5201 of the Agricultural
  Assistance Act of 2003, P.L. 108-07

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Who Decides?

• Presidential Major Disaster Declarations,
• Requested by a governor to the President,
• Administered through FEMA.
• FEMA immediately notifies Agencies of counties
  named.
• Secretarial Ag Disaster Designations,
• Requested by a governor or the governors
  authorized representative ..., or by an Indian
  Tribal Council leader
• Designation is the most widely used and its
  process is the most complicated of the four.
• http//www.fsa.usda.gov/pas/publications/facts/htm
  l/EMProcess04.htm
• FSA/USDA Electronic Fact Sheet, January 2004
  Emergency Disaster Designation and Declaration
  Process

12
Who Decides?

• FSA Administrators Physical Loss Notification
  (APLN)
• For physical losses only, such as a building
  destroyed by a tornado.
• APLN is requested of FSAs Administrator by an
  FSA State Executive Director (SED).
• Quarantine designation,
• Requested of the FSA Deputy Administrator for
  Farm Programs by an FSA SED.
• A quarantine designation authorizes EM loans for
  production and physical losses resulting from a
  quarantine.
• http//www.fsa.usda.gov/pas/publications/facts/htm
  l/EMProcess04.htm
• FSA/USDA Electronic Fact Sheet, January 2004
  Emergency Disaster Designation and Declaration
  Process

13
What is an Ag. disaster?

• PRESIDENTIAL DISASTER DECLARATION
• County declared by the President as a disaster
  area or designated by the Secretary of
  Agriculture as a disaster area or quarantine
  area.
• Farms/Ranches that have suffered at least a
  30-percent loss in crop production or a physical
  loss to livestock, livestock products, real
  estate, or chattel property.
• Source disaster.fsa.usda.gov

14
What is an Ag. disaster?

• PRESIDENTIAL DISASTER DESIGNATION
• In 1988, the Robert T. Stafford Disaster Relief
  and Emergency Assistance Act, 42 U.S.C.
  5121-5206, was enacted to support State and local
  governments and their citizens when disasters
  overwhelm them. This law, as amended, establishes
  a process for requesting and obtaining a
  Presidential disaster declaration, defines the
  type and scope of assistance available from the
  Federal government, and sets the conditions for
  obtaining that assistance. The Federal Emergency
  Management Agency (FEMA), now part of the
  Emergency Preparedness and Response Directorate
  of the Department of Homeland Security, is tasked
  with coordinating the response.
• source www.fema.gov/rrr/dec_guid.shtm

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What is an Ag. disaster?

• PRESIDENTIAL DISASTER DESIGNATION
• In 1988, the Robert T. Stafford Disaster Relief
  and Emergency Assistance Act, 42 U.S.C.
  5121-5206
• Requires "All requests for a declaration by the
  President that a major disaster exists shall be
  made by the Governor of the affected State."
• Governor's request through regional FEMA/EPR.
• State and Federal officials conduct preliminary
  damage assessment (PDA) to estimate the extent
  of the disaster and its impact on individuals
  and public facilities.
• Governor's request shows the disaster is of such
  severity and magnitude that effective response
  is beyond the capabilities of State and local
  govts and that Federal assistance is necessary.
• source www.fema.gov/rrr/dec_guid.shtm

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What is an Ag. disaster?

• PRESIDENTIAL DISASTER DESIGNATION Governors
  Request
• Governor must take appropriate action under State
  law and direct execution of the State's emergency
  plan.
• Furnishes information on the nature and amount of
  State and local resources that have been or will
  be committed to alleviating the results of the
  disaster,
• Provides an estimate of the amount and severity
  of damage and impact on the private and public
  sector,
• Provides an estimate of the type and amount of
  assistance needed under the Stafford Act.
• source www.fema.gov/rrr/dec_guid.shtm

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What is an Ag. disaster?
PRESIDENTIAL DISASTER DESIGNATION Governors
Request Based on the Governor's request, the
President may declare that a major disaster or
emergency exists, activating Federal programs to
assist in the response and recovery
effort. source www.fema.gov/rrr/dec_guid.shtm
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What is an Ag. disaster?

• PRESIDENTIAL DISASTER DESIGNATION
• Individual Assistance
• - aid to individuals and households
• Public Assistance
• - aid to public (and certain private non-profit)
  entities for certain emergency services and the
  repair or replacement of disaster-damaged public
  facilities
• Hazard Mitigation Assistance
• - funding for measures designed to reduce future
  losses to public and private property.
• source www.fema.gov/rrr/dec_guid.shtm

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Who Decides?

• SECRETARY OF AGRICULTURE DISASTER DECLARATION
• Local entity notifies the governors office of
  disaster and losses.
• The governor makes a request in writing to the
  Secretary of Agriculture within three months of
  the ending date of the disaster.
• FSA county offices assemble required agricultural
  loss information for the Damage Assessment Report
  (DAR).
• FSAs NHQ notifies the SED (State Executive
  Director). The SED instructs county offices named
  in the request to complete the DAR, conduct
  County Emergency Board (CEB) meetings, and
  approve or disapprove the DAR.
• http//www.fsa.usda.gov/pas/publications/facts/htm
  l/EMProcess04.htm
• FSA/USDA Electronic Fact Sheet, January 2004
  Emergency Disaster Designation and Declaration
  Process

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Who Decides?

• SECRETARY OF AGRICULTURE DISASTER DECLARATION.
• 5. DAR submitted to State Emergency Board
  (SEB) for review processing.
• 6. SED prepares comments and recommendations.
  
• SEB reviews the DAR.
• Upon approval, the DAR is submitted to FSAs NHQ.
• FSAs Emergency Preparedness and Programs Branch
  (EPPB) processes the loss information on the DAR,
  determines eligibility, and prepares a package,
  including the letter of approval or disapproval,
  to be signed by the Secretary.
• Office of the Under Secretary for Farm and
  Foreign Agricultural Services reviews the package
  and forwards it to the Secretary.
• The Secretary approves or declines the request in
  writing.
• http//www.fsa.usda.gov/pas/publications/facts/htm
  l/EMProcess04.htm
• FSA/USDA Electronic Fact Sheet, January 2004
  Emergency Disaster Designation and Declaration
  Process

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Who Decides?

• SECRETARY OF AGRICULTURE DISASTER DECLARATION
• Info Required for Processing Secretarial Disaster
  Requests
• Previous 5-year avg production history for the
  crops farms listed in Damage Assessment Report
  (DAR)
• Farm price average for previous 3 years for the
  crops listed in the DAR
• Dates crops suffered damage, and conditions
  causing production losses
• DAR signed by the County Emergency Board (CEB)
  and State Emergency Board (SEB) chairpersons
• CEB and SEB meeting minutes
• State Executive Director (SED) comments and
  recommendations.
• http//www.fsa.usda.gov/pas/publications/facts/htm
  l/EMProcess04.htm
• FSA/USDA Electronic Fact Sheet, January 2004
  Emergency Disaster Designation and Declaration
  Process

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Who Decides?

• SECRETARY OF AGRICULTURE DISASTER DECLARATION.
• Takes 2-3 weeks for approval or denial in
  writing.
• Loss occurs early in the spring, FSA may wait
  until completion of fall harvest before
  completing DAR.
• Natural disasters include blizzard, cyclone,
  earthquake, hurricane, tornado, severe hail,
  excessive rain, heavy snow, ice and/or high
  wind, an electrical storm, several weather
  patterns sustained over a period of time,
  including low or high temperatures, and related
  pests, epidemics, or fires.
• The normal years dollar value is determined by
  establishing a normal year yield and price.
  Normal year yield is defined as the average
  yield for the 5 years immediately preceding the
  disaster year for each crop.

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Who Decides?

• Circumstances Affecting Secretarial Disaster
  Designations
• Disaster designations flexible and accommodates
  circumstances such as
• Continuing adverse weather
• - continuing losses or damages are occurring, the
  Administrator can extend the incidence period
  and termination date to, but not in excess of,
  60 days.
• Insufficient data
• - defers determination until sufficient info
  received.
• http//www.fsa.usda.gov/pas/publications/facts/htm
  l/EMProcess04.htm
• FSA/USDA Electronic Fact Sheet, January 2004
  Emergency Disaster Designation and Declaration
  Process

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What is an Ag. disaster?

• SEEMS TO BE A COUPLE OF DIFFERENT CATEGORIES OF
  DISASTER
• Disaster
• Situation of Distress
• Seems to pertain to food/feeding emergencyFood
  Nutrition Service

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Disaster Means

• b) any other occasion or instance in which the
  President determines Federal assistance is
  needed.

• a) any natural catastrophe, or regardless of
  cause, any fire, flood, or explosion, in any part
  of the U.S., which the President determines
  causes damage of sufficient severity and
  magnitude to warrant major disaster assistance
  or

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Situations of Distress Means

• b) any other situation not declared by the
  President to be a disaster, but which, in the
  judgment of Food and Nutrition Service, warrants
  the use of USDA commodities for congregate
  feeding or household distribution.

• a) a natural catastrophe not declared by the
  President to be a disaster, but which, in the
  judgment of the DA, warrants the use of USDA
  commodities for congregate feeding and

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Other Definitions

• Disaster organizations mean
• Organizations authorized by appropriate Federal
  or State officials to assist disaster victims.
• Disaster victims mean
• Persons who, because of acts of God or manmade
  disasters, are in need of food assistance,
  whether or not they are victims of a major
  disaster or emergency.

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FOOD AND NUTRITION SERVICE SEEMS TO BE DIFFERENT
CATEGORIES http//www.fns.usda.gov/disasters/disas
ter.htm

• Disasters Situations of Distress
• Requires Pres. Declaration Does NOT require
  Pres. Declaration
• Guaranteed commodity Commodities replaced
• Replacement if funds are available
• State DA determines Natural event, State Dept.
• duration of food service Ag. determines
  duration food service up to 30
  days. Over 30 days, or if not natural
  event FNSHQ must approve.

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Programs Available?

• Programs Available
• Secretarial designations and Presidential
  declarations as an eligibility requirement
  trigger, for primary counties only, include
• Livestock Compensation Program
• Livestock Assistance Program
• Livestock Indemnity program
• Flood Compensation Program.
• Disaster Debt Set-Aside Program
• Section 331A of the consolidated Farm and
  Rural Development Act, FSA is authorized to
  consider setting aside certain payments owed
  by FSA borrowers to allow the operation to
  continue.
• http//www.fsa.usda.gov/pas/publications/facts/htm
  l/EMProcess04.htm
• FSA/USDA Electronic Fact Sheet, January 2004
  Emergency Disaster Designation and Declaration
  Process

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Programs Available?
Programs Available Emergency Loan Eligibility for
All Four Types of Emergency Designations When a
county is designated as a primary disaster area,
eligible producers in contiguous counties are
also eligible for EM loans. Loan Limit
Eligible producers may borrow up to 100 percent
of actual production or physical losses, not to
exceed a total amount of 500,000. EM loans are
further limited to a maximum, cumulative
principal of 500,000 at any time. http//www.fsa
.usda.gov/pas/publications/facts/html/EMProcess04.
htm FSA/USDA Electronic Fact Sheet, January 2004
Emergency Disaster Designation and Declaration
Process
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Who Decides?

• Programs Available
• Emergency Loan Eligibility for All Four Types
  of Emergency Designations
• EM Loan Applicants
• Must meet all standard loan eligibility
  requirements, have 8 months from date of the
  designation approval to apply for the loans to
  help cover their actual losses must meet the
  agency definition of an established farmer, must
  be citizens or permanent residents of the United
  States, and have suffered at least a 30-percent
  loss in crop production and/or sustained a
  physical loss to livestock, livestock products,
  real estate, or chattel property must have an
  acceptable credit history, yet be unable to
  receive credit from commercial sources must have
  collateral to secure the loan and ability to
  repay the loan.
• EM Loan Funding
• The EM loan program is subject to an annual
  appropriation of discretionary funding.
• http//www.fsa.usda.gov/pas/publications/facts/htm
  l/EMProcess04.htm
• FSA/USDA Electronic Fact Sheet, January 2004
  Emergency Disaster Designation and Declaration
  Process

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Policy Response to Ag. Disasters

• FY1989 through FY2005 (to date) 31
  appropriations, authorizations, or farm disaster
  acts USDA program cost approximately 53.2
  billion. Primarily market loss and crop disaster
  payments.
• Source Congressional Research Service Reports
  RL31095 - Emergency Funding for AgricultureA
  Brief History of Supplemental Appropriations,FY198
  9-FY2005, 23-Jun-2005 Ralph M. Chite 14 p.

33
Policy Response to Ag. Disasters

• In addition to Market Loss and Crop Disaster,
  11.8 billion for
• Livestock feed assistance programs,
• Farm conservation programs,
• Specialty crop assistance,
• Farm loans,
• Non-farm USDA programs such as overseas food aid,
  food and nutrition programs, and rural
  development and housing assistance.
• Source Congressional Research Service Reports
  RL31095 - Emergency Funding for AgricultureA
  Brief History of Supplemental Appropriations,FY198
  9-FY2005, 23-Jun-2005 Ralph M. Chite 14 p.

34
Policy Response to Ag. Disasters

• virtually all of the supplemental spending has
  been provided under an emergency designation from
  Congress and the Administration, meaning that the
  new spending did not have to be offset with
  comparable reductions in other programs...
• Source Congressional Research Service Reports
  RL31095 - Emergency Funding for AgricultureA
  Brief History of Supplemental Appropriations,FY198
  9-FY2005, 23-Jun-2005 Ralph M. Chite 14 p.

35
Policy Response to Ag. Disasters

• Total annual funding additions in the 31 acts
  providing economic and farm disaster assistance
  through USDA programs
• FY Disaster Assistance
• 2000 14.8 Billion
• 2001 11.3 Billion
• 2002 .6 Billion
• 2003 3.6 Billion
• 2004 .2 Billion
• 2005 3.8 Billion (to date)
• Source Congressional Research Service Reports
  RL31095 - Emergency Funding for Agriculture A
  Brief History of Supplemental Appropriations,FY198
  9-FY2005, 23-Jun-2005 Ralph M. Chite 14 p.

36

• According to CRS Summary of Supplemental Approps
  for USDA Programs 89-2005
• FY Billion
• 1989 3.3900
• 1990 1.4800
• 1991 0.0000
• 1992 0.9950
• 1993 1.9500
• 1994 3.0800
• 1995 0.6000
• 1996 0.1290
• 1997 0.5130
• 1998 0.1600
• 1999 0.6620
• 2000 14.7800
• 2001 11.3000
• 2002 0.5790
• 2003 3.5800
• 2004 0.2347
• 2005 3.8440

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Policy Response to Ag. Disasters

•  AID FOR AGRICULTURAL PRODUCERS AFFECTED BY
  HURRICANES OF 2005 source www.usda.gov
• 1/26/2006, 2.8 billion in USDA aid to victims of
  2005 hurricane season.
• 1.2 billion to agricultural producers in
  Alabama, Florida, Louisiana, Mississippi, North
  Carolina, and Texas.
• Disaster payments to farmers, ranchers and others
  through eight separate programs.
• Funding (1) Sec 32 of the Act of August 24, 1935
  and (2) DOD, Emergency Supplemental
  Appropriations to Address Hurricanes in the Gulf
  of Mexico, Pandemic Influenza Act, 2006

38
Policy Response to Ag. Disasters

• Section 32 of the Act of August 24, 1935
• Source www.websters-online-dictionary.org
• Section 32 of Agricultural Adjustment Act
  Amendment of 1935 was enacted to widen market
  outlets for surplus agricultural commodities as
  one means of strengthening farm prices.
• Financed by a permanent appropriation equal to
  30 of the import duties collected on all items
  entering the United States under the customs
  laws, plus any unused balances up to 300
  million.
• Most funds are annually transferred by
  appropriators to pay for child nutrition
  programs, although a portion of money is reserved
  to buy perishable commodities (mainly produce,
  meat, and poultry products) that are in surplus.
• Used to finance Cottonseed Oil Assistance Program
  and Sunflower Oil Assistance Program export
  subsidy programs, which were effectively
  terminated by the FAIR Act of 1996.

39
2006 Policy Response

•  
• Section 32 of the Act of August 24, 1935
• Section 32 of Agricultural Adjustment Act
  Amendment of 1935 was enacted to widen market
  outlets for surplus agricultural commodities as
  one means of strengthening farm prices.
• Source www.websters-online-dictionary.org

40
2006 Policy Response

•  Programs Created with Section 32 Funds
• USDA is providing 250 million for crop disaster,
  livestock, tree, and aquaculture assistance from
  Section 32 funds. These funds will be distributed
  by way of five new programs
• Hurricane Indemnity Program (HIP)
• Tree Indemnity Program (TIP)
• Feed Indemnity Program (FIP)
• Livestock Indemnity Program (LIP) and
• Aquaculture Grants.
• source www.usda.gov

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2006 Policy Response

• Hurricane Indemnity Program (HIP)
• Payments to farmers who received crop insurance
  or NAP.
• Payment 30 of crop insurance indemnity or NAP
  payment, capped at 95 of expected crop returns.
• Tree Indemnity Program (TIP)
• Flat payments per acre for the re-planting and
  rehabilitation (such as pruning or staking) of
  perennial orchards, vines, and bushes that
  produce an annual crop, damaged as a result of
  the hurricanes.
• Loss levels established by tiers of damage.
  USDA anticipates four tiers
• 90 percent or greater loss,
• Other three tiers covering the remainder of the
  spectrum.
• Producers certify to the tier which corresponds
  to their level of loss. Payments will not be made
  on a reimbursable basis. Timber losses are not
  included.

42
2006 Policy Response

•  Feed Indemnity Program (FIP)
• Payments to eligible owners and cash lessees of
  certain types of forage based livestock for feed
  losses. Payment rate will be a set amount per
  type of livestock. Producers self-certify feed
  losses.
• Livestock Indemnity Program (LIP)
• Payments to producers whose livestock died as a
  direct result of the hurricanes.
• Based on 75 of average sales price for each
  category of livestock.
• Payments will be included for contract growers
  of livestock, such as poultry, who lost
  livestock.
• Aquaculture Grants
• Block grants to states adversely affected by the
  hurricanes in 2005 for aquaculture losses.
  Aquaculture producers not covered by other
  disaster programs will be eligible for these
  funds.

43
2006 Policy Response

•  
• 903.9 million funding provided by The Department
  of Defense, Emergency Supplemental
  Appropriations to Address Hurricanes in the Gulf
  of Mexico, and Pandemic Influenza Act, 2006.
• 199.8 million for the Emergency Conservation
  Program (ECP)
• 404.1 million for Emergency Forestry CRP and
• 300 million for the Emergency Watershed Program
  (EWP).
• thomas.loc.gov

44
2006 Policy Response

• Emergency Conservation Program (ECP)
• Emergency funding and technical assistance for
  farmers and ranchers to rehabilitate farmland
  damaged by natural disasters and for carrying out
  emergency water conservation measures in periods
  of severe drought.
• Expanded the authority for ECP to include
  payments to nursery, oyster, and poultry
  producers to rehabilitate public and private
  oyster reefs clean up structures such as barns
  and poultry houses provide water to livestock
  in the case of nursery producers, remove debris
  such as nursery structures, shade-houses, and
  above ground irrigation facilities in the case
  of oyster producers, refurbishing oyster beds
  and in the case of poultry producers, remove
  poultry house debris, including carcasses.
• Increased ECP cost-share assistance from 75 to
  90.

45
2006 Policy Response

• Emergency Conservation Program (ECP)
• 20 million to poultry growers who suffered
  uninsured losses to poultry houses.
• Limited to 50 percent of the total costs
  associated with the restoration of poultry house
  - or 50,000 for each poultry house.
• Total assistance provided under ECP and any
  indemnities for losses to poultry house paid to a
  poultry grower (insurance payments), cannot
  exceed 90 of total costs associated with the
  reconstruction or repair of a house.
• On private nonindustrial forest, landowners must
  have suffered a loss of at least 35 of forest
  acres on commercial forest land.
• Payments to private nonindustrial forest
  landowners limited to 75 percent of the cost of
  reforestation, rehabilitation, and related
  measures, not to exceed 150 per acre.

46
2006 Policy Response

• Emergency Forestry Conservation Reserve Program
  (CRP)
• Administered by FSA. 2006 Defense Approps Act
  404.1 million for a CRP pilot project for
  merchantable timber losses on private
  non-industrial forests.
• Owners of land must have experienced at least a
  35 loss of merchantable timber.
• 10-annual payments or 1-lump sum payment.

47
2006 Policy Response

• Emergency Watershed Protection Program (EWP)
• Administered by NRCS. 2006 Defense
  Appropriations Act - 300 million for EWP for
  2005 hurricane damage.
• Cost share for cleaning up structures on private
  land and to reimburse private non-industrial
  forest landowners for costs associated with
  downed timber removal at a rate not to exceed
  150 per acre.
• Financial and technical assistance to remove and
  dispose of debris and animal carcasses that could
  adversely affect health and safety on non-Federal
  land in a hurricane-affected county.
• Emergency funding and technical assistance to
  help landowners and communities respond to
  emergencies created by natural disasters,
  including clearing debris from clogged waterways,
  restoring vegetation, stabilizing river banks,
  repairing levees and structures reseeding
  damaged areas and purchasing floodplain
  easements.

48
2006 Policy Response

• Emergency Watershed Protection Program (EWP)
• All projects undertaken, with the exception of
  floodplain easements, must be sponsored by a
  legal subdivision of the State and could include
  a city, county, conservation district or Native
  American tribe. Public and private landowners are
  eligible for assistance but must be represented
  by a project sponsor.
• NRCS provides up to 75 of funds needed to
  restore the natural function of a watershed and
  up to 90 in limited resource areas. The
  community or local sponsor of the work pays the
  remaining cost-share, which can be provided by
  cash or in-kind services.
• Sponsors are responsible for providing land
  rights to do repair work and securing the
  necessary permits. Sponsors are also responsible
  for furnishing the local cost share and for
  accomplishing the installation of work.

49
Agencies Collaborating on Ag.

• USDA
• FSA
• Disaster Assistance (DA)
• Emergency Conservation Program (ECP)
• Noninsured Crop Disaster Assistance Program (NAP)
• Emergency Loan Assistance (EM)
• Emergency Haying and Grazing Assistance
• Rural Development Disaster Assistance for
  Housing and Community Programs.
• Rural Development Business and Emergency
  Community Water Assistance.

50
Agencies Collaborating on Ag.

• USDA
• FNS
• Nutrition Service and Food Stamp Program
• Food Distribution Program (FDP)
• Food Assistance in Disaster Situations
• The Emergency Food Assistance Program (TEFAP)
• Commodity Food Network
• NRCS
• Emergency Watershed Protection (EWP)

51
Food and Nutrition Service (FNS)

• Emergency Feeding Programs
• Food Stamps
• Etc.,

52
Food and Nutrition Service - Food Program Oper.
Costs

• USDA reimburses state costs to transport
  commodities between states.
• State must absorb transport costs for commodities
  within its borders.
• If further processed items are used, USDA will
  reimburse ONLY the value of the raw commodity in
  the item.

53
Disaster Declarations Its not all USDA

• SBA DISASTER LOANS AVAILABLE FOLLOWING
• SEC. OF AG. DISASTER DESIGNATION
• NIAGARA FALLS, NY The U.S. Small Business
  Administration (SBA)federal disaster loans are
  available to small, non-farm, agriculture-dependen
  t businesses
• SBAs Economic Injury Disaster Loan (EIDL)
  program is available to small agriculture-dependen
  t businesses and small agricultural cooperatives
  that suffered economic injury as a direct result
  of the severe weathers effect on agricultural
  producers.
• Eligible small businesses may qualify for loans
  up to 1.5 million.

54
Disaster DeclarationsIts not all commodities

• SBA DISASTER LOANS AVAILABLE FOLLOWING
• SEC OF AGRICULTURE DISASTER DESIGNATION
• SBAs Economic Injury Disaster Loan (EIDL)
  program example, a business that sells
  goods/services to agricultural producers may be
  unable to pay bills and/or meet expenses because
  of the reduced purchasing power of the farmers
  and ranchers.
• Eligible small businesses may qualify for loans
  up to 1.5 million. These loans are available at
  a 4 percent interest rate with loan terms up to
  thirty years. SBA determines eligibility for the
  program based on the size and type of business
  and its financial resources. Under this disaster
  declaration, SBA does not provide loans to
  agricultural producers, and cannot provide loans
  to non-agricultural dependent businesses.

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Agencies Collaborating on Ag.

• USDA
• HOMELAND SECURITY/FEMA
• USDC/SBA
• www.disasterhelp.gov lists other agencies.

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Future Policy Response to Disaster Assistance?

• Cover Disasters with Insurance?
• Disaster Assistance Just Encourages Risky
  Behavior?
• As a Nation Can We Afford Disaster Assistance?
• Is it Simply Pork in Disguise?

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Future Policy Response?

• Solution? Permanent authorization for Disaster
  Assistance? 109th Congress, 1st Session
• HR 1118 Introduced March 3, 2005
• S 1776 - Introduced September 27, 2005
• Both Bills To amend the Federal Crop Insurance
  Act to establish permanent authority for the
  Secretary of Agriculture to quickly provide
  disaster relief to agricultural producers that
  incur crop losses as a result of damaging weather
  or related condition in federally declared
  disaster areas, and for other purposes.

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Future Policy Response?

• Thoughts?
• Comments?