WASHINGTON (July 11, 2002) — National Farmers Union and 11 other farm groups sent a letter to Agriculture Secretary Ann M. Veneman today urging the administration’s support of and active engagement in securing emergency disaster assistance for farmers and ranchers.

The organizations commended Veneman for the U.S. Department of Agriculture’s timely announcements and actions to address natural disasters devastating crop and livestock production in 2001 and 2002. However, the farm organizations pointed out in the letter that there is still a desperate need for emergency programs to "reduce tragic weather- and disease-caused economic impacts experienced by farmers, ranchers and their communities throughout much of rural America."

National Farmers Union President Dave Frederickson said the 2002 farm bill was a leap forward for rural America in providing a safety net for producers, but that the new farm law fails to provide emergency disaster assistance.

"The new farm bill and its more stable level of funding is incapable of predicting and adequately dealing with natural disasters in advance," Frederickson said. "Emergency disaster assistance is needed desperately. Disasters affect not only farmers, but also entire rural communities and businesses that depend upon the agriculture economy."

Congress has enacted production loss disaster assistance each of the last four years, but not for producers who suffered losses in 2001. Last year, drought conditions devastated large portions of Maine, Vermont, California, Tennessee, South Carolina, Ohio, Indiana, New York, New Mexico, Wyoming, Virginia, Washington and Idaho, and the entire state of Montana.

In 2002, the drought has persisted in Montana, New Mexico and Wyoming and has spread to Colorado, Arizona, South Dakota, Nebraska and Texas. In addition, army worms have infested New York and Maine crops, and more than 2 million birds have been struck with avian flu in Virginia. Recently, Minnesota agriculture producers have been struggling to stay afloat due to flooding.

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www.nfu.org

July 11, 2002

The Honorable Ann M. Veneman
Secretary of Agriculture
United States Department of Agriculture
14^th Street and Independence Avenue, S.W.
Washington, D.C. 20510

Dear Madam Secretary:

The undersigned organizations write to commend you for the timely announcements and actions taken by USDA in addressing the weather- and disease-related disasters experienced by crop and livestock producers during the 2001 and 2002 agriculture production years. Unfortunately, the Department’s authority and resources available to mitigate the losses sustained by farmers, ranchers and rural businesses are sorely inadequate given the full scope of the weather and disease problems confronting American agriculture. For example, the most recent estimate for harvested winter wheat acres has been pegged at 29.8 million acres -- the lowest level since 1917. The chief reason for this is acreage abandonment due to drought.

While crop insurance, disaster loans, emergency grazing and other programs are helpful, the relief they provide pales in comparison to the devastation being experienced across a large part of rural America. We urge your active engagement and support in the development and implementation of emergency disaster assistance that provides a responsible level of assistance to those who have suffered or continue to suffer substantial weather- and disease-related losses.

The Food Security and Rural Investment Act of 2002 that received broad support among farm organizations, within the Congress, and by the Administration, provides increased economic resources, certainty, and stability across a wide range of agricultural, rural, and nutrition programs administered by USDA. For commodities, we believe it was the intent of Congress that the new farm bill reduce or eliminate the need for future ad hoc market loss-related assistance and, instead, provide a similar level of assistance in a more efficient and cost effective manner than the legislation it replaced. In fact, the projected outlays for commodity programs under the new law are projected to be significantly less than the annual average federal expenditures incurred since 1998. However, even the new farm bill and its more stable level of funding is incapable of predicting and adequately dealing with natural disasters in advance.

Certainly our experience with the crop insurance program, which has been modified and improved several times in recent years, is indicative of our inability to develop an adequate response to the vagaries of Mother Nature. The actuarial soundness requirements of crop insurance perversely affect those who suffer multiple years of loss. Even if full economic coverage policies were available under the program, the producer cost would be prohibitive.

From 1998 through the 2000 production seasons, Congress and the administration worked together to provide emergency production and quality loss assistance in addition to much-needed supplemental market loss programs. However, since 2001, weather- and disease-related production and quality losses have continued to mount for producers without any corresponding response from our government.

We urge the administration to work with Congress in funding an emergency program to reduce the tragic weather- and disease-caused economic impacts being experienced by farmers, ranchers and their communities throughout much of rural America.

Thank you for your attention to this issue. We look forward to working with you to address this serious situation in a timely and effective manner.

Sincerely,
National Farmers Union
American Sheep Industry Association
American Beekeeping Federation
Vidalia Onion Business Council
Southern Peanut Farmers Federation
National Association of Wheat Growers
American Corn Growers Association
National Barley Growers Association
U.S. Canola Association
R-CALF, USA
National Turkey Federation
National Grange