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Summary:
The U.S. Department of Agriculture (USDA) offers several permanently authorized programs to help farmers recover financially from a natural disaster, including federal crop insurance, the noninsured assistance program and emergency disaster loans. Since 1988, Congress regularly has made supplemental financial assistance available to farmers and ranchers, primarily in the form of crop disaster payments and emergency livestock assistance. A drought in portions of the Midwest and Hurricanes Katrina and Rita in the Gulf affected 2005 agricultural production in those regions. So far, Congress has provided nearly $1 billion in emergency agricultural assistance, primarily for the cleanup and rehabilitation of damaged farmland and watersheds in a supplemental appropriations act (P.L. 109-148). USDA also has transferred $250 million of existing funds for crop, livestock, tree, and aquaculture assistance, exclusively for 2005 hurricane victims. To date, Congress has not authorized any emergency crop or livestock payments for 2005 losses. However, the Senate-passed version of a pending FY2006 supplemental appropriations bill (H.R. 4939) contains an adopted committee amendment that would provide an estimated additional $3.9 billion in various forms of farm assistance, including payments for major crop and livestock losses caused by any 2005 disaster. The Administration has stated that it will veto the bill if conferees adopt the provision, or any other major spending initiatives above the Administration request. This report will be updated as conditions warrant.
