Powell, Johanns Announce $2.8 Billion in Hurricane Disaster Farm and Rural Assistance

Release Date: 01/26/06 00:00:00

For Immediate Release
Office of the Press Secretary
Contact: DJ Nordquist (202) 357-8174
Ed Loyd, USDA (202) 720-4623
January 26, 2006

Federal Coordinator for Gulf Coast Rebuilding Donald Powell and Agriculture Secretary Mike Johanns today announced $2.8 billion in aid to assist victims of the 2005 hurricane season. Agricultural producers will receive $1.2 billion through various programs and $1.6 billion will go towards restoring housing in rural communities.

“This funding for farmers, ranchers, and rural communities is good news for those in the Gulf Coast region who are working to recover from the hurricanes,” said Federal Coordinator for Gulf Coast Rebuilding Donald Powell. “To date, the federal government has committed $85 billion towards recovery from the storm and rebuilding for the future. Housing needs have been a priority, which is why today’s USDA money for single family home mortgages and home rehabilitation loans and grants, in addition to yesterday’s $11.5 billion in Community Development Block Grants through the Department of Housing and Urban Development, are critical to the long-term recovery and rebuilding of the region, bringing the overall housing total to over $40 billion.”

Johanns said, “These funds will help producers of many different crops and livestock to recover from damage to their agricultural operations. We’re also pleased to assist rural residents who lost their homes and to help rebuild rural communities through grants and loans to restore water, electrical and telecommunications systems.”

The Defense Appropriations Act of 2006 contains $1.6 billion in Rural Development program assistance for the hurricane victims. Nearly $1.5 billion is allocated to provide housing funds under the agency’s direct and guaranteed loan programs. Additionally, nearly $160 million will be dedicated to four areas; $54 million for housing repair loans and grants for very low-income applicants; $45 million in grants for hurricane damaged water and wastewater facilities; $50 million for telecommunications program assistance, and $8 million to restructure electrical loans in the hurricane-affected areas.

In addition to the funds for rural development and housing, $1.2 billion will go directly to farmers and producers. Johanns authorized the use of $250 million from Section 32 funds in October 2005 for crop disaster, livestock, tree and aquaculture assistance. These funds will be distributed by way of five new programs; the Tree Indemnity Program (TIP), the Hurricane Indemnity Program (HIP), the Livestock Indemnity Program (LIP), the Feed Indemnity Program (FIP), and an aquaculture grant program.

Producers in Alabama, Florida, Louisiana, Mississippi, North Carolina and Texas counties declared primary presidential or secretarial disaster areas in 2005 because of hurricanes are eligible to apply for assistance under the new programs.

Prior to today’s funding announcement, USDA has made available more than $1.7 billion to hurricane victims since Sept. 2005, brining USDA’s total hurricane aid to more than $4.5 billion. Previous assistance includes: $22 million in Emergency Watershed Protection funds; $31 million in Emergency Conservation Program funds; $152 million in Emergency Loan funding; $239 million in Rural Development funding; and $1.3 billion in Food and Nutrition funding.

USDA also made the following programs available to farmers and ranchers adversely affected by the 2005 hurricanes: the Emergency Conservation Program, Emergency Loan Program, Federal Crop Insurance and the Noninsured Crop Disaster Assistance Program.

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This page was last modified on 01/26/06 00:00:00