U.S. Senator Ken Salazar Member of the Agriculture, Energy and Veterans Affairs Committees 2300 15^th Street, Suite 450 Denver, CO 80202 | 702 Hart Senate Building, Washington, D.C. 20510
For Immediate Release September 13, 2005		CONTACT: Cody Wertz – Press Secretary 202-228-3630 Jen Clanahan – Deputy Press Secretary 303-455-7600
SEN. SALAZAR PUSHES BILL TO AID FARMERS & RANCHERS HURT BY HURRICANE KATRINA Washington – More than 100 family farmers and ranchers from across the nation joined Senator Ken Salazar and other members of Congress to announce the introduction of emergency legislation to assist agricultural producers hurt by Hurricane Katrina and other natural disasters this year. The legislation is sponsored by Senator Kent Conrad (ND) and Senator Salazar is an original co-sponsor of the legislation. “The Emergency Agriculture Disaster Assistance package will provide relief to farmers suffering from drought, economic losses due to natural disaster and rising fuel costs – all of which are plaguing Colorado’s farmers and ranchers today,” said Salazar. Salazar continued, “our farmers are suffering a triple blow: smaller harvests as a result of drought and other natural disaster lower prices as a result, specifically, of Hurricane Katrina; and higher costs for fuel and other inputs, again as a direct result of Hurricane Katrina.” Colorado Highlights: A farmer in Burlington, Colorado has told me that today he is paying $55,000 for fuel on his farm as compared to $15,000 at this time last year. These costs amount to 10% of his farm’s budget. This same farmer has said that it will cost about $100 per acre to fertilize his corn field versus $50 per acre last year. Another Colorado farmer has told me that four years ago he contracted to bring diesel to his farm at 65 cents per gallon. This year he will be paying $2.28 per gallon. This year it will cost an average Colorado corn farmer over $200 per acre to pay for the natural gas to run their irrigation pumps. At this time last year it cost $75 per acre. A summary of the legislation is included below. Emergency Agriculture Disaster Assistance Act of 2005 Summary of Key Components September 13, 2005 Production Loss Title – Elimination of the 95% cap on projected crop income and deductions for crop insurance and residual crop values. Modified production loss thresholds and payment rates. Changed from 35% production loss at a 65% payment rate to a 25% production loss and a 50% payment rate to help cover “shallow” losses. Clarified quality loss provisions to apply actual market discounts realized by producers. Quality loss payments at 50% of per unit loss times 75% of production. Extends Livestock Assistance Program/American Indian Livestock Feed Program. Provides livestock indemnity payments for livestock losses due to hurricanes, floods and anthrax. Provides additional funds Emergency Conservation Program ($100 million) and Emergency Watershed Protection Program ($250 million). Clarifies small business eligibility for existing assistance programs due to drought. Includes flooded lands assistance program. Emergency funding – no budget offsets Economic and Nutrition Program Assistance Title – Provides additional Section 32 funding for grants to states for food banks and other nutrition programs as well as the promotion of farm commodities and direct assistance to producers similar to 2000 program. A priority for specialty crops similar to the 2000 disaster bill is provided. Includes special grants to Gulf States and other states that accepted evacuees from hurricane Katrina. $500,000 per state, plus $66.7 million divided among states based on the 2000 share of specialty crop production. Additional $175 million in grants for Gulf States and those participating in the relief effort. Provides for extension of maturing commodity marketing loans for 6 months with storage payments. Provides a supplemental payment to program crop producers equal to 20% of their 2005 FSRIA direct payment. # # #