Florida Farm Bureau Federation
News Release
PO Box 147030
Gainesville, FL 32614-7030


FOR IMMEDIATE RELEASE

September 24, 2004

CONTACT:
Rod Hemphill
352.374.1516
RHemphilll@sfbcic.com
Ray Hodger
352.378.8100, ext. 1124
RHodger@sfbcic.com

Veneman Announces Agricultural Disaster Relief Package for Hurricane Victims

(BARTOW, Fla.) -- Producers of citrus, fruits, vegetables and nursery crops located in Florida counties that have received a Presidential disaster declaration for hurricanes Charley and Frances will be eligible for special disaster relief, announced Agriculture Secretary Ann M. Veneman today in Bartow.

“We would like to thank the President and Secretary Veneman for their swift response to the needs of these segments of the agricultural community in Florida,” said Carl Loop, Jr., president of Florida Farm Bureau Federation. “Hopefully the other agricultural industries impacted will soon receive relief as well.”

Veneman stated that President Bush is committed to providing relief to Floridians. USDA will use existing funds and authorities to quickly launch the Florida Hurricane Agricultural Disaster Assistance in an effort to help growers in their cleanup efforts and to compensate them for lost crops and trees. Governor Jeb Bush and Rep. Adam Putnam were also in attendance.

“We are now in the process of determining agricultural damages from Hurricane Ivan in Florida and other states, as well as damages to agricultural production beyond citrus, fruits and vegetables and nursery operations from Hurricanes Frances and Charley. We will continue to provide the same level of response to other hurricane-impacted agricultural sectors as our damage assessments are completed.” Veneman added, “We also will continue to work with Congress to ensure adequate funding for hurricane relief.”

Ray Hodge, Florida Farm Bureau’s national affairs coordinator, has been working diligently with the leadership in Washington. “Florida Farm Bureau will focus our efforts on ensuring that all the commodities waiting for assistance are included in a comprehensive supplemental agricultural disaster package,” said Hodge. “We are hopeful that the President will address our needs in his expected package and, if not, we believe our Congressional delegation will provide the leadership. We have disaster assistance pending in the Senate and we appreciate Senators Nelson and Graham for this work.”

Sign-up for citrus, fruits and vegetables and plasticulture vegetables under Florida Hurricane Disaster Assistance will begin early October with payments beginning shortly after sign-up. A sign-up date for nursery producers will be announced in the very near future.

The Florida Farm Bureau Federation is the state's largest general-interest agricultural association with more than 150,000 member-families statewide. There are Farm Bureaus in 62 counties in Florida, where agriculture comprises a stable, vital leg of Florida's economy, rivaling the tourism industry in economic importance. Headquartered in Gainesville, the Federation is an independent, non-profit agricultural organization and is not associated with any arm of the government. More information is available on the organization’s website, http://FloridaFarmBureau.org.

-30-


PAYMENT DETAILS

Citrus Crop Losses for Hurricanes Charley and Frances

Citrus producers will be reimbursed on a per acre basis for each eligible grove. Payments will be based on the severity of destruction as determined by the path of the storms and damage estimates developed by the Farm Service Agency (FSA) in cooperation with the Florida Department of Agriculture. The formula will take into account various levels of losses generally correlating to the distance from the eye of the hurricanes, the average production loss, tree loss, and rehabilitation and cleanup costs. Further explanation is given in the following table.


Severity of destruction Payment rate per acre for insured producers ($)

Tier 1 >75% crop loss and associated tree damage 1,500
Tier 2 50-75% crop loss and associated tree damage 1,000
Tier 3 35-50% crop loss and associated tree damage 600
Tier 4 <35% crop loss and associated tree damage 100

Payments for eligible fruits and vegetable producers will be based on a per acre basis, and payments for plasticulture vegetable producers will be based on the type of planting application or method installed or completed at the time the hurricanes hit. Plasticulture refers to production practices where the soil has been bedded, fumigated, fertilized, drip irrigation tape installed and plastic-mulch laid. The production cost for plasticulture is much higher than for conventional row-cropped vegetables. Payments for plasticulture losses will be made in three categories based on the relative amount of investment. The following table provides payment details.


Vegetable Crop Losses for Hurricanes Charley and Frances (For Plasticulture & Bare-ground Acreage)

Plasticulture Planted Acres (with Plants) $2,500 per acre

Plasticulture Acres With
No Planted Acres (no Plants) $2,000 per acre

Plasticulture Double-Cropped Plastic Acres $1,000 per acre

Conventional Row-Cropped Vegetable Acres
Suffering Substantial Losses $250 per acre


Nursery Crop Losses for Hurricanes Charley and Frances

Nursery payments will be based on a percentage of inventory loss (exact percentage is yet to be determined) plus a flat rate payment of $250 per acre to address general cleanup costs from the hurricanes.

Payments for this assistance are authorized under Section 32 of the Agricultural Act of August 24, 1935, which allows the Secretary to restore producers’ purchasing power. Aid to producers under this program is estimated at more than $500 million. The use of these funds will not impair the Department’s ability to meet its responsibilities under the child nutrition programs and other food assistance programs. These important nutrition programs are fully financed and all of the entitlements will be provided. Also, funding will continue to be available to purchase surplus agricultural commodities that will be donated to food assistance programs.

Each producer payment is limited to $80,000. Payment rates will be 5 percent less for producers who did not obtain Federal Crop Insurance, which is available from the Risk Management Agency, or on coverage under the Noninsured Crop Disaster Assistance Program (NAP), which is available from the FSA. Similar to a number of other USDA programs, payments will not be available for producers whose adjusted gross income is $2.5 million or higher, unless 75 percent is derived from farming and forestry. In addition, producers will be required to agree to purchase crop insurance for next year’s crop. Other conditions will apply. A Federal Register notice will be published providing more program details.

The closing date for sign-up will be announced at a later date, but producers will be given ample opportunity to complete the process. Producers in any of the eligible counties are encouraged to visit their local FSA county office to begin the sign-up process.

The FSA has developed a Web page that provides producers with one convenient location for details on the new disaster assistance, as well as other existing assistance. The Web page can be accessed at http://disaster.usda.gov.

For more information about other disaster assistance, producers should contact or visit local county FSA offices or USDA Service Centers.