NEWS
UNITED STATES DEPARTMENT OF AGRICULTURE
Office of Communications News Room 460-A
Washington, DC 20250-1300
Internet: News @usda.gov   Phone: 202-720-4623
World Wide Web Home Page: http://www.usda.gov            

   
Release No. 0327.06
                                                   Contact:
                             Kristin Scuderi (202) 720-4623
                             Stevin Westcott (202) 720-4178
  
JOHANNS FOCUSES USDA PROGRAMS TO AID DROUGHT REGIONS 

Aid Includes $780 Million in New, Unused and 
Accelerated Funding 
  
    HAYES, South Dakota, Aug. 29, 2006 - Agriculture 
Secretary Mike Johanns today announced during a visit 
to South Dakota $780 million in assistance to help 
farmers and ranchers manage drought and weather 
related production challenges. This funding includes a 
new $50 million program for livestock producers 
impacted by drought, focusing nearly $30 million in 
unused conservation funds on drought, and accelerating 
the delivery of an estimated $700 million in counter-
cyclical payments. 
    
"While some parts of the country are experiencing 
very good crop conditions, drought is taking a toll on 
farming and ranching operations in other areas of the 
United States this year," said Johanns. "Today's 
actions emphasize USDA's commitment to use every 
resource available to help farmers and ranchers who 
are impacted by drought." 
    
Livestock Assistance 
    
The new $50 million program for livestock 
producers, called the Livestock Assistance Grant 
Program, will provide $50 million in Section 32 to 
states in block grant form. States will distribute to 
livestock producers in counties that were designated 
as D3 or D4 on the Drought Monitor anytime between 
March 7 and August 31, 2006. The grants will help 
livestock producers restore their purchasing power. A 
list of eligibility criteria and eligible counties can 
be found at http://www.usda.gov  by clicking on the 
drought spotlight. 
    
Conservation Funds 
    
The nearly $30 million in unused conservation funds 
includes almost $19 million in unused Emergency 
Conservation Program (ECP) funds and $11 million in 
unused Grassland Reserve Program (GRP). The ECP funds 
will go to 27 states. Information on eligibility and a 
list of the states and funding is also posted online. 
The GRP funds will help to protect drought-affected 
grazing lands. The funds will be distributed to 14 
states. These funds will be focused on pending GRP 
applications for rental agreements in drought-affected 
areas. 
    Johanns also directed the Natural Resources Conservation 
    Service (NRCS) state conservationists to work with their 
    producers and state technical committees to focus remaining 
    FY 2006 and a portion of FY 2007 conservation program funds 
    on resource conservation 
practices related to drought response and mitigation. 
Programs such as the Environmental Quality Incentives Program 
(EQIP), the Wildlife Habitat Incentives 
Program (WHIP), the Agricultural Management 
Assistance (AMA) program, and GRP have built-in flexibility and 
local decision-making ability in order to encourage a focus on 
state-specific concerns, such as those related to drought. 
    
Counter-Cyclical Payments 
    
Johanns directed that 2005-crop year counter-
cyclical payments be delivered as quickly as possible 
to expand the financial resources of farmers facing 
drought. 

An estimated $700 million in payments to upland 
cotton and grain sorghum producers will be made this 
week. This will constitute the earliest delivery of 
counter-cyclical payments on record. Payments to 
peanut producers will also be expedited, following the 
calculation of the final 2005 average price. 

    Existing USDA Disaster Assistance 

As always, emergency loans are available to help 
producers in counties declared disaster areas. These 
low-interest loans are for producers who have suffered 
production or physical losses resulting from a natural 
disaster or quarantine in counties designated disaster 
areas by President Bush, or disaster or quarantine 
areas by Secretary Johanns. 

Prior to this announcement, USDA has allocated over 
$30 million in emergency conservation program and 
emergency watershed protection program funds for 2006 
disasters, including drought. The agency has released 
considerable Conservation Reserve Program (CRP) 
acreage to emergency haying and grazing and lowered 
the rental rate reduction to 10 percent from 25 
percent. 

Federal crop insurance and the Noninsured Crop 
Disaster Assistance Program (NAP) are also available 
to crop producers each year to help mitigate the risks 
associated with the adverse affects of heat and 
drought. Producers enrolled a record-high 246 million 
acres in crop insurance in 2005, with nearly 90 
percent of acres insured at levels above the minimum 
catastrophic level of coverage. Similar enrollment 
levels are expected this year. In addition, NAP is 
available for producers who grow crops for which crop 
insurance is not available. 

More information about today's drought assistance 
package and existing USDA disaster assistance is 
available at http://www.usda.gov