USDA Announces Hurricane Disaster Assistance

January 27, 2006 - 09:42

Agriculture Secretary Mike Johanns recently 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 restore homes and rural communities.

"These funds will help producers of many different crops and livestock to recover from damage to their agricultural operations," Johanns said. "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."

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) and the Feed Indemnity Program (FIP); and an Aquaculture Block 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. A complete list of these counties is posted online at:

Sign-up dates for the new programs (LIP, TIP, HIP and FIP will be announced as soon as new regulations and software are developed. Eligible producers can apply now at any USDA Service Center for Emergency Conservation Program funds to remove hurricane debris from farmland. Emergency Watershed Protection Program funds for eligible projects are available now.

In addition to the funds for farmers and ranchers, 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.

Prior to this funding announcement, USDA has made available more than $1.7 billion to hurricane victims since September 2005, bringing 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 assistance.

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.

USDA's assistance is part of a larger, comprehensive relief effort being coordinated by the Department of Homeland Security.

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