NAVASOTA -- U.S. Agriculture Secretary Dan Glickman today told drought-stricken ranchers in Central Texas aid could come within two weeks if a bill currently before Congress is passed..
The Senate version of the bill calls for $500 million in emergency assistance. It would give the U.S. Department of Agriculture the authority to provide supplemental benefits for people who have lost row crops under insured on crop insurance and livestock feed assistance.
Glickman told the group gathered at the Tom Moore farm southwest of Navasota, "My judgement is after we assess the damage in various states, the damage is going to be much greater than that." Glickman was on a two-day tour to assess drought damage in the state.
Texas leads the nation in livestock production. Texas Agricultural Extension Service economists estimated the current drought has caused $1.5 billion in losses for farmers and ranchers and will squeeze at least $4.6 billion out of the Texas economy in the next 18 months.
Lost cattle revenues of $44 million in Texas do not yet account for cattle producers who have begun selling lightweight calves and those culling their cow herds in the last few weeks due to the lack of grass.
If the measure is passed before Congress adjourns for the summer, the money could be available next month. However, if not passed, then it would be September before farmers and ranchers would see assistance.
"It is not going to be sufficient in the current amount to cover everything that's been happening, but it's a start," Glickman said.
Additionally, he acknowledged the lack of universal coverage of crop insurance. It does not work very well for people who have catastrophic or repeated disasters, he said. There is no real coverage for livestock producers, either.
Still, he said, "We have paid out significant amounts of money in crop insurance."
The USDA is paying about $30 million a week in crop insurance payments; in all an estimated $500 million has been paid in Texas this year. Predictions are that could increase to $700 million. About $100 million is the normal payout, he said.
The major problem he saw, Glickman said, is short-term relief to the problem. "We've got some real problems here because of credit issues," he said, noting that the low-interest loans available to producers are of limited use and available only if they've been turned down twice by other lenders. Many farmers can't afford to take on more debt.
"We need some resources out here immediately," he said.
The 1996 Farm Bill eliminated the livestock feed program which enabled USDA to be able to go out and buy feed, then sell it or provide it directly to producers. "I don't have that authority now," he said.
Matt Moore, whose family has raised cattle here for five generation, told Glickman he normally has 850 calves grazing the 650 acres the agriculture secretary toured today. Moore cut that number back to 250 in February, has restocked a few head but never has been able to go back up to the normal number. Still, he is having to feed the cattle 10 pounds of feed per day.
"It's kind of tough to make things work without rain," he said.
Also, John Malazzo, who ranches near Caldwell, told Glickman he and his father have culled their herd about 15 percent already. They are expecting to cut another 30 percent to 40 percent of their cattle if it does not rain in the next 30 days. His alfalfa hay cost has doubled from $80 to $90 per ton to $170 per ton, he said.
Glickman said he hopes Congress will act quickly. "I personally don't believe there should be a problem here," he said.
DRGHT TOP