Johnson Joins New Disaster Assistance Bill to Cover 2005 & 2006

Washington, DC— As Congress comes back into session with 11 legislative days left on the calendar, U.S. Senator Tim Johnson (D-SD) immediately went to work with colleagues to introduce Emergency Agricultural Disaster Assistance Act of 2006 this afternoon. Senator Conrad (D-ND) was the original sponsor of the legislation.

"I went home and toured South Dakota. There are huge swatches of our state that could face depopulation because of a drought that is one of the worst since the Dust Bowl. The Administration offered up a plan that offers too little too late," Johnson said. "This plan would offer real relief to producers in desperate need. To pass it, the President would just have to say he wouldn't veto it. And then we could make sure that drought was treated like any other disaster and bring the necessary help home."

--Summary of Key Components

Production Loss Subtitle --

· Covers both the 2005 and 2006 production years.

· Emergency funding -- no budget offsets

· Elimination of the 95% cap on projected crop income and deductions for crop insurance and residual crop values.

· Production loss threshold at 35% and payment rate at 50% of the established price. Similar to prior disaster programs for insured and uninsurable crops. 35% for insurable crops that were not covered by the producer.

· Clarified quality loss provisions to apply actual market discounts realized by producers. Quality loss payments at 50% of per unit loss times 65% of production.

· Provides separate disaster assistance programs for sugar beets.

· Establishes a Livestock Compensation Program to help cover increased feed expenses for producers in disaster counties designated by the Secretary of Agriculture.

· Provides livestock indemnity payments for livestock losses due to hurricanes, floods, wildfires and anthrax.

· Provides $13 million for a Ewe Lamb Replacement Program.

· Includes flooded lands assistance program for the Devils Lake region.

· Provides $2 million for bovine tuberculosis herd indemnification.

· Prohibits "double dipping".

Economic and Nutrition Program Assistance --

· Provides $100 million in Section 32 funding for grants to states for food banks and other programs similar to 2000 program with a priority for specialty crops and livestock.

· Provides a supplemental payment to program crop producers equal to 30% of their 2005 FSRIA direct payment.

· Provides $147 million for economic assistance for dairy producers.

· Provides $300 million in economic assistance grants for small businesses who suffered material economic losses as a result of weather related agricultural losses.

Conservation --

· Provides $70 million for current emergency needs for the Emergency Watershed Protection Program.

· Provides $30 million in funding to address current emergency needs of the Emergency Conservation Program.

Farm Service Agency (FSA) --

· Funds additional personnel for the FSA county offices to implement the disaster assistance program.