U.S. Senator Ken Salazar Member: Agriculture, Energy, Veterans' Affairs, Ethics and Aging Committees 2300 15^th Street, Suite 450 Denver, CO 80202 | 702 Hart Senate Building, Washington, D.C. 20510
For Immediate Release May 4, 2006		CONTACT: Cody Wertz – Comm. Director 303-455-7600 Andrew Nannis – Press Secretary 202-224-5852
Sen. Salazar’s Ag Disaster Relief Funding Included in Emergency Supplemental WASHINGTON, D.C. – Farmers, from across the United States and Colorado, reeling from high gas prices and recent droughts could expect disaster relief soon. Today, the Senate passed the $109 billion emergency supplemental today which included the Agricultural Disaster Assistance Act of 2006. The amendment, which Senator Salazar helped introduce, provides $3.9 billion in emergency agriculture disaster relief funding to farmers and ranchers who have suffered smaller harvests as a result of drought and other natural disasters, lower prices, and higher input costs. “This is an important step forward for farmers, ranchers and rural communities across Colorado and America. The combination of drought, other natural disasters and rising input costs have been a triple blow to our rural communities, and this bill can provide immediate relief. I urge members of the House and Senate conference committee to keep this critical disaster relief in the final emergency supplemental,” Senator Salazar said. The amendment provides immediate emergency relief to agricultural producers for losses incurred during the 2005 production year. Specifically, the legislation provides assistance for crop production loss as well as assistance for sugar-beet losses. The bill also provides for a Livestock Compensation program for producers in designated disaster counties to help cover their added costs of procuring livestock feed. Finally, this legislation provides supplemental nutrition and economic disaster assistance in the form of a supplemental direct payment. Over the past six years, Colorado has suffered from ongoing natural disasters including drought compounded by soaring gas prices already inflated by Hurricane Katrina. Some Colorado agriculture disaster statistics: Farm fuel has increased by nearly 80% from $1.40 per gallon in September of 2004 to around $2.60 per gallon in September 2005. Senator Salazar heard from one Colorado farmer in Kit Carson County who has estimated that in order to harvest this year, he will need an additional $46,000 to cover fuel costs alone. According to Colorado State University, direct and indirect energy costs for production of dry land winter wheat have increased by 40% from 2003 to 2005. It has been downhill for the 2005 Colorado winter wheat crop since last May. In fact, estimates show that it will be the fifth below average winter wheat crop in six years – with potential losses to producers of over $60 million. Colorado wheat producers have told Senator Salazar’s office that it would take a 40 bushel average yield per acre and an average price of $4.00 per bushel to cover all of these additional costs and break even. Unfortunately, the average yield in 2005 was 24 bushels per acre and the average price is projected at $3.34 per bushel. The full Emergency Supplemental will now go to conference committee with the House. The House version does not include any agriculture disaster relief funds. ###