Washington, DC (February 28, 2006) – Today, Congressman Rubén Hinojosa (TX-15) joined fellow Members of Congress from South Texas in sending a letter to Secretary of Agriculture Mike Johanns requesting assistance from the Department to alleviate drought conditions in:  Cameron, Hidalgo, Willacy, Webb, Starr and Zapata Counties.

These counties are experiencing one of the most severe droughts in the past 40 years.  Current USDA crop insurance policies force farmers to plant crops regardless of soil and weather conditions, meaning the potential for severe losses in crops and revenue.

“Agriculture is the economic engine that drives our economy,” said Hinojosa.  “When conditions are as severe as they are right now in South Texas, we must do all we can to minimize potential losses in crops and revenue.  I urge Secretary Johanns and USDA to increase supplemental disaster payments as soon as possible.”

Below is text of the letter:
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Dear Secretary Johanns,
 
We the undersigned Members of Congress respectfully request your immediate assistance to alleviate devastating drought conditions in Cameron, Hidalgo, Willacy, Webb, Starr, and Zapata Counties in the Southern Tip of Texas.  This area, commonly referred to as the Rio Grande Valley of Texas, along with the entire State of Texas, is suffering a severe drought, one of the worst in four decades. The dryland producers in the Rio Grande Valley are quickly passing their optimal planting window, due to little or no soil moisture.
 
While this in itself is a problem, these producers are also facing a problem with their crop insurance.  Multi Peril Crop Insurance (MPCI) thru the Risk Management Agency (RMA), gives the producers very little choice except to plant, even though all involved know those seeds have no chance of producing a viable crop.  There is a prevented planting clause in the MPCI policy, but it will only pay 60% on feed gains and 50% on cotton, of the policy level coverage level already chosen by the producer.  These reduced levels of compensation are not enough to recoup the input costs already incurred in fall land preparation.  Knowing this, these dryland farmers are left with little choice except to plant.
 
The act of planting in these extremely dry soils will disturb whatever soil cover has been there through the fall and bring to the surface, dry loose dirt.  With no moisture or groundcover to hold the soil in place, the strong South Texas winds will create huge dust storms, causing a vast degree of erosion and topsoil losses.
 
• Mr. Secretary, to avoid this calamity we are urgently requesting that USDA use emergency authority to increase the crop insurance prevented planting payments by 35 percent on cotton and grain sorghum and that these payments come from disaster funds and not through RMA like the regular prevented planting payment.  

We would expect this supplemental disaster payment would be made by the Farm Service Agency after the regular crop insurance payments are made for prevented planting.  We urge you to make the commitment for the supplemental payment by March 2 so farmers will have time to make and execute their decision.
 
We realize this disaster covers several counties, but the attached example demonstrates how the proposal will actually save the federal government money in the McCook area where there is approximately 62,000 acres of dryland grain sorghum.  This analysis was done by Dr. Luis Ribera, Economist, Texas Cooperative Extension in Weslaco, Texas.  It shows $589,895 in savings by providing farmers the extra 35 percent that would give them an adequate incentive not to plant as compared to the status quo where growers are going to feel forced to plant to collect the maximum amount from crop insurance they are entitled to receive.
 
We stand ready to help you bring relief to this area in need. Due to the time sensitive nature of this request, please feel free to contact us any time if we may be of further assistance.