Federal relief likely for flood victims as well as current suggestions for loan and livestock death support now.

Jacqui Fatka, Policy editor

March 27, 2019

5 Min Read
flood damage Nebraska 2019 USDA.jpg
Flood damage on Bill Luckey Farm in Columbus, Neb. in March 2019. USDA photo by Bill Luckey

The Senate advanced by a vote of 90-10 emergency supplemental appropriations legislation that will help millions of Americans recover and rebuild from recent natural disasters. The measure provides $13.45 billion in supplemental funding for states and territories recently ravaged by tornadoes, flooding, hurricanes, wildfires, earthquakes, volcanoes, typhoons and other such events.

The Senate’s procedural vote on emergency supplemental appropriations legislation March 26 kicks off debate that will likely lead to conference negotiations with the House and a deal both chambers can approve for President Donald Trump’s signature.

The supplemental appropriations bill provides critical aid for states affected by disasters in 2018 as well as ongoing relief for disasters that occurred in 2017, including: agricultural disaster relief for farmers; development grants for small, rural communities; assistance for veterans’ health facilities and military construction projects; emergency funds for critical timber, watershed and wastewater infrastructure needs, and resources to restore highways, aviation facilities and other transit projects.

The measure also includes an additional $600 million in nutrition assistance for Puerto Rico – a key priority of the bill for Democrats. In addition, the legislation expands eligibility certain types of disaster relief for states in the Midwest and the South that have experienced catastrophic flooding and tornadoes in 2019.    

Related:Flooding impact on farmers continues to rise

Sen. Chuck Grassley (R., Iowa) said he was grateful for work by Senate Appropriations Committee chairman Richard Shelby (R., Ala.) to include funds in the supplemental disaster bill to offer assistance to those affected by the recent floods.

“This will help meet some additional needs beyond the regular [Federal Emergency Management Agency] disaster aid that is flowing as a result of President Trump’s declaration of a major disaster. I also appreciate chairman Shelby’s willingness to keep working with us in the future as more estimates come in and more needs are identified,” Grassley said.

“Millions of Americans are hurting as a result of natural disasters that have occurred since 2017,” Shelby said. "This legislation is the product of months of bipartisan discussions and contains important input from both sides of the aisle and both chambers of Congress. It now also includes critical relief for states like Iowa, Nebraska, Missouri and Kansas that are experiencing ongoing, catastrophic flooding."

At a roundtable discussion earlier this week, Nebraska Gov. Pete Rickets estimated that damages are at unprecedented levels. In its request for federal disaster assistance, Nebraska estimated $1.3 billion in damages to agriculture, levees, roads, homes and businesses, with agricultural damages alone at $1 billion.

Related:Ag losses, damage from bomb cyclone nearing $1b in Nebraska alone

Initial damages to the Iowa’s agricultural industry are estimated at $214 million. Iowa Gov. Kim Reynolds had issued a preliminary estimate of $1.6 billion in damages to agriculture, levees, roads, homes and businesses.

On Friday, Iowa secretary of agriculture Mike Naig will be joined by U.S. Department of Agriculture undersecretary Bill Northey and Grassley to host a producer meeting regarding the recent flooding in southwest Iowa.

“We recognize that we’ve got a long road ahead of us. The Iowa Department of Agriculture & Land Stewardship will continue working closely with the governor’s office, other state agencies, the USDA and our state’s elected officials to coordinate relief efforts. In the meantime, we know that Iowans will do what we do best: band together to help our neighbors in need,” Naig said in a statement.

Loan assistance

The Farm Credit Administration (FCA) is encouraging Farm Credit System (FCS) institutions to work with FCS borrowers who have been affected by the extensive flooding in the Midwest.

The mid-March “bomb cyclone” dropped heavy rain and triggered massive snowmelt, which led to widespread flooding in the Midwest, particularly in Nebraska and Iowa. Known damages include losses of livestock, production facilities and grain in storage. Also, saturated soil is adversely affecting preparations for spring planting.

FCS institutions can alleviate stress for borrowers affected by natural disasters in several ways, such as:

  • Extending the terms of loan repayments;

  • Restructuring borrowers’ debt obligations, and

  • Easing some loan documentation or credit extension terms for new loans to certain borrowers.

“FCA regulations and the solid financial position of system institutions offer considerable flexibility in providing disaster relief,” FCA board chairman and chief executive officer Dallas P. Tonsager said. “We encourage institutions to use this flexibility following disasters like this one to help borrowers get back on their feet.”

Livestock losses

One of the more significant losses landowners have experienced is livestock death. The U.S. Department of Agriculture’s Natural Resources Conservation Service (NRCS) has assistance available to help landowners cope with the aftermath of livestock deaths.

Through NRCS’s Environmental Quality Incentives Program (EQIP), farmers and ranchers can apply for assistance to properly dispose of dead livestock. Applications are being accepted now through April 5. The second cutoff date is May 1. Additional application cutoff dates may be announced if there is demand and funding is available.

In Nebraska, NRCS state conservationist Craig Derickson said, “This was an unprecedented and devastating event for Nebraska. Some ranchers are dealing with hundreds of dead animals. This is not only damaging to their bottom line, but if these animals are not disposed of properly, there could be negative impacts to water quality and other natural resources. NRCS conservationists are available to provide technical and financial assistance to help producers dispose of livestock carcasses in a safe manner.”

Producers who have not already disposed of livestock can apply for EQIP now. Producers can then get a waiver that allows them to begin working to dispose of deceased livestock before having an approved EQIP contract.

“Typically, producers cannot begin working on an EQIP practice before their EQIP contract has been approved, but since this situation is so time critical, NRCS is encouraging producers to sign up for EQIP first, then submit a waiver to go ahead and begin animal disposal prior to having their EQIP contract approved,” Derickson said.

Producers in the area who suffered other damages due to the blizzard and flooding – such as damaged fencing, water sources or windbreaks – may also seek assistance from NRCS through general EQIP funding. The signup period for general EQIP is continuous and has no cutoff application date.

Derickson said, “NRCS is committed to helping producers get back on their feet after these extreme weather events while also ensuring Nebraska’s natural environment remains healthy and productive.”

About the Author(s)

Jacqui Fatka

Policy editor, Farm Futures

Jacqui Fatka grew up on a diversified livestock and grain farm in southwest Iowa and graduated from Iowa State University with a bachelor’s degree in journalism and mass communications, with a minor in agriculture education, in 2003. She’s been writing for agricultural audiences ever since. In college, she interned with Wallaces Farmer and cultivated her love of ag policy during an internship with the Iowa Pork Producers Association, working in Sen. Chuck Grassley’s Capitol Hill press office. In 2003, she started full time for Farm Progress companies’ state and regional publications as the e-content editor, and became Farm Futures’ policy editor in 2004. A few years later, she began covering grain and biofuels markets for the weekly newspaper Feedstuffs. As the current policy editor for Farm Progress, she covers the ongoing developments in ag policy, trade, regulations and court rulings. Fatka also serves as the interim executive secretary-treasurer for the North American Agricultural Journalists. She lives on a small acreage in central Ohio with her husband and three children.

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