Ag News
Disaster Assistance Proposal has Backing
Published Monday, November 23, 2009 at 05:00 AM
Several national commodity organizations, including the National Cotton Council, representing producers, processors and related agri-businesses have offered their strong support for the Lincoln, Cochran and Wicker Disaster Assistance bill. The organizations say this bill can deliver urgently needed disaster assistance by utilizing a delivery mechanism similar to Direct Payments. The payments would be limited to growers in counties with Secretarial disaster declaration. The projected cost of the emergency assistance would be off-set so there is no increase in the budget deficit.

The groups say that although loss estimates are preliminary, they already have reached the hundreds of millions of dollars. They emphasized that many producers need assistance within weeks to repay loans and secure new financing in time for spring planting. The proposed bill has a - delivery mechanism which offers the combination of timely assistance for yield and quality losses that can be delivered with minimal administrative burden on USDA. They note that any alternative means of providing assistance, however well-intentioned, cannot be delivered before late 2010 or early 2011.

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