Economist Gives Quick Overview
Of Emergency Assistance Program

By Jose G. Peña
Extension Economist

(Editor's note: One aspect of the federal emergency Livestock Assistance Program that has drawn little attention is that it essentially excludes coverage for horses. One reading would allow inclusion of a single horse per 50 other animal units, a ratio some government staffer apparently concluded was appropriate for working stock. Those who raise horses to supply stockmen's needs appear to be out in the cold, however.)

Ranchers are reminded that the sign-up period for the $200 million Emergency Livestock Feed Assistance program, funded by Congress in the recent omnibus appropriations bill, began across the nation on November 23 and ends on January 8, 1999. Congress, so far, has not approved a late sign-up period, so sign-up ends promptly at the end of the workday on January 8, 1999. Keep in mind that this will not be a cost-share program, but a straight check disbursal from the U.S. Department of Agriculture.

The feed assistance program, however, is county-specific since drouth losses this past summer were highly variable across the state and the nation. The sign-up starting date for individual counties may have been different, depending on when program participation application was made by the county. According to Nancy Condit, Director, Uvalde-Real county Farm Service Agency, for example, sign-up for Uvalde and Real counties began on December 3, 1998, after program participation approval was received, and will end on January 8, 1999.

The Livestock Assistance Program, administered by the Farm Service Agency, provides payments to eligible livestock producers who suffered losses from natural disasters in 1998. It provides a partial reimbursement to eligible producers for grazing losses. Benefits for producers with hay losses may be available under the Noninsured Disaster Assistance Program (NAP) or 1998 ad hoc disaster program.

The program is available to eligible producers only in counties where a natural disaster occurred and there was a 40 percent reduction or more in normal precipitation for four months; excessive moisture greater than 140 percent of normal precipitation for four months; or a severe shortage in pasture growth due to excessive heat, insects, or disease; and there was a 40 percent loss of available grazing for a minimum of 90 consecutive days due to the natural disaster.

Assistance is not available in contiguous counties under this program. Each county must qualify on its own merits.

According to Ms. Condit, eligible livestock includes beef and dairy cattle; buffalo or beefalo when maintained on the same basis as beef cattle; sheep; goats; swine; and equine animals used commercially for human food or kept for the production of food or fiber on the owner's farm.

While this past summer's drouth was severe in Texas and livestock producers in Texas may be able to take substantial advantage of this program, early estimates indicate that all or parts of at least 16 other states, besides Texas, are considered eligible to participate in the program. And, while all of the counties in Texas applied for program participation eligibility, information as to which counties have been approved to participate in the program was not available as of this writing. It is expected that most of the counties in South, South Central and East Texas will be approved. Livestock producers are encouraged to inquire about the program at their county Farm Service Agency.

While this program covers the entire year from January 1998 through December 31, 1998, loss period eligibility is county-specific. County committees were required to prove that their county had incurred at least a 40 percent loss of grazing production during any 90 day period in calendar year 1998 to be approved for program participation. Program application loss eligibility dates for Uvalde County, for example, include losses during the period of May 1 through September 16, 1998.

Livestock producers with feed losses as a result of this past spring/summer devastating drouth can look for a payment equal to up to 80 percent of the loss, depending on county-specific loss estimates. Payments will be issued probably early in 1999.

Participation Eligibility

Eligible producers who: Suffered at least 40 percent grazing loss for 90 or more consecutive days. Possess beneficial interest and have financial risk in the eligible livestock. Have completed "person" determination forms. Are citizens of, or legal resident aliens in the United States. Are in compliance with highly erodible land and wetland conservation provisions. Earned less than $2.5 million gross annual revenue in the 1997 tax year.

Required Information For Participation

Number, type and weight range of livestock owned during calendar year 1998. Acres, location and type of grass or forage on which a loss occurred. Percent of grazing loss. Information about changes in livestock numbers and dates when changes in livestock numbers occurred.

The county Farm Service Agency will provide information and assistance to apply for program benefits.