NASDA Supports Supplemental Disaster Assistance Program in Farm Bill; Joins 51 organizations to Urge Support of Senators
News Date November 07, 2007
This week, NASDA and 51 agricultural organizations, banks, and businesses urged members of the U.S. Senate to support the Supplemental Disaster Assistance Program in the 2007 farm bill. In the letter, the groups pointed out that 34 ad hoc disaster packages have been approved since FY89, totaling $59 billion. Each approved measure requires the USDA to recreate an implementation plan that often results in new guidelines and sign up requirements. A standing disaster program will ensure a consistent and reliable implementation strategy is in place for any future weather-related disaster.
In a separate letter to Congress, NASDA President and North Dakota Agriculture Commissioner Roger Johnson emphasized the importance of a Supplemental Disaster Assistance Program. "NASDA believes disaster assistance should always be an option in the face of national crisis, but it must be provided in an ongoing, consistent, and predictable manner to be fully effective," Johnson said in a letter to Senators. The proposed disaster assistance program is designed on guiding principles supported by NASDA including the following important features:
* Does not undermine the crop insurance program. Rather, the program provides an incentive for producers to buy higher levels of crop insurance coverage;
* Assistance is provided on a "whole-farm" revenue basis; targeting assistance for genuine losses when truly needed;
* Focuses on "shallow losses" not covered by crop insurance programs;
* Includes assistance for livestock and uninsurable specialty crops; and
* Is predictable for producers.
The proposed program works in concert with current risk management programs, such as crop insurance and the Non Insured Assistance Program, by requiring producers to purchase coverage and providing an incentive to purchase higher levels of coverage. The letters can be located on NASDA's website.
The U.S. Senate is considering the 2007 farm bill this week. (Contact: Jennifer Yezak)