Friday, October 30, 1998

USDA announces $2.8 billion in market loan assistance payments

By J.T. SMITH Farm Editor

U.S. Rep. Charlie Stenholm praised the annoucement by U.S. Agriculture Secretary Dan Glickman Thursday concerning the delivery of $2.8 billion in USDA Market Loss Assistance Payments contained in the omnibus spending bill recently signed into law on Oct. 21.

Glickman announced Thursday that starting Nov. 3, the Market Loss Assistance Payments will be issued to farmers who were eligible for fiscal year 1998 Production Flexibility Contracts (PFC) or "Freedom to Farm" payments. The Market Loss money will amount to about 49.72 percent of the total PFC payment to be made to a producer under the 1996 farm law that guides the nation's current federal farm policy.

This means nearly $24 million will be sent to producers within the 17th Congressional District, much of it in the immediate Abilene region.

Eligible producers automatically will receive the Market Loss payments through the mail with no further action necessary on their part.

"I am pleased that the Secretary has moved so quickly to bring this vital assistance to our farmers," Stenholm said. "Folks devastated by economic and natural disasters beyond their control need to meet their expenses so that they can remain in farming and continue contributing to their local communities which rely on agriculture for their economic well being."

The annoucement late Thursday brought optimism from drought-stricken area ag producers and farm leaders.

"It's absolutely a lifesaver," said Woody Anderson, a Colorado City cotton grower. "Not just for rural folks and farmers - but for urban businesses that depend upon them too. For example, Abilene is my trade center - it's where I shop."

When cattle, cotton and oil hurt in the Abilene region, <I>everyone<I> hurts, Anderson noted.

Lindy Patton, state director of the Texas Boll Weevil Eradication Program, Abilene, said rural areas would have been devastated without some relief. The money will help buy some time.

"From what I've seen traveling the country - and talking with bankers - I don't know what we would do without it," Patton noted. "Hopefully, the markets (prices) will turn around and it will start raining, too. But this could help some people stay in business in the meantime."

Patton, the former executive vice president of the 30-county Rolling Plains Cotton Growers, said when Stenholm brought Secretary Glickman to Abilene, Colorado City and Snyder in August to tour drought-beaten region, it was an eye opener for Glickman.

Later, Patton noted, Stenholm also got the attention of the U.S. Congress focused on the worst drought in a century in Texas, and eventually helped muster a bi-partisan compromise on relief between the Republicans and Democrats in Washington.

Details on how the the remaining assistance provided by the spending bill - including livestock feed reimbursement, dairy payments and assistance to alleviate crop losses resulting from 1998 and multi-year disasters - are expected in the near future.

"I remain concerned about the lack of a plan to address the natural and economic disaster situations, should they continue to exist next year," Stenholm added. "We need to take a serious look at whether the 1996 Farm Bill is able to address those situations and work for risk-management tools that can provide a dependable safety net."

The 7-year 1996 Farm Bill governs federal agricultural policy through Year 2002.

J.T. Smith can be reached at 676-6767.