Click to view: http://www.usda.gov/Newsroom/0291.04.html See Also: 2004 Nonfat Dry Milk Livestock Feed Assistance Initiative - http://disaster.fsa.usda.gov/2004ndm.htm Fact Sheet: USDA Drought-Related Programs - http://www.usda.gov/Newsroom/fs0199.04.html Drought Assistance - http://disaster.usda.gov/drought_jump.htm Release No. 0291.04 Wayne Baggett (202) 720-4623 Jillene Johnson (202) 720-9733 VENEMAN ANNOUNCES LIVESTOCK FEED ASSISTANCE INITIATIVE TO AID PRODUCERS IN DROUGHT AREAS WASHINGTON, July 16, 2004 -- Agriculture Secretary Ann M. Veneman today announced that the U.S. Department of Agriculture would again provide surplus USDA stocks of non-fat dry milk (NDM) to livestock producers in areas hardest hit by continuing drought. "We are pleased to again offer this program that has provided needed relief to livestock producers in areas hit hardest by drought, " said Veneman. "This program will help livestock producers maintain their herds until pastures regain growth." In April 2003, Secretary Veneman established a national interagency drought council to monitor ongoing drought conditions and the impact on agriculture producers. The council also has worked to find ways to use existing programs and develop new initiatives to provide assistance to farmers and ranchers. One of the programs developed by the council began last year and utilized surplus stocks of non-fat dry milk, which are not destined for human consumption. To date, USDA has provided almost 400 million pounds of nonfat dry milk in 10 states and 85 counties to supplement the feed for 2.3 million head of beef cattle, sheep, goats and bison. The non-fat dry milk initiative is in addition to emergency grazing that Veneman announced June 24 on Conservation Reserve Program Acres to provide relief for farmers and ranchers in qualifying areas. To help producers find hay supplies, USDA has a website for producers to list information concerning the need for hay or the availability of hay for sale. The "Hay Net" website is located at www.fsa.usda.gov/haynet/. Information about other programs available can be located at disaster.usda.gov/. The Administration has also been aggressive in enhancing the risk management tools that farmers have at their disposal. Last year, the Risk Management Agency provided more than $3.2 billion in indemnities and provided coverage for more than 75% of total cropland acreage. Approximately 95 counties in nine states currently meet the initial eligibility criteria for the NFDM program. The states with eligible counties are: Arizona, Idaho, Montana, Nebraska, Nevada, New Mexico, Oregon, Utah and Wyoming. The U.S. Drought Monitor is used to determine which counties are eligible to ensure the initiative is targeted to producers in greatest need. To be eligible, counties must meet one of the following two criteria: · A county, or part of the county, is located in a "D4-Exceptional" category based on the June 15, 2004 Drought Monitor; or · A county, or a part of the county, is located in a D4 Exceptional category at any time during the six months prior to June 15, 2004, and be in at least a D3-Extreme Category based on the June 15, 2004 Drought Monitor. -more- -2- The quantity of NDM made available will be based upon 75 percent of the size of foundation livestock herds of beef cattle, sheep, goats, and bison in such counties. A 30-day supply of NDM will be calculated at the rate of two pounds of NDM per eligible bovine and bison per day, and one-half pound of NDM per sheep and goat per day. The Commodity Credit Corporation (CCC) may make adjustments to these quantities as it determines appropriate. To assure proper use of the NDM, new provisions to the 2004 initiative include: · New Restricted Use Sales Agreement, Form CCC-334 (Agreement), with feed dealers; · Denaturing of NDM by CCC before shipment to the feed dealers to prevent human consumption; · Selling of NDM to feed dealers under restricted use provisions for $275.00 per 41,500 pounds; · Permitting inspection of feed dealer inventory and related records to ensure compliance with 2004 NDM Livestock Feed Assistance Initiative provisions; · Disallowing/prohibiting the use of NDM as feed for dairy cattle, veal, poultry, swine, or fish; and · Prohibiting the exportation of the NDM outside of the United States. The U.S. Drought Monitor is a partnership of the U.S. Department of Agriculture (Joint Agricultural Weather Facility and National Water and Climate Center), the National Weather Service's Climate Prediction Center, National Climatic Data Center, and the National Drought Mitigation Center at the University of Nebraska, Lincoln. Advice from many other sources is incorporated in the product, including virtually every Government agency dealing with drought. Accordingly, the U.S. Drought Monitor has become a widely accepted tool for determining the areas of the United States impacted by drought. 2004 Nonfat Dry Milk (NDM) Livestock Feed Assistance Initiative Questions and Answers Question: How will this program operate? Answer: The Commodity Credit Corporation (CCC) will provide assistance, through the 2004 NDM Livestock Feed Assistance Initiative, to livestock producers in States that need help in maintaining foundation livestock herds as the result of extreme drought conditions. In order to help provide assistance to these livestock producers, CCC will sell, through feed dealers identified by the State, a portion of its Nonfat Dry Milk (NDM) inventory, which has been denatured, as livestock feed under section 165 of the Federal Agriculture Improvement and Reform Act of 1996. The CCC has been working with the U.S. Drought Council and its Drought Monitor in determining the amount of assistance producers need and the States suffering the most severe impact of the drought. Question: Why is the U.S. Drought Monitor used to determine drought-impacted areas of eligibility? Answer: The U.S. Drought Monitor is a partnership of the U.S. Department of Agriculture (Joint Agricultural Weather Facility and National Water and Climate Center), the National Weather Service's Climate Prediction Center, National Climatic Data Center, and the National Drought Mitigation Center at the University of Nebraska, Lincoln. Advice from many other sources is incorporated in the product, including virtually every Government agency dealing with drought. Accordingly, the U.S. Drought Monitor has become a widely accepted tool for determining the areas of the United States impacted by drought. Question: How does CCC determine how much NDM the States receive? Answer: Each State will receive an initial allocation of NDM based on the eligible counties and the number of foundation beef cattle, buffalo, sheep, and goats in the county or on land in the county under Tribal jurisdiction. The allocation is based upon two pounds per day for beef cattle and buffalo, and one-half pound per day for sheep and goats. Allocations will be made in 30-day increments. The most recent National Agricultural Statistics Service data for eligible livestock, if available, will be used to determine the first, and succeeding allocations, as applicable. Question: Why are only foundation livestock eligible for assistance under this program? Answer: Foundation livestock herds are the backbone of many local economies. Many of these herds have taken generations of breeding to develop current bloodlines and genetics in the herds. In order to target the available NDM most effectively, it was decided to target the NDM to foundation livestock producers. Question: How much NDM will be available to individual foundation livestock producers? Answer: States are responsible for the allocation of NDM to foundation livestock producers within their jurisdictions. Question: Is there a list of contacts available online? Answer: Yes, a list of Non-fat Dry Milk (NDM) Initiative Contacts is available online at: http://www.fsa.usda.gov/daco/2004ndm/POC.htm Question: Who will pay the transportation costs from CCC warehouses to the distribution points? Answer: CCC will pay the costs to transport the NDM from CCC warehouses to feed dealer locations. Question: How do feed dealers in States know if they are eligible to purchase NDM from CCC for distribution to producers? Answer: Upon determination that an eligible county lies within their jurisdiction, eligible States are contacted by CCC. States have the option whether or not to participate in the Initiative. If willing to participate, the State signs a Memorandum of Understanding with CCC and identifies feed dealers that will purchase the NDM from CCC for distribution to eligible producers. The feed dealers, identified by the State, must complete a Nonfat Dry Milk Restricted Use Sales Agreement, Form CCC-334, (Agreement) with CCC in order to purchase NDM. Question: How do feed dealers place orders for NDM? Answer: Feed dealers will execute a Non-Fat Dry Milk Restricted Use Sales Agreement, form CCC-334, with CCC before CCC will sell any denatured NDM to them. The CCC-334 will ensure proper use and distribution of the denatured NDM and contains information on how to order NDM. Question: Can feed dealers use excess NDM received under prior assistance initiatives for the 2004 Livestock Feed Assistance Initiative. Answer: Yes. However, the NDM delivered under prior initiatives was purchased by the States and Tribal Governments under specific terms and conditions. If feed dealers have excess NDM delivered under these initiatives, follow the terms and conditions of the applicable initiative under which the NDM was delivered. Question: What are the significant changes in the 2004 NDM Livestock Feed Assistance Initiative of which the feed dealers should be aware? Answer: Feed dealers, under the new agreement, should be aware that: · They must permit inspection of inventory and related records to ensure compliance with 2004 NDM Livestock Feed Assistance Initiative provisions; · The NDM cannot be used as feed for dairy cattle, veal, poultry, swine, or fish; · The exportation of the NDM outside of the U.S. is specifically prohibited; · They must repay CCC for any misused NDM at 50 cents per pound; · CCC will pursue export intervention activities with U.S. Customs to prevent exportation; and · There are criminal and civil penalties for feed dealer violations of the agreement. Question: What are the criteria used for determining whether a county is a drought-impacted area eligible under this initiative? Answer: Counties are eligible if they meet either of these eligibility criteria: USDA will determine allocation quantities using the U.S. Drought Monitor. A county must meet one of the following two criteria to be eligible: · The county or part of the county must have been a Level 4-Exceptional category on the Monitor at some time between December 1, 2003, and June 15, 2004; and be a D3-Extreme or D4-Exceptional category on June 15, 2004. · The county or part of the county must be a Level 4-Exceptional category on the Monitor on June 15, 2004. Question: What steps has the Department taken on drought and other related disasters? Answer: · The Department has taken many steps to effectively deal with problems created by drought, such as frequent assessment of crop and livestock conditions. Producers are encouraged to use drought programs currently available like the haying and grazing provisions under the Conservation Reserve Program. There are also low-interest loans available from the Farm Service Agency to help recover losses. · As of July 5, 2004, 424 counties in 21 States had been designated as primary natural disaster areas by the Secretary of Agriculture because of production losses from all causes during calendar year 2004. An additional 428 counties in 36 States were named as contiguous during the same period. Question: Does the Department support a disaster bill? Answer: It is too early in the growing season to consider a national disaster bill at this time. In the meantime, USDA will continue to fully utilize its resources to assist farmers and ranchers that are affected by drought and other natural disasters. # USDA News oc.news@xxxxxxxx 202 720-4623 ---------------------------------------------------- To unsubscribe, send email to oc.news@xxxxxxxx and reference your email address.
