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Long awaited disaster assistance passes Congress

Montana

The U.S. House and Senate passed a scaled down version of disaster assistance included in the Iraq Supplemental Appropriations Bill that appears likely to be signed by the president. The package provides $3 billion nationally for ag producers, including an estimated $15 million assistance for Montana grain producers affected by crop losses from natural disaster and related conditions that occurred in 2005 or 2006 or part of 2007.

Darin Arganbright, Montana Grain Growers Association president says, "We've been working on disaster assistance for three years now. Given the extraordinary cost of fuel and fertilizer, it is catastrophic for a producer to put those kinds of resources into a crop only to have it fail. This assistance will help partially cover that loss."

The quantity loss threshold for eligibility is 35 percent and the payment rate is set at 42 percent of the established crop insurance price. Quality losses will be covered based on actual, local market discounts based on crop sales receipts, or as established by the State Farm Service Agency Committee. A provision that differs from previous disaster programs allows only those producers with crop insurance coverage or that signed up for the Non-insured Assistance Program to be eligible for assistance.

MGGA praised the strong support of Montana's Congressional delegation in this long struggle to provide assistance for producers who suffered from drought related crop losses. Arganbright goes on to say, "Max has been a co-sponsor of disaster legislation in the Senate since we began requesting it. And on the House side, Denny has co-sponsored similar legislation. Montana producers appreciate that our legislators work hard to protect the viability of Montana's number one industry--agriculture. They realize that these dollars turn over many times to support Montana's overall economy."

The MGGA is the primary trade organization representing Montana wheat and barley producers who, by combining their strengths, voices, and ideas, are working to insure a better future for themselves, their industry and the consumer.

Date: 6/14/07


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