| July 3, 2008 Dear Friend, Traveling throughout Iowa over the past few weeks, I have been struck by the extent of the damage to crops, land and property from heavy rains and flooding. While it is too early to know the full extent of the damage, it appears comparable to if not worse than in 1993 in many areas. Farmers understandably have a lot of questions – should they replant? What will crop insurance policies cover? Below, please find more information, including links to helpful information on how federal policies, including the new farm bill, will aid Iowa producers. Yours,
Tom AID FOR AGRICULTURAL PRODUCERS AND EMERGENCY FOOD ASSISTANCE AVAILABLE The weather has improved some and floodwaters may be starting to recede in some areas of Iowa, but the questions facing Iowa farmers are still accumulating. Across Iowa, farmers and landowners face a tremendous task of repair, recovery and restoration of the land and conservation practices in the aftermath of excessive rains and flooding. To help remove debris and restore land to productivity, and to repair levees, terraces, waterways and other conservation practices, Senator Harkin worked successfully to secure funding in the just-passed appropriations measure. Iowa farmers and landowners will also find a good deal of new help in the recently passed Food, Conservation and Energy Act, otherwise called the farm bill. The new bill continues the crop insurance program – a strong risk management tool that farmers can rely on during these tough times. Iowa farmers have always been consistent participants in the federal crop insurance program, with 20 million acres of cropland insured out of 24 million acres planted last year. Their commitment to the program should pay off this year. In most years, Iowa farmers face relatively few crop losses, such that over the last ten years, they have the lowest loss ratio of any state in the nation. We know from the flooding and excessive rainfall of 1993, however, that when crop losses are extensive, so are the indemnities from the crop insurance program. In that year, the program paid out indemnities to Iowa farmers more than 450 percent of what was paid in premiums. If we even approach that level this year, given the greater participation and value of premiums paid in the program, Iowa farmers could in aggregate collect well over $1 billion from the federal crop insurance program this year. The bill also establishes a new standing disaster assistance program for crop producers, which will apply to 2008 crop losses. The program determines the payment to individual farmers using the national average market price for the marketing year for the various crops that farmer planted. Under current law, USDA is required to utilize a full marketing year price to do the calculations for payments, but Congress may consider allowing advance payments to be made available. The new bill also provides a Small Business Disaster Loan Program, which is designed to raise the limit on disaster loans, get short-term loans out more quickly, and process loans more efficiently. For more information on these federal programs, please visit the Senate Committee on Agriculture, Nutrition and Forestry. The Iowa State University June 2008 Ag Decision Maker web site contains examples of crop insurance coverage based on planting and replanting options and even provides a summary of the effects on crop insurance coverage. Back to TOP
HARKIN ASKS USDA FOR COORDINATED RESPONSE IN WAKE OF MIDWEST FLOODING/EXCESSIVE RAINFALL In a letter to Agriculture Secretary Ed Schafer, Senator Tom Harkin said that the U.S. Department of Agriculture (USDA) should ensure that farmers affected by excessive rainfall and flooding have accurate and timely information and assistance, and that they should not be penalized in later regulations for decisions and actions they need to take to deal with the pressing circumstances in the aftermath of disaster. Harkin asked for reasonableness and flexibility in crop insurance program rules regarding farmers options where planting was prevented or crops have been lost. The American Farm Bureau Federation's June Market Update estimates that U.S. crops have incurred more than $8 billion in weather-related damages so far this year, with Iowa accounting for at least $4 billion of that overall total. "In the wake of the enormous crop damage done by heavy rains and floods over the last few weeks, farmers in Iowa and adjacent states are scrambling to get the help they need and the best information possible about what their options are," wrote Harkin. "Those farmers have a range of programs, such as crop insurance and disaster assistance, conducted by the Department of Agriculture that they should be able to turn to in these difficult times, but it is important that state and federal officials work together to provide the needed help and make sure that timely and accurate information is provided about potential benefits from these programs and how they might be accessed." Harkin also called upon Secretary Schafer to take a number of actions that would assist livestock, dairy, poultry and egg producers to help them deal with hardships caused by current disaster and economic circumstances. The full text of the letter can be read on the Senate Agriculture Committee's web site. Back to TOP
HARKIN OBTAINS $479 MILLION FOR EMERGENCY CONSERVATION FLOOD EFFORTS Working in his capacity as a senior member of the Senate Appropriations Committee, Senator Harkin was able to obtain $479 million for emergency conservation efforts in the supplemental spending bill that passed Congress on June 26. Of that, $89 million will go toward the Emergency Conservation Program, which provides emergency assistance to producers to respond to conservation damage such as debris or damage to conservation structures. It is administered by the Farm Service Agency of the USDA. This funding will help reduce an existing backlog of $67 million, with an additional $22 million for the present emergency. The bill also included $390 million for the Emergency Watershed Program that provides similar assistance on a matching-fund basis to governmental entities. The Natural Resources Conservation Service estimates an Iowa specific level around $36.5 million. NRCS estimates that more funding will be needed, with preliminary national estimates at around $500 million in total to aid recovery efforts. "The full extent of the damage inflicted on the Midwest by the recent flooding and excessive rainfall is still unknown," said Harkin. "Yet in touring Iowa, it is evident that there is a great deal of pressing conservation needs involving damaged conservation structures and debris removal needs. This funding is a critical first step toward recovery, but I doubt this will be the final word on emergency funding for conservation. As flood damage is assessed I would expect a more detailed determination of conservation needs and there will likely need to further emergency funding provided. "This funding is critical, but it is equally important that USDA have the personnel and the resources needed to swiftly process these applications," concluded Harkin. "I urge Secretary Schafer to constantly evaluate management and bottlenecks facing those seeking funding to recover from this disaster." Farmers wishing to apply for assistance through the Emergency Conservation Program should contact their local FSA office for further details. Back to TOP
IOWA FLOOD AND DISASTER TOUR JOURNAL: HARKIN MEETS WITH IOWA FARMERS; DISCUSSES FLOODING IMPACT ON CROPS Senator Harkin has been touring the state extensively to see firsthand the damage inflicted by the recent flooding and excessive rainfall. Below, please find highlights of his visits to farms and meetings with local farmers to learn about the storm's effects on Iowa agriculture. Friday, June 20, 2008 – Senators Harkin and Grassley took a boat ride with Oakville residents who lost countless acres to the flooding. Louisa County has been declared a presidential disaster area. Several farms were under water and residents were concerned about federal agriculture disaster assistance. Senator Harkin discussed immediate resources to communities affected. "I was stunned by the amount of damage in this area," said Harkin. "It's devastating to see what the excessive rainfall did to this town. It will take time, but we will ensure federal support aids Oakville residents in their rebuilding." Saturday, June 21, 2008 – Senator Harkin and Congressman Leonard Boswell (IA-3) toured the Paul VandeNoord Farm in Marion County to discuss the effects of flooding and excessive rainfall on crops. Marion County has been declared a federal disaster area and the farm had about 500 acres that are under water. Iowa Agriculture Secretary Bill Northey and Iowa Farm Bureau President Craig Lang joined the lawmakers at the event. View a video of Senator Harkin and Rep. Leonard Boswell One of farmer's primary concerns raised at this event was about the decision to replant and whether that decision would be impacted later this year when USDA writes the rule for the new standing disaster program. Senator Harkin vowed in his capacity as Chairman of the Senate Committee on Agriculture, Nutrition and Forestry, to guard against later regulations regarding this programs impact on farmers who decide to replant a crop that would be covered by the disaster program. "This is a critical time on the calendar for Iowa farmers," said Harkin. "Feed is required and we need to have farmers making decisions based on their best economic interest all the while maintaining conservation of this fragile lands." Sunday, June 29, 2008 – Senator Harkin met with farmers over coffee in Oskaloosa. There, farmers told him that the water had been going down and they were hoping to plant soybeans if it didn't rain again. Senator Harkin listened to concerns about federal crop insurance, preventative planting and damage to conservation practices such as private levees and waterways. Harkin discussed how the recently-enacted farm bill and emergency appropriations measure will aid Iowa farmers as they begin to recover from the natural disaster. Monday, June 30, 2008 – Senator Harkin met with farmers in Bloomfield and then toured Keosauqua area farms by van to assess the flooding. Farmers there also had concerns about federal crop insurance, preventative planting and damage to conservation practices. "It was very helpful for me to hear firsthand about farmers concerns and challenges about the soaked fields and flooding," said Harkin. "As the flood waters begin to recede, things are beginning to look up." Back to TOP
HARKIN STAFF LAUNCH FOOD, CONSERVATION AND ENERGY ACT OUTREACH EFFORT Staff for Senator Harkin will launch a tour of the state to inform Iowans of key features of the new farm bill – the Food, Conservation and Energy Act of 2008 – and how the law will benefit them. The tour begins on Monday, July 7, 2008 with events in Marshalltown and Calmar. Harkin staff will be on hand to answer questions about the new bill as well as any questions pertaining to recovery from disaster conditions. Events for the week of July 7th: Monday, July 7, 2008 7:00 pm – Iowa Valley Community College
Continuing Education Conference Center, Room 808
3702 South Center Street
Marshalltown, Iowa Tuesday, July 8, 2008 1:00 pm – Northeast Iowa Community College, Dairy Center
Northeast Iowa Community College
1625 Hwy 150 South
Calmar, Iowa "The Food, Conservation and Energy Act provides advancements across the full farm bill spectrum – maintaining a farm income protection while also providing investments in conservation, energy and nutrition," said Harkin. "It is time to put this sound policy into action, carrying the success of this bill in Washington into the farm fields, rural communities and kitchen tables of Iowa. I encourage all Iowans to come and hear how this bill will benefit our state." Back to TOP 
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