USDA AUTHORIZES EMERGENCY RELIEF FOR
MONTANA AND NEBRASKA

WASHINGTON, July 23, 2002-Agriculture Secretary Ann M. Veneman today announced the authorization of emergency haying and limited grazing for Water Bank Program (WBP) contract holders in drought-stricken Montana and Nebraska.

"Livestock producers continue to experience severe drought conditions," Veneman said. "We've provided similar emergency relief in North Dakota and South Dakota, and now we are announcing this emergency relief measure to provide immediate help for livestock producers in Montana and Nebraska as well."

Emergency haying on water bank areas in the two states will help producers feed cattle and other livestock. In addition, the Natural Resources Conservation Service (NRCS) also will consider requests to amend producers' conservation plans to allow for limited grazing where consistent with program purposes. These relief efforts will apply statewide to WBP contracts consistent with the Secretary's recent decision on Conservation Reserve Program (CRP) acreage.

The NRCS state conservationists for Montana and Nebraska, in consultation with the State Technical Committee in these states, will establish guidelines for emergency haying and approved grazing on WBP contracts.

Haying is authorized until Aug. 31, 2002, or until disaster conditions no longer exist, whichever comes first. WBP contract payments will be reduced 25% to account for the areas hayed unless the hay is donated. Grazing requests will require a revision of the WBP contract. Payment reductions and other limitations may also apply. Livestock operators should submit applications to their local NRCS office.

The Water Bank Program was authorized in 1971 and NRCS assumed administrative responsibility for it in 1994. WBP contracts provide protection for migratory waterfowl nesting and breeding areas on privately owned ranches and farms. Participants receive annual payments for 10 years in exchange for voluntarily agreeing to preserve, restore or improve the wetland resources.

There are no appropriations for new contracts or renewals in the program, which has essentially been replaced by the CRP and Wetlands Reserve Program.

On March 28, USDA designated the entire state of Montana as a drought disaster area, making Montana farmers eligible for emergency farm loans due to losses caused by the drought this year. On May 1, USDA designated 33 counties in Nebraska as agricultural disaster areas, making farmers and ranchers immediately eligible for USDA emergency farm loans due to losses. Additional information on emergency farm loans is available from local USDA offices or online at http://www.fsa.usda.gov/pas/disaster/assistance1.htm .

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