Practical steps for farmers affected by Hurricane Katrina

Federal Farm Disaster Assistance Policy

A USDA publication states that “Agricultural-related disasters are quite common. One-half to two-thirds of the counties have been designated as disaster areas in the each of the past several years.” But much federal disaster assistance is ad hoc, and is available only when Congress makes a special appropriation.

This often means that assistance for disasters may become available one, two, even three years after the disaster occurred. This assistance can help compensate farmers for previous losses, but does little to address the immediate crisis and loss of income.

The ad hoc nature of disaster assistance also makes it difficult for employees in the local Farm Service Agency offices that administer the programs to keep track of the programs, much less master their rules and ensure that farmers get the assistance they are entitled to.

When Congressional funding does come, it may come at the expense of funding for other programs, such as the popular Conservation Security Program, as happened last fall.

Whatever the type of farmer, few regard the low-interest Emergency Loans offered by USDA as sufficient to recover from disaster losses. Many farmers have already maximized the amount of debt they can finance, and simply cannot take on any more debt.

Farmers in “niche markets,” such as organic agriculture, may have difficulty obtaining coverage for the premium prices they receive for their products.

Livestock producers, in particular, have few places to turn to address the increased costs when forage and feed crops are affected by flooding or drought, or when animals are lost as a result of natural disaster. Farmers may obtain assistance for grazing losses under the Livestock Assistance Program or the Crop Disaster Program. But they won’t receive compensation under those programs for losses this year, at least not now. Those programs are currently available and funded for losses in the 2003 and 2004 crop years.

September 6, 2005: Leading family farm organizations like Farm Aid, Farmers’ Legal Action Group, National Family Farm Coalition, and Rural Advancement Foundation International (RAFI-USA) have worked together for years to help farmers get the assistance they need. Here they offer their most practical advice for farmers dealing with the aftermath of Hurricane Katrina:

  • Focus first on meeting basic needs of family members.
  • Notify insurance providers (crop insurance, premises insurance, home insurance, flood insurance) of losses as soon as possible. Many crop insurance policies require producers to notify insurers within 72 hours of first discovery of crop damage, though some policies allow waiver of the deadline for good cause.
  • Many crop insurance policies require producers to notify insurers within 72 hours of first discovery of crop damage.

  • After basic needs for food, shelter, etc. have been addressed, try to collect, recover, or recreate documents about the farming operation. Many farmers have planting history, including acreage and yields of crops or production of livestock, on file with the Farm Service Agency. These files may still exist in electronic form. Documenting this year’s farming losses may be more difficult.
  • Feed and seed suppliers, livestock auction-houses, fertilizer and chemical companies, elevators, equipment dealers, and credit card companies may be able to help farmers recreate lost or damaged records from electronic data.
  • When able to do so without compromising health and safety, farmers may want to take photos of damage to the farm. Some people like to use a camera that date stamps the pictures, or to include a current newspaper in the picture.
  • When able to do so without compromising health and safety, farmers may want to take photos of damage to the farm.

  • For partial or total losses, an inspection by a loss adjuster or an appraisal may be needed.
  • Contact FEMA or the state department of labor to apply for disaster unemployment assistance. Some farmers are eligible for disaster unemployment assistance.
  • In some cases, farmers experiencing serious financial losses as a result of a natural disaster will need to give thought to filing for bankruptcy. Changes to Chapter 12, the federal bankruptcy law for family farmers, take effect in mid-October, 2005. Farmers considering bankruptcy may want to consult an attorney to discuss whether to file before or after the changes take effect.
  • Federal assistance is generally available only if the farmer applies for and receives assistance before making the repairs.

  • While farmers usually want to restore their farms to working order as quickly as possible, they should be aware that federal assistance (including cost share under the Emergency Conservation Program) is generally available only if the farmer applies for and receives assistance before making the repairs. Farmers in need of assistance in order to pay for immediate action that was needed to prevent further loss may wish to consult with the Farm Service Agency.
  • Livestock producers and crop farmers should report losses to their local FSA office even if told that no assistance is currently available for their losses. It may help to demonstrate the need for assistance, and may make it easier for the farmer to access any program that is authorized later.