BARTOW, Fla., Sept. 24, 2004 - Agriculture Secretary Ann M. Veneman today announced that, in response to President Bush's Aug. 27 directive to USDA, producers of citrus, fruits and vegetables and nursery crops located in Florida counties that have received a Presidential disaster declaration for Hurricanes Charley and Frances will be eligible for special disaster relief.

"President Bush is committed to providing relief to Floridians. We will use existing funds and authorities to quickly launch the Florida Hurricane Agricultural Disaster Assistance in an effort to help growers in their cleanup efforts and to compensate them for lost crops and trees," Veneman said during the announcement here with Florida Governor Jeb Bush and Rep. Adam Putnam. "We are now in the process of determining agricultural damages from Hurricane Ivan in Florida and other states, as well as damages to agricultural production beyond citrus, fruits and vegetables and nursery operations from Hurricanes Frances and Charley. We will continue to provide the same level of response to other hurricane-impacted agricultural sectors as our damage assessments are completed."

Veneman added, "We also will continue to work with Congress to ensure adequate funding for hurricane relief."

In addition to the Florida Hurricane Agricultural Disaster Assistance program, Veneman outlined other available USDA assistance including a disaster food stamp program for more than 15 of the hardest hit Florida counties; more than $54.9 million in replacement Food Stamp benefits issued to 300,000 families; more than 2.5 million pounds of USDA commodities valued at approximately $3 million; and $5 million in special funds for baby food and formula.

To help address housing and infrastructure needs, Veneman announced that Tom Dorr, senior advisor for Rural Development issues, will be meeting with local, county and state government officials in Florida to assess needs and address such issues as housing for farm workers. Housing assistance has been provided for families displaced from USDA-sponsored housing

Sign-up for citrus, fruits and vegetables and plasticulture vegetables under Florida Hurricane Disaster Assistance will begin early October with payments beginning shortly after sign-up. A sign-up date for nursery producers will be announced in the very near future.

Citrus producers will be reimbursed on a per acre basis for each eligible grove. Payments will be based on the severity of destruction as determined by the path of the storms and damage estimates developed by the Farm Service Agency (FSA) in cooperation with the Florida Department of Agriculture. The formula will take into account various levels of losses generally correlating to the distance from the eye of the hurricanes, the average production loss, tree loss, and rehabilitation and cleanup costs. Further explanation is given in the following table.

Citrus Crop Losses for Hurricanes Charley and Frances

• Tier 1:
• Severity of destruction: >75% crop loss and associated tree damage
• Payment rate per acre for insured producers ($): 1,500

• Tier 2:
• Severity of destruction: 50-75% crop loss and associated tree damage
• Payment rate per acre for insured producers ($): 1,000

• Tier 3:
• Severity of destruction: 35-50% crop loss and associated tree damage
• Payment rate per acre for insured producers ($): 600

• Tier 4:
• Severity of destruction: 35-50% crop loss and associated tree damage
• Payment rate per acre for insured producers ($): 100

Payments for eligible fruits and vegetable producers will be based on a per acre basis, and payments for plasticulture vegetable producers will be based on the type of planting application or method installed or completed at the time the hurricanes hit. Plasticulture refers to production practices where the soil has been bedded, fumigated, fertilized, drip irrigation tape installed and plastic-mulch laid. The production cost for plasticulture is much higher than for conventional row-cropped vegetables. Payments for plasticulture losses will be made in three categories based on the relative amount of investment. The following table provides payment details.

Vegetable Crop Losses for Hurricanes Charley and Frances (For Plasticulture & Bare-ground Acreage)

• Plasticulture Planted Acres (with Plants): $2,500 per acre
• Plasticulture Acres With No Planted Acres (no Plants): $2,000 per acre
• Plasticulture Double-Cropped Plastic Acres: $1,000 per acre
• Conventional Row-Cropped Vegetable Acres Suffering Substantial Losses: $250 per acre

Nursery payments will be based on a percentage of inventory loss (exact percentage is yet to be determined) plus a flat rate payment of $250 per acre to address general clean up costs from the hurricanes.

Payments for this assistance are authorized under Section 32 of the Agricultural Act of August 24, 1935, which allows the Secretary to restore producers' purchasing power. Aid to producers under this program is estimated at more than $500 million. The use of these funds will not impair the Department's ability to meet its responsibilities under the child nutrition programs and other food assistance programs. These important nutrition programs are fully financed and all of the entitlements will be provided. Also, funding will continue to be available to purchase surplus agricultural commodities that will be donated to food assistance programs.

Each producer payment is limited to $80,000. Payment rates will be 5 percent less for producers who did not obtain Federal Crop Insurance, which is available from the Risk Management Agency, or on coverage under the Noninsured Crop Disaster Assistance Program (NAP), which is available from the FSA. Similar to a number of other USDA programs, payments will not be available for producers whose adjusted gross income is $2.5 million or higher, unless 75 percent is derived from farming and forestry. In addition, producers will be required to agree to purchase crop insurance for next year's crop. Other conditions will apply. A Federal Register notice will be published providing more program details.

The closing date for sign-up will be announced at a later date, but producers will be given ample opportunity to complete the process. Producers in any of the eligible counties are encouraged to visit their local FSA county office to begin the sign-up process.

The FSA has developed a Web page that provides producers with one convenient location for details on the new disaster assistance, as well as other existing assistance. The Web page can be accessed at http://disaster.usda.gov.

For more information about other disaster assistance, producers should contact or visit local county FSA offices or USDA Service Centers.