Katrina and Drought Cause $2.2 Billion in US Farm Losses
USA: September 21, 2005


WASHINGTON - Hurricane Katrina caused an estimated $900 million in crop and livestock losses in Alabama, Mississippi and Louisiana, the US government said on Tuesday, while Corn Belt drought cut corn and soybeans by $1.3 billion.

 


The US Agriculture Department said its preliminary estimate did not include damage to buildings, fences, or power lines, and did not tally fuel-shortage or long-term costs.

The USDA released its estimates at the same time Congress was considering a new round of post-hurricane aid. The figures will be updated as more information becomes available, the USDA said.

Farm-state lawmakers say the farm sector will get a share of disaster aid and that all 2005 losses from severe weather -- not just Katrina -- must be covered.

In a statement, Agriculture Secretary Mike Johanns said, "USDA is committed to supporting producers throughout long- and short-term recovery."

Katrina first hit Florida, damaging fruit and vegetable crops, before coming ashore near New Orleans on Aug. 29 with winds up to 140 miles an hour and torrential rain.

Louisiana lost 9 percent of its cane sugar crop while Alabama and Mississippi lost acres of cotton. Losses to corn, soybeans and rice appeared modest but harvesting costs will be higher for wind-flattened fields.

Livestock losses from Katrina were estimated at $30 million. An estimated 10,000 cattle were lost due to Katrina, the USDA said.

"Millions of chickens were killed. Producers also lost eggs, poults, and chicken grow-out facilities, which will lead to longer-term economic losses for some producers. Dairy producers discarded an estimated $3 million worth of milk," the USDA said, because power was out and processing plants were closed.

Drought losses were tallied for Arkansas, Illinois, Indiana, Missouri, Ohio and Wisconsin, where farmers endured months of hot, dry weather.

Besides the crop losses, growers have faced lower market prices because Katrina disrupted shipping on the Mississippi River. New Orleans and nearby ports handle 60 percent of US corn, soybean and wheat exports.

Crop insurance will cover some of the losses to Katrina and drought, USDA said. In general, it said, 70-95 percent of cropland in the hurricane area had insurance, as did 60-75 percent of corn and soybean land in the drought area.

 


Story by Charles Abbott

 


REUTERS NEWS SERVICE