6. Revision of current programs to meet long-term needs and better coordination of these programs.

7. Establishment of an agency or division of USDA designed to implement, administer and monitor intermediate disasters affecting food and fiber production.

8. Alternative employment for farmers and ranchers unable to continue their operations during the drought. Jobs could possibly be made available that would improve conservation practices through the planting of additional windbreaks and water supply programs.

These are just a few of the alternatives that my Subcommittee will examine. Obviously, other options should also be reviewed.

I am continuing to work closely with the South Dakota Department of Agriculture, South Dakota farm organizations, as well as the members of my Committee to help me mitigate the affects of the drought.

Every American has a stake in the outcome of these hearings and the legislation which will be produced. Some climatologists have predicted that we are entering another dry cycle and if we refuse to prepare for those conditions, our ability to produce food may be seriously jeopardized.

[From Rapid City Journal, June 23, 1976]

INCOME LOSS FROM DROUGHT STAGGERING

PIERRE (AP).-South Dakota has lost about half of its wheat crop and $150 million in farm income because of the spring drought, the state Agriculture Department said Tuesday.

At current market value of $3.50 per bushel, the loss would be about $150 million, and would cut the harvest to about 42.5 million bushels compared to last year's 63.3 million bushels and an estimated yield this year of 85 million bushels. The $150 million figure applies only to wheat crop losses.

The loss estimate was made after a survey last week by the U.S. Agricultural Stabilization and Conservation Service, showing 35 to 50 per cent of the wheat and other small grains damaged beyond repair.

"I checked again Monday and, unfortunately, the best estimate now is that the 50 percent loss almost certainly is closer to actual losses than 35 per cent, and in some local areas the loss could be 75 per cent or even complete," said Larry Venner, assistant to Agriculture Secretary Robert Duxbury.

He said similar losses in harvest can be expected in other small grain crops. "It's more difficult to estimate livestock losses right now. Much of that loss really won't be felt for a year or two across the state, when farmers have sold their herds and those cattle are no longer on the tax rolls," Venner said.

Production emergency loans are now available in 56 South Dakota counties declared as disaster areas. Farmers may apply for 5 per cent loans equivalent to their losses.

The South Dakota Farmers Union Tuesday warned that the drought could reduce the number of farms. In a survey of 21 counties in the northeast, farmers expressed a deep concern about coping with the drought.

The potential loss of cattle herds was a major concern to the farmers answering the survey. Many said they would try to replant some fields for hay, but only if it rains now and if seed is available.

"The young farmer who generally doesn't have the financial reserve to see him through this kind of disaster will be the hardest hit," said Ben Radcliffe, president of the farm organization.

In another survey, the state Crop and Reporting Service said Monday that corn was holding its own against the drought, but needed rain soon to develop properly.

Rainfall is four to seven inches behind normal in the central and eastern portions of the state. Farmers are cutting some small grains for hay or silage, pasturing some or in some cases reworking the field and planting a forage crop, the service said.

Residents of Sioux Falls felt the first impact of the drought Tuesday as they turned on showers and made morning coffee.

Water purification engineer Tom Molohon said the city was forced to use water from a standby lake which had algae. It was the first time in 10 years the lake was used to supply water. The lake supplied four million to six million gallons Tuesday. He said the water was safe, but the smell and taste were bad. Chemical treatment was expected to reduce the odor.

Sioux Falls restricted lawn sprinkling to the hours between 6 a.m. and noon and police said the restriction would be enforced.

Sen. James Abourezk announced Tuesday that the U.S Agriculture Department had opened the 46,000 acres of waterbank program land in South Dakota to grazing and hay cutting in drought areas.

Farmers must first contact their county Agriculture Stabilization and Conservation Service (ASCS) office before turning their livestock onto the land or cutting the hay. Grazing can begin July 1 and haying on July 15.

Producers may sublet haying or grazing to other producers who can establish a need. Any use of the acreage will mean the loss of a farmer's 1976 annual waterbank payment.

FARMERS' TOTAL LOSS ESTIMATE "PROBABLY LOW"

PIERRE (AP). - Gov. Richard Kneip says an early estimate that South Dakota farmers lost $250 million due to total drought impact probably is low. The estimate was used when Kneip asked for presidential disaster emergency declaration.

"If anything that figure is low, considerably low," Kneip told a news conference Wednesday.

"Actual losses will depend on how long the drought lasts. Some parts of the state could still get corn if rains come."

He said many cattlemen are selling their breeding herds rather than pay excessive prices for hay.

A federal program is available to subsidize hay transportation, but Kneip said it pays only $27 per ton.

"Some hay is selling for $100 a ton, and even with a $27 transportation cost taken away, the price is still high. It can still bankrupt the rancher," he said. The governor said he doesn't expect the drought and farm income losses to affect state government revenue significantly for 10 to 12 months.

Kneip said the state is gathering information of problems cities are having with their water supplies.

[From Daily Republic, June 23, 1976]

INCOME DOWN $150 MILLION-HALF OF WHEAT CROP LOST

PIERRE, S.D. (AP).—South Dakota has lost about half of its wheat crop and $150 million in farm income because of the spring drought, the state Agriculture Department said today.

At current market value of $3.50 per bushel, the loss would be about $149 million, and would cut the harvest to about 42.5 million bushels compared to last last year's 63.3 million bushels and an estimated yield this year of 85 million bushels. The loss estimate was made after a survey last week by the U.S. Agricultural Stabilization and Conservation Service, showing 35 to 50 per cent of the wheat and other small grains damaged beyond repair.

"I checked again Monday and, unfortunately, the best estimate now is that the 50 percent loss almost certainly is closer to actual losses than 35 per cent, and in some local areas the loss could be 75 per cent or even complete," said Larry Venner, assistant to Agriculture Secretary Robert Duxbury.

He said similar losses in harvest can be expected in other small grain crops. "It's more difficult to estimate livestock losses right now. Much of that loss really won't be felt for a year or two across the state, when farmers have sold their herds and those cattle are no longer on the tax rolls," Venner said.

Production emergency loans are now available in 56 South Dakota counties declared as disaster areas. Farmers may apply for 5 per cent loans equivalent to their losses.

The South Dakota Farmers Union today warned that the drought could reduce the number of farms. In a survey of 21 counties in the northeast, farmers expressed a deep concern about coping with the drought.

The potential loss of cattle herds was a major concern to the farmers answering the survey. Many said they would try to replant some fields for hay, but only if it rains now and if seed is available.

"The young farmer who generally doesn't have the financial reserve to see him through this kind of disaster will be the hardest hit," said Ben Radcliffe, president of the farm organization.

In another survey, the state Crop and Reporting Service said Monday that corn was holding its own against the drought, but needed rain soon to develop properly.

Rainfall is four to seven inches behind normal in the central and eastern portions of the state. Farmers are cutting some small grains for hay or silage, pasturing some or in some cases reworking the field and planting a forage crop, the service said. Residents of Sioux Falls felt the first impact of the drought today as they turned on showers and made morning coffee.

[From the Minneapolis Tribune, June 22, 1976]

MINNESOTA, DAKOTAS SUFFER 50-PERCENT CROP LOSSES

(By Warren Wolfe)

South Dakota-like Minnesota and North Dakota-probably has lost half its small grains because of the worst spring drought in the region's history, the South Dakota Agriculture Department estimated Monday.

A county-by-county survey conducted last week by the U.S. Agricultural Stabilization and Conservation Service (ASCS) in South Dakota indicates that 35 to 50 percent of the wheat and other small grains has been damaged beyond repair, said Larry Venner, administrative assistant to state Agriculture Secretary Robert Duxbury.

"But the total loss is about 50 percent," Venner said. Based on average wheat `prices of $3.50, the loss is about $149 million to South Dakota farmers. If the loss estimate is correct, it will cut the harvest to about 42.5 million bushels of wheat. Last year South Dakota produced 63.3 million bushels of wheat. North Dakota produced 26.4 million bushels of wheat and Minnesota produced 87.8 million bushels of wheat.

"In Minnesota, crop losses continue to mount from dry weather, particularly in the central, western and southwestern parts of the state," State Climatologist Earl Kuehnast said yesterday.

"Minnesota farmers have about a 15-percent chance of getting normal yields on the crops that remain in the fields," he said.

"What we need is a good four- or five-inch soaker, with another inch or so of rain each week until harvest," he said. "That is about double normal rainfall for the rest of the season, and historically speaking, our chances are about 15 percent. That's not much to gamble on."

"Last week's rainshowers were confined largely to the northeast and eastern edges of the state," he said. "The real drought areas weren't helped at all. Even if you get an inch of rain it's not going to soak down very far," he said.

"The rain will help crops somewhat in the northern half of the state, but the critically dry west-central and southwestern districts did not receive enough moisture to improve prospects substantially," the state-federal crop and livestock reporting service said in its weekly weather and crop report yesterday.

"Last week's rain should improve kernel development of late-planted small grains in the important Red River Valley. However, yields will still be below normal as many small grain fields are too far advanced to fully utilize the moisture," the report said.

"Yields in (the west-central and southwestern) areas will be poor. Stands are so short that many farmers expect to combine small grains without swathing. In areas where livestock forage and hay supplies are low, some small grain fields are being reworked in order to plant emergency forage-type crops," the report said.

"More rain will be needed soon for corn because it is entering the rapid-growth stage where moisture requirements are much greater," the report said. Seventy percent of the first cutting of hay is complete, but yields are poor throughout the

state.

Last week 40 counties in Minnesota, 53 in South Dakota and 18 in Northwestern Wisconsin received emergency status, opening the way for federal aid in bringing hay for livestock to Minnesota from other states.

On Friday, Minnesota asked that 15 additional counties be added to that list. If approved, that will give emergency status to nearly all counties west of the metropolitan area, from Iowa to Canada.

"More than 14,000 tons of hay in Minnesota, Wisconsin and North Dakota are available for sale to farmers in the extremely dry areas of the state," University of Minnesota agriculture economist Paul Hasbargen said yesterday.

"Much of the hay is available for about $1.50 a bale, or $60 to $70 a ton, compared with $43 a ton a month ago," he said. Last year Minnesota produced about S million tons of hay.

State Agriculture Commissioner Jon Wefald has estimated that Minnesota farmers have lost about half the first cutting of hay, half the small grains, 20 percent of the corn and 5 percent of the soybeans because of drought.

[From the Christian Science Monitor, June 29, 1976]

U.S. DROUGHT MAY PUSH UP BEEF PRICES

(By Judith Frutig)

Drought is following the sun across the U.S. food belt. It has brought parched conditions through most of the upper Midwest, across Nebraska into eastern Colorado, and on to California-with higher beef prices at stake.

Because of scorched pastures, low hay storage, and the rising costs of feed grain, a growing number of hard-pressed farmers and ranchers are marketing what are normally considered underweight cattle.

For now, meat prices are relatively low. Choice beef, sold for $1.52 a pound at this time last year, is currently selling for $1.41.

With spotty rain forecasts, a continued dry spell would increase-in the short run-the supply of beef in the nation's supermarkets and temporarily hold down the price of beef.

But over the long haul, if farmers and ranchers sell off their supplies early, a continued drought would shrink the beef supply-possibly even cause another beef shortage similar to the shortage of 1973-and boost beef prices.

But despite the bleak picture in some parts of the West and Midwest, the agriculture situation in other areas remains good.

So far, says economist Robert Reierson, the major portion of the food belt where the bulk of beef cattle are raised remains in good condition including central Texas, Oklahoma, Missouri, Iowa, Illinois, Indiana, and Ohio. Mr. Reierson is employed by Monfort of Colorado, the largest cattle-feeding and slaughtering company in the United States.

The corn prospects for the year are good as well. Last year, U.S. farmers grew and sold 5.8-million bushels of corn. This year, if the weather holds, U.S. estimates show a 6-to-6.5-million-bushel corn crop.

Industry experts say, summer drought conditions notwithstanding, the number of cattle available for the U.S. food market has been dropping off for three years. Since 1973, when 132 million cattle were on hand in this country, the total number has decreased by 4 million a year. Even without drought, the number of cattle would have dropped again this year, says Mr. Reierson.

Accelerated liquidation of cows and heifers-either because of a shortage of roughage or drought-Mr. Reierson predicts, would mean spiraling beef prices through 1978.

"We are looking at two factors," he said: "what happens to grass and hay production this summer; and what happens with corn production."

In the dry portions of the Midwest, where dust storms gusting up to 80 m.p.h. have uprooted crops and turned over trailer trucks, the corn stands only calfhigh, half of what is should be. Hardest hit are Minnesota farmers who already have lost a third of their grain crop-valued at $1 billion-to the worst spring drought in that state's history, according to Minnesota Agriculture Commissioner Jon M. Wefald.

In North Dakota, assistant extension director Wayne Colberg said pastures and ranges are "hurting worst. . . a lot of cattle are moving."

In South Dakota, plant scientist Lyle Derscheid says the culling of poor producers is already complete. Now, he says, farmers are selling good cows and cowcalf pairs. "I can't remember when it looked any worse," he added.

In Wisconsin, assistant Agriculture Secretary Arthur Kurtz estimates that nearly two-thirds of the farmers in the parched northwest corner of his state are in critical need of livestock feed.

Here in the West, with the ground sere and the sky cloudless, cattle weighing 400 to 500 pounds that ordinarily would be fattened for another five months are being slaughtered-sometimes at half their normal market weight. Farmers cite an immediate crisis in hay and forage. Agriculture experts say severely curtailed grain crops are inevitable, no matter what the July weather brings.

To ease the effects of the drought, farmers and government officials are beginning to take strong measures:

-The governors of Minnesota and Wisconsin have asked President Ford to designate specific emergency areas as eligible for hay and feed grains at federal expense. In Minnesota, Gov. Wendell R. Anderson has asked the President to designate 40 counties as disaster areas; Wisconsin Gov. Patrick J. Lucey has requested the same status for 13 counties. Similar requests are also being considered by the governors of North and South Dakota.

-In Washington, Minnesota's Democratic Sen. Walter F. Mondale and Hubert H. Humphrey have urged President Ford to declare the state a major drought area. In addition, the senators have requested a federal emergency program that would authorized a subsidy of up to $20 a ton to import hay from Montana and Wyoming.

-North Dakota, South Dakota, and Minnesota have eased restrictions on roadside mowing of hay and grazing along state roadways.

-Several upper Midwest states have tried cloud-seeding to end drought with

uncertain results.

STATEMENT OF HON. JOHN A. Knebel, Under SECRETARY, U.S. DEPARTMENT OF AGRICULTURE

Mr. Chairman and members of the committee: Thank you for providing this opportunity to discuss the emergency and disaster programs which are available to farmers in the United States.

There are laws and regulations on the books which provide for virtually every conceivable agricultural disaster. Any new disaster coverage would almost certainly duplicate and overlap some programs now in existence. Further, it should be noted that all Agriculture agencies respond to mission assignments by the Federal Disaster Assistance Administration (FDAA) when a Presidentially declared disaster or emergency occurs. These programs are administered through nine different agencies of USDA.

Allow me to discuss briefly some of the programs:

The Agricultural Marketing Service is able to petition the Interstate Commerce Commission to grant authority to railroads to reduce freight rates on short notice for shipments of needed commodities into the affected area.

The Animal and Plant Health Inspection Service is authorized to help prevent, control or eradicate emergency outbreaks of plant and animal pests and diseases. The Extension Service may offer practical information to affected farmers about alleviating disaster damage, clean up, sanitation, insect control, emergency food preparation, recovery and renovation of damaged equipment and property. The Extension Service, with offices in every farm county, can also give guidance to disaster stricken farmers who seek aid available from other agencies.

The Food and Nutrition Service may establish special eligibility standards for emergency food coupon allotments in the case of certain disasters.

The Forest Service, has the authority to carry out fire protection and rescue work and to detect, prevent and control emergency outbreaks of diseases and harmful insects.

The Rural Electrification Administration can provide loans and technical assistance in restoration of telephone and electric service after a disaster.

The Soil Conservation Service may provide emergency assistance under Section 216 of the Flood Control Act of 1950. This includes technical and financial assistance needed to safeguard life and property from future floods and the products of erosion in watersheds suddenly impaired by a natural disaster. In addition, technical assistance is provided by SCS under their regular operations program to landowners in drought and flood areas to give immediate relief from wind and water erosion damages.

The Federal Crop Insurance Corporation makes restitution for crop losses to farmers who have subscribed to the insurance.

The Farmers Home Administration (FmHA) which has authority to provide emergency loans is the most utilized agency. These loans are made to farmers and producers to help re-establish farming operations following disasters. Loans based on actual losses are repayable in their entirety at five percent interest. Loans for renewed operations are made at rates prevailing in the private market for comparable credit. With FmHA help, the farmer can repair or replace damaged property and supplies, pay crop production expenses and even pay debts owed to other creditors.