108 | AGRICULTURE, FORESTRY, AND MARINE RESOURCESsupport systems for industrial and communityuse of our restored resources; 6)evaluate and assist in developing policiesregarding recovery of the naturalresources and the resiliency for futurenatural disasters; and 7) to assist small,disadvantaged farmers and communitiesaccess available resources.The Commission recommends acongressional appropriation of $10 millionto fund the assessment, researchand educational efforts.AgricultureRow Crop FarmingThe high fuel costs and crop damageresulting from Hurricane Katrinahas made 2005 the most expensive cropproduction year in <strong>Mississippi</strong> history.Row crop farmers face unprecedentedchallenges, including rising productioncosts and limited access to appropriatefinancing. Farm loans are increasinglydifficult to obtain with low commodityprices, global competition for markets,and urbanization. With these currentfarm economic conditions, the stateshould enact programs to enable farmersto remain competitive in today’s marketthrough tax credits, cost-share programs,low-interest loan programs, and expandedinsurance programs. States suchas Texas, Nebraska, Oklahoma, NorthDakota, Missouri, and many others haveinitiated similar, successful programs. Asa result, the Commission recommends,of the following programs in the designatedPresidential Disaster Areas:■ Low-interest loans and cost-shareprograms. These programs shouldbe available to help with workingcapital, the purchase of machinery,or the acquisition of renewablefarmland. In 1992, the <strong>Mississippi</strong>Legislature passed, but neverfunded, a guaranteed loan programfor beginning farmers. Recognizingthe existing need, the Commissionsupports its funding.■ Expansion of national agriculturalinsurance programs. Expansion ofthe federally backed agriculture insuranceprogram would be helpfulnot only to <strong>Mississippi</strong> but also toother agriculture producing statesby broadening insurance coverage
THE GOVERNOR’S COMMISSION REPORT | 109to a greater number of counties andfood crops, including fruits, vegetables,nuts and others. For crops thatare ineligible for the federal cropinsurance programs, the producers’only option is participating inthe USDA’s Farm Service Agency’sNon-Insured Assistance Program,which provides only minimal orcatastrophic risk protection whenlow yields, loss of inventory, or preventedplanting occur due to naturaldisasters. In the case of disaster, theprogram covers the amount of lossnot greater than 50 percent of theexpected production, and the paymentis based on 55 percent of theaverage market price of the specificcommodity. Only about 50 percentof <strong>Mississippi</strong>’s commercial foodcrop producers are currently enrolled.Other pilot programs shouldbe enacted to cover various otherfood crop producers to allow themto recoup losses.■ Tax credits. In Nebraska, tax creditsare offered for retiring farmerswho lease or sell land to existing oryoung farmers in order to sustainthe agriculture land base already inproduction. Landowners receive arefundable tax credit equal to 5 percentof the amount of rent receivedeach year, for three years, on eachrented asset leased to individuals inthe farm sector. Also, farm incometax credits prompted when farmdiesel and gas reach predeterminedlevels could benefit farmers tremendouslyin years of excessive energyexpense. The <strong>Mississippi</strong> Legislatureshould authorize similar tax creditsfor <strong>Mississippi</strong> farmers.■ Development of alternative fuelplants. With new national opportunitiesin alternative energy, rowcrop farmers could help sustain biodieseland ethanol production plantswithin the state. Technology suggeststhat if on-road diesel fuel contained1 percent bio-diesel, it would utilize250 million bushels of soybeans, increasingprices at least $0.35/bushel,and add more than $900 million tothe gross farm income. Consideringthe increased production of bothforms of fuel and the state’s proximityto large fuel usage markets, productionof these alternative energyforms should be further analyzed bythe state.■ A crop disaster direct payment program.Congress should authorizea supplemental direct paymentto producers in disaster countiesthrough existing farm bill mechanisms.Eligible <strong>Mississippi</strong> row cropfarmers should receive the followingthrough direct payments: $89.2million for cotton farmers, $19.075million for rice farmers, $17.4 millionfor corn farmers, $18 millionfor soybean farmers, and $190,000for grain sorghum farmers. Thiswould provide quick assistance torow crop producers in <strong>Mississippi</strong>.■ Land, Water and Timber ResourcesAct. The <strong>Mississippi</strong> Land, Water &Timber Resources Act is designedto assist value-added, agriculturalprojects in the initial startup costs.Since the program’s inception in2000, nearly $30 million has beeninvested in 41 projects. It has provedinvaluable in creating new and variedopportunities for <strong>Mississippi</strong>farmers and landowners. Extendingand expanding funding for the <strong>Mississippi</strong>Land, Water & Timber ResourcesBoard will stimulate futuredevelopment and provide differentavenues from which our farm sectorhas been absent.■ <strong>Mississippi</strong> Development Authority’sAgriculture Business Loan Program.This program was developed inthe late-1980s to help agriculturalproducers add value to their cropthrough working capital purchases.Prior to the hurricane, the programwas financially stressed. Expansionand increased funding is necessaryto encourage investment. Congressrecently approved $200 million forthe Emergency Conservation Program(ECP) to rehabilitate farmlanddamage caused by natural disastersand $300 million through the EmergencyWatershed Program (EWP) toremove debris, repair structures, andreshape and protect eroded land.PoultryThe poultry industry, <strong>Mississippi</strong>’slargest agricultural industry, faces unprecedentedeconomic and environmentalchallenges. To address them, theCommission recommends:Direct Compensation. Based uponestimates from <strong>Mississippi</strong> State University’sPoultry Science Department,direct compensation through USDAgrant sources is needed to offset the followingcategories of losses:■ Fuel. The Commission and the<strong>Mississippi</strong> Poultry Association estimatea need of $6.32 million tooffset one-time additional costs offuel resulting for electrical powerloss during times of high temperatures.Of the 7,500 poultry housesin the state, 4,388 will likely requirethe assistance. FEMA grants may beavailable to fund this program.■ Income interruption. The Commissionand the <strong>Mississippi</strong> PoultryAssociation estimate needs of$1.61 million in income interrup-
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