February 18, 2000

Texas Farm Bureau President Donald Patman told members of the National Drought Policy Commission in late January that the combined effect of the 1996 and 1998 droughts caused more than $4 billion in direct losses to Texas farmers and ranchers with a direct impact on the state’s economy close to $11 million.

Stepping forward in his first official function as TFB president, Patman said the primary role of the federal government during extended drought periods is that of providing adequate funding in a timely manner to help with the emergency situation as well as making necessary adjustments to help offset the impact.

Among TFB’s recommendations to improve drought policy, as laid out by Patman, were the following:

• Provide adequate funding for the Emergency Livestock Feed program, as well as some form of water transportation assistance; and the establishment of a revolving emergency fund, to be replenished and available without special congressional action and appropriations.

• Allow hay from CRP land to be sold/moved across state lines, to producers, and allow drought-affected producers to ship livestock to areas where CRP land is available, to be grazed.

• Exempt capital gains on the forced sale of livestock due to drought.

• Implement an emergency "refundable tax credit" that would utilize a farmer’s IRS schedule F income from prior years, to provide additional income at a critical time (all commodities).

• Develop an effective risk management insurance program for producers of all commodities, which is critical for the long-term stability of agriculture.