Bush Pledges $50 Million To Offset Ag Drought

The US is in the third-worst drought on record, and July was the hottest since the days of the Dust Bowl. Crop insurance claims this year are projected at $4 billion, and, on Tuesday the Bush Administration pledged $50 million in new USDA funds for drought aid.

The only new money is $50 million earmarked for the Livestock Assistance Grant Program. Cattlemen -- and the drought -- are concentrated in five drought-striken Western Plains states -- hard core "Red" country, politically.

Most news story leads and headlines echoed the USDA press release line of $780 million in aid. However, the bulk of the money, $700 million, is simply an acceleration in already planned payments to cotton, grain sorghum, and peanut farmers. This fund -- "counter-cyclical" aid -- kicks in when prices are low. However, doesn't do much where there is no crop.

The other $30 million is from "unused conservation funds," according to the USDA press release.

$50 Million In Perspective
For context, the US is spending $177 million a day in Iraq. And New Orleans has reportedly received only $117 million in federal money to rebuild infrastructure post-Katrina; $25 billion is the estimated cost. Another $2 billion has been wasted on fraud and no-bid FEMA contracting.

Ignores Wheat and Corn
The drought and record heat have decimated corn and wheat fields. According to the National Agricultural Statistics Service, in South Dakota the winter wheat crop is almost half last year's size and alfalfa hay "is expected to be down by 35 percent."

And yet, "[t]he disaster relief package announced Tuesday by (USDA) will provide no relief to wheat growers," according to the National Association of Wheat Growers.

The Administration opposes a Congressional plan of $4 billion in drought aid.

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