August 28, 2002

Sign-up for the $150 million feed assistance program to help cow-calf operators in Nebraska, Colorado, Wyoming and South Dakota begins today at Farm Service Agency offices in those four states. The program will be available through Dec. 31 or until the available funding is exhausted.

The eligible states were selected for this program because current data shows that at least 75% of the pasture and forage crops in these four states is rated as poor or very poor. Without this assistance, severe disruption could come to the beef industry if producers are forced to prematurely market foundation herds of beef cattle due to lack of forage.

To implement this $150 million-program, USDA's Commodity Credit Corporation (CCC) will enter into agreements with feed mills located in the eligible areas, making available existing CCC stocks of nonfat dry milk to be used in the production of livestock feed. Eligible producers will be able to obtain feed at reduced or no cost from the participating manufacturers. Currently, CCC has more than 441 million pounds of nonfat dry milk that is at least two years old or older in storage. In the past, CCC has sold similar nonfat dry milk stocks for animal feed.

Eligible livestock include owned or leased beef cows, replacement heifers and bulls kept for breeding of the foundation beef cow herd. Replacement beef heifers bred to calve during the 2002 calving season are not to exceed 15 percent of the foundation cow numbers. The producer must certify the number of eligible livestock, which must have been owned for three months prior to Aug. 12.

Beginning Sept. 9, FSA will begin providing participating food dealers with the names of eligible producers and their total amount of feed credit. The feed credit, which is $23 per head of eligible livestock, can be used to purchase feed at the participating FSA approved feed dealers or suppliers.

The program will use both USDA's CCC authority and Agricultural Marketing Service's Section 32 authorities. USDA will provide assistance only for future purchases of feed for eligible foundation herds, and not for past expenses. USDA's Farm Service Agency (FSA) will administer the program.

For more information, farmers and ranchers can contact their local Farm Service Agency office or visit http://www.usda.gov.