The following is a statement from Governor Tim Pawlenty regarding the USDA announcement of $780 million of new, unused and accelerated funds for farmers and ranchers impacted by the 2006 drought, including a new $50 million block grant program for states that were especially hard-hit by the drought, including Minnesota. U.S. Secretary of Agriculture Mike Johanns made the announcement at a press conference this afternoon in South Dakota.

“Livestock is an important part of Minnesota’s agriculture economy and we applaud today’s announcement. Our farmers and ranchers have struggled through this hot, dry summer and we will continue to work with the federal government to provide additional relief.”

The new $50 million program for livestock producers, called the Livestock Assistance Grant Program, will provide $50 million in Section 32 to states in block grant form. States will distribute to livestock producers in counties that were designated as D3 or D4 on the Drought Monitor anytime between March 7 and August 31, 2006. The grants will help livestock producers restore their purchasing power. A list of eligibility criteria and eligible counties can be found at http://www.usda.gov by clicking on the drought spotlight.

On August 8, Governor Tim Pawlenty sent a letter to Secretary Johanns requesting a federal agricultural disaster be declared for 36 Minnesota counties, which would allow drought-impacted farmers and ranchers to receive low-interest loans from the U.S. Department of Agriculture.

Drought conditions have affected the northern two-thirds of Minnesota since early May. Last month was the hottest July in 70 years and the drought has resulted in reduced crop yields in nearly half of all Minnesota counties and difficult conditions for livestock farmers.