Legislative Issues & Policies - Federal Emergency Disaster Relief for Horses

Introduction

The horse industry is hurt by floods, droughts, ice storms, fires and hurricanes just like other livestock industries.  But, until a few years ago, very few horse owners were eligible for the various forms of federal emergency assistance available to other livestock producers.  While producers of horses kept for the production of food or fiber on the owner’s farm have been eligible for federal emergency assistance, producers of other horses were not. 

This was unfair.  If a breeding farm or ranch loses horses because of a natural disaster, it has lost its crop and production capability and has nothing to sell or produce additional foals.  When grazing lands are lost because of flood or drought and feed must be purchased for horses, an owner might have to sell horses at distressed prices because he could no longer afford to provide for them.  While other livestock producers are eligible for low-interest emergency loans following a disaster, horse breeders were not. Under all these circumstances, federal emergency funds would assist horse owners in keeping their horses and operations viable.  

Legislation Enacted

On May 22, 2008 Congress overrode Presidents Bush’s veto of the Food, Conservation, and Energy Act of 2008, commonly known as the Farm Bill, and enacted it into law.  The new Farm Bill includes two provisions beneficial to horse breeders.  The new law makes “equine farmers and ranchers” eligible for the first time for emergency loans following a disaster by specifically including them within the group of producers eligible for these low interest loans.  The Farm Bill also includes a new disaster assistance program that will provide relief funds to farmers and ranchers who suffer losses because of disaster.  Horses are specifically included within the definition of livestock eligible for these relief programs. 

2005 Amendments

In 2005, Senators Mitch McConnell (R-KY), Jim Bunning (R-KY) and Blanche Lincoln (D-AR) were able to pass legislation making horses eligible for various federal emergency assistance programs under the limits enjoyed by other livestock and crop producers.  Importantly, this law repealed the language in the outdated Agricultural Act of 1949 limiting emergency funds to horses “used for food or fiber or the production of food of food or fiber.”  This limitation had been a major stumbling block to making horses eligible for federal assistance.

But these changes in the law did not provide complete parity for the horse industry since horse breeders were not eligible for federal emergency loans.  Therefore, additional clarifications had to be passed for emergency loans.

2007 Farm Bill

The various federal programs that provide relief to livestock and crop producers following a disaster are a hodge-podge of programs that are confusing and require specific appropriations.  One of the expressed goals of Congress in the 2007 Farm Bill was to pursue permanent agricultural disaster authority.  This was an opportunity for the horse industry to maintain its parity with other livestock industries with respect to federal disaster assistance and extend it to apply to emergency loans.

The industry worked hard to have language included in the Farm Bill to clarify that horse owners involved in production agriculture are eligible for federal assistance, just like other livestock producers. Commercial production agriculture should include horse owners involved in breeding, along with their stallions, mares, and foals, yearlings and horses being prepared for sale or use.  It would not include owners of horses being used for racing, showing, recreation or pleasure.  This comports with the purpose of the federal protections for other livestock producers since the USDA’s overall emergency programs are limited to those involved in production agriculture.  They are not available to anyone who simply owns, uses, shows, or exhibits livestock, whether the animal is a cow, pig, or horse. 

Congressional Action

House Farm Bill.  The House Agriculture Committee reported out its version of the 2007 Farm Bill last Spring with a provision that provided for a permanent disaster program.  This provision included horses maintained for commercial use as part of a farming or ranching operation within the definition of eligible livestock.  Unfortunately, the Agriculture Committee was not able to secure funding for this permanent program and it was not included in the final House farm bill, which passed the House on July 27, 2007. 

Senate Farm Bill.  On December 14, 2007, the Senate passed its version of the Farm Bill on a vote of 79 to 14.  The $286 billion bill included the two provisions that would make horse owners involved in production agriculture eligible for additional federal programs that are administered by the U.S. Department of Agriculture in the aftermath of a natural disaster.  Senators McConnell and Bunning were critical to the inclusion of horses in these two provisions. 

The first provision would make horse breeders eligible for federal emergency loans for the first time by including “equine farmers and ranchers” within the class of eligible producers. 

The second provision instituted a permanent disaster relief fund that would provide payments to farmers and ranchers who suffer losses in areas that are declared disaster areas by USDA.  This provision specifically included “horses” within the definition of livestock eligible for the program.

Conference Committee Meetings

A Conference Committee that included members of the House and Senate met for several months to resolve the differences between the two versions of the bill.  After months of negotiations, the Conference Committee agreed to a final Farm Bill that included the changes to the federal disaster assistance programs for horses described above.

President Bush vetoed the Farm Bill because of the overall cost, but Congress overrode his veto.  The disaster assistance provisions for equine farmers and ranchers are now law.

AHC Position

The AHC has been working for some time on achieving parity for horse breeders with other livestock producers.  The AHC supports the disaster relief provisions in the new Farm Bill.