Drought, Water Restrictions, and Sources of Assistance

The current drought has created havoc in agriculture sectors of Virginia’s economy and growers of ornamental crops are no exception. A few widely publicized examples of the impacts of severe water shortage on nursery operations are just the tip of the iceberg. Irrigation ponds are extremely low. Alternate sources from wells and streams are showing signs of increased sedimentation, salt build-up, and slow recharge. Between July 1 and August 15, 2002, more than 2,200 private well failures were reported in the Commonwealth. Normally, about twelve failures would have been expected during that time.

Statewide water restrictions provide exemptions for the irrigation of crops in production, including ornamental crops. But restrictions remain on residential and commercial landscapes and this feeds back to slow sales and the maintenance of high inventories in wholesale nurseries, all needing water. Furthermore, exemptions from water restrictions are meaningless if growers can’t access enough water to apply to their crops. See the related articles on Managing Drought in Nurseries and Managing Drought in Landscapes. What follows in this article is an update on (1) water restrictions and exemptions to them as specified by Governor Warner’s Drought Task Force; (2) a description of the programs available to provide financial assistance to nursery growers in drought disaster designated areas.; and (3) an update on counties declared drought disaster areas, and those that have applied for this designation.

Water restrictions and exemptions

Governor Warner’s Executive Order #33 specifies that any person or household who utilizes surface waters or ground water in most areas of the state (except some areas of Northern Virginia, Southwest Virginia and the Eastern Shore) refrain from watering lawns, washing vehicles, filling swimming pools. Exemptions in the original Order #33 were granted to golf courses, who were restricted from watering fairways, but were allowed to water tees and greens between the hours of 8:00 pm and 8:00 am only, commercial car washes (including dealership and rental services, but not company fleet maintenance facilities), and pools used by health care facilities for patient care and rehabilitation. The Governor appointed David Paylor, Deputy Secretary of Natural Resources as drought task force coordinator and empowered him to provide additional exemptions, or additional restrictions, “for good cause” and “in the spirit of being minimally intrusive on business and individual citizens’ investments.” Industry groups, including the VNLA and the Virginia Green Industry Council have provided additional input to the drought task force that recommended the following additional exemptions, and were approved by the Drought Coordinator:

New and refurbished lawns and fairways may be watered for a period not to exceed 30 days.

Golf course tees and greens can be moistened (not irrigated) during the day by hand watering or syringing to keep them cool.

New or repaired swimming pools may be filled as needed to maintain the structural integrity of the pool, and indoor pools may be filled as necessary to ensure swimmer health and safety.

Executive Order #33 does not apply to athletic fields, and does not apply to the production of commercial agricultural crops, including ornamental plants.

Director of the Department of Environmental Quality was also empowered to allocate ground water and surface water resources and to restrict any withdrawals based on the adequacy of the resource to meet necessary uses. This allows the DEQ to restrict the drawing of water by individual users and supersedes the statewide restrictions.

The Drought Coordinator has the only authority to issue exemptions. Requests for exemptions should be made in writing, explaining the situation and the specific exemption requested. They should be sent to Terry Wagner at (804) 698-4032 (fax) or emailed to tdwagner@deq.state.va.us. Individual situations not addressed by these broad exemptions may be addressed by local governments.

Programs available for financial assistance to growers affected by drought and/or heat in counties designated as drought disaster areas.

Nursery crop insurance is available in all counties through the Federal Crop Insurance Corporation (FCIC). Information about this program, including an agent locator, eligible plant list, and coverage options can be found at:

http://www.rma.usda.gov/aboutrma/fcic/

This program covers all field-grown and containerized nursery plants that are on the Eligible Plant List, meet all the requirements for insurability, and are grown in an appropriate medium using acceptable production practices. Stock plants or plants grown for sale as Christmas trees are NOT insurable under this program. Eligible crops are covered for:

Adverse Weather Conditions (including wind, hurricane, and freeze*)

Fire (provided weeds and undergrowth are chemically or mechanically controlled)

Failure of the Irrigation Water Supply (if due to an insurable cause of loss)

Delay in marketability of plants resulting in reduced plant value (if due to an insurable cause)

Wildlife

Plant damage or losses in value as a result of the following situations are NOT covered:

Disease or Insect infestation (unless effective control measures for the infestation do not exist)

Inadequate power supply (unless such inadequacy is a result of an insurable cause of loss)

Inability to market your nursery products due to quarantine, boycott, or buyer refusal

Collapse or failure of buildings/structures (unless caused by an insurable cause of loss)

Failure of plants to grow to an expected size due to drought.

All of the following programs are administered through your local U.S. Farm Service Agency representative. The first step for applying is to contact your local Farm Service Bureau. These are located in most counties in Virginia. To find the office nearest you, go to the web site:

http://oip.usda.gov/scripts/ndisapi.dll/oip_agency/index?state=us&agency=fsa

or call the state office for the nearest local office:

Virginia State FSA Office

1606 Santa Rosa Rd.

Culpeper Building, Suite 138

Richmond, VA 23229

Phone: 804-287-1503

Emergency Conservation Program (ECP). This program is most often used to help farmers provide water to livestock during drought emergencies. This program is also available to commercial orchards, vineyards, and commercial nurseries that grow ornamental container plants on site for more than one year. This program is NOT currently available to greenhouses. This program is NOT dependent on your county being included in drought disaster designation. Since January 2002 there has been 54 counties in Virginia approved for the Emergency Conservation program (ECP). A total of $4 million has been released so far. An additional 2 counties have been submitted to Washington DC for approval. To be eligible, the applicant must have suffered a natural disaster that created new conservation problems, which, if left untreated would impair or endanger the land, materially affect land’s productive capacity, represent unusual damage unlikely to occur frequently in the same area, and be so costly to repair that Federal Assistance is required to return the land to productive use. The primary benefit to nursery growers of this program is that you may be eligible for assistance in upgrading irrigation facilities (digging new wells, running irrigation pipe) to alleviate drought damage to crops. The primary drawback is that water supplies are critically low NOW, and there is often a 2-3 month backlog on well drilling orders. Therefore, once your application for assistance is approved, and funds made available, it may still be a challenge to provide assistance to your crops. However, this program is a valuable asset that is seeing more use, and it is nearly impossible to know if you are eligible unless you visit the Farm Service office to apply!

Other emergency conservation measures may be authorized by county FSA committees with the approval of the State Committee and the Agency's Deputy Administrator for Farm Programs. Eligibility for ECP assistance is determined by county FSA committees, based on individual on-site inspections, taking into account the type and extent of the damage. Cost share assistance of up to 64 percent is available. Requests for cost-sharing of $20,000 or less per person per disaster are evaluated and approved by county committees. State FSA committees must approve all applications for assistance for more than $20,000. Applications for amounts greater than $62,500 must be approved by the Deputy Administrator for Farm Programs. Technical assistance for ECP may be provided by the USDA's Natural Resources Conservation Service (NRCS).

Noninsured Crop Disaster Assistance Program (NAP). This federally funded program covers noninsurable crop losses and plantings prevented by disasters. Eligible crops include commercial crops for which catastrophic level of crop insurance is unavailable. Also controlled environment crops such as mushrooms and floricultural crops, specialty crops (honey and maple sap), and “value loss” crops (aquaculture, Christmas trees ginseng, ornamental nursery and turfgrass sod). This program is designed for crops that are not insurable through other programs, and must be applied for in advance of the crop being planted. This may be a particularly good option for Christmas tree growers, whose crops grown for cut trees are not eligible for the federal program (FCIC). Deadline for sign-up for coverage of 2002 losses was way back in very early 2002. Sign up for 2003 coverage ended September 1, 2002. You may still apply for this coverage for 2004 crops, the deadline for this is February 15, 2003. Applications for this program are filed with your local Farm Service Agency office. The cost for this program is $100 per crop per farm with a maximum of $300 cost per farm per county. If you grow in more than one county, the maximum cost is $900 per year. Given that cost structure, it is a very inexpensive way for growers of multiple species to provide some catastrophic coverage. Because ornamental crops are considered “value loss” crops (meaning that usually there is not a total loss of a crop, but some diminished farm gate value), claims filed with this program may provide only partial recovery of your loss. Still, some recovery is better than none.

Emergency Loan Assistance (EM) This program is activated when your county is included as a designated drought disaster area. It is a 3.75% loan program to producers who can document a 30% loss in production, and an inability to obtain credit from other sources (for whatever reason). This program is also administered through your local Farm Service Agency office, and individual cases are judged according to their merits that may not appear to meet the eligibility requirements as stated. Emergency loan funds may be used to restore or replace essential property, pay all or part of production costs associated with the disaster year, pay essential family living expenses and/or reorganize the farming operation; and refinance certain debts. Producers can borrow up to 100 percent of actual production or physical losses, to a maximum amount of $500,000. Applications for emergency loans must be received within 8 months of the county’s disaster or quarantine designation date. As you can imagine, there are many conditions for this assistance, and one source told me that the program is active, but has little funding right now. This seems incredible and the situation may change soon. Again, please contact your local Farm Service Agency office about eligibility and assistance available through this program.

There is legislation already passed by the US Senate and currently on hold in the House of Representatives, and in Appropriations Committees that would greatly increase the amount of funding available to these programs. The Senate version even makes much of this money available as GRANTS instead of loans! The Secretary of the USDA, Ann Venemen also announced increased funds available through the EQIP program which is administered by the Natural Resource Conservation Service. These funds go toward conservation measures implemented on farms and may include many measures that would enhance our future preparedness for drought emergencies. More information about this program can be found at:

http://www.nrcs.usda.gov/programs/farmbill/2002/products.html
or contact your local NRCS office.

What follows are current disaster designation status for counties in Virginia. This information changes rapidly. Initial requests for this designation are made by county Boards of Supervisors to the Governor, so check locally for the most recent information.

DROUGHT DESIGNATIONS

FISCAL YEAR 2002

DESIGNATION # PRIMARY CONTIGUOUS COUNTIES STATE

S1618 Goochland Chesterfield Henrico Cumberland VA

Fluvanna Hanover Louisa

Powhatan

S1626 Prince Edward Amelia Appomattox Buckingham VA

Charlotte Cumberland Lunenburg

Nottoway

S1653 Louisa Albemarle Greensville Nottoway VA

Cumberland Amelia Hanover Orange

Buckingham Appomattox Lunenburg Powhatan

Fluvanna Dinwiddie Mecklenburg Nelson

Brunswick Prince Edward Goochland Spotsylvania

S1661 Brunswick Halifax Pittsylvania NC

Carroll Henry Southampton Grayson Mecklenburg Patrick

Grensville

S1665 Bedford Albemarle Alleghany Amherst VA

Orange Augusta Bath Botetourt

Rockbridge Campbell Culpeper Franklin

Greene Louisa Madison

Nelson Pittsylvania Roanoke Spotsylvania

SEVERE STORMS / FLOODING

M1407 Lee Wise KY

M1408 Lee Scott TENN

M1409 Fairfax Prince William MD

Westmoreland Stafford

King George

M1410 Bland Buchanan WVA

Giles Tazewell

M1414 Buchanan Wise

Dickenson

TORNADO

N 721 Accomack MD

FROST AND FREEZE

S1674 Washington VA

Grayson Smyth

PENDING DESIGNATIONS

Drought Franklin Pittsylvania VA

Freeze Carroll VA

As of September 17, 2002 we have received completed DAR’s and have submitted to the Secretary of Agriculture for an Emergency Designation on the following counties:

Buckingham Cumberland Caroline Hanover

Mecklenburg Nottoway Prince William Goochland

Appomattox Westmoreland King George Madison

Powhattan New Kent Augusta Wythe

Bland Rockingham Page Nelson

Lunenburg King & Queen Bedford Montgomery

Botetourt Stafford Suffolk Spotsylvania

Middlesex Craig

As of September 17, 2002 we have received a request from the Governor’s office for a completion of a DAR for the following counties:

Albemarle Dinwiddie Fauquier Amelia

Campbell Chesterfield Essex Scott

Amhurst Prince George Alleghany Culpeper

Charlotte

Since January 2002 there has been 54 counties approved for the Emergency Conservation program (ECP). A total of 4 million has been released so far. An additional 2 counties have been submitted to Washington DC for approval.