House Ways and Means Chairman prepares Palmetto Farm Aid
December 22, 2015
House Ways and Means Chairman Brian White (District 6-Anderson) today announced plans to introduce the first of several legislative responses to the catastrophic flooding the state received this October. The House Ways and Means Committee and its subcommittees have been holding hearings for two months to understand the impacts of the flood and one of the most devastating economic impacts has been to South Carolina’s agriculture industry, which sustained direct crop loss of over $375 million in the same year that two-thirds of the state experienced moderate or serious drought.
“While the agricultural crop loss crisis is not the only need arising out of October’s flooding, it is one of the most important and time-sensitive, which is why I plan to push for a Palmetto Farm Aid bill as soon as we begin the new legislative session in January. Agriculture is our number one industry and our farmers are in desperate need.
Crop insurance is not true insurance and many crops are not insurable so while it will cover some of the losses, it is an insufficient mechanism for insuring against catastrophic loss arising from a natural disaster. There may be some federal government assistance available but these measures fall far short of preventing many of our farmers from losing their farms and livelihoods. We must stand up for our farmers to prevent a pillar of the South Carolina economy from collapsing,” stated Chairman White.
As the specifics of the Palmetto Farm Aid bill become available, Ways and Means Chairman Brian White will continue to work with House leadership to ensure this package makes it to the House floor for a vote as soon as possible.
“South Carolina farmers have always played a fundamental role in our economy. Because of the catastrophic damage caused by the historic flood, we are at risk of losing a significant portion of our small family farms. The House stands ready to work on a solution that will offer the agriculture community the assistance they need to recover from this devastating event,” Speaker Jay Lucas stated.
The Economic Impact of Flooding on South Carolina Agriculture The 2015 growing season in South Carolina has been marked by weather extremes with 66 percent of the state in serious or moderate drought in midSeptember followed by the most significant rainfall event in the state’s recorded history hitting in the first week of October. Rainfall amounts were highest along the coast and coastal plain, the state’s most productive farmland. The largest flood losses were to the important cash crops of soybeans, cotton, and peanuts with collective losses of $285 million. Losses were also incurred in vegetable crops including tomatoes, bell peppers, broccoli, eggplant, squash, and cucumbers accounting for an additional $45 million in losses. Among fruit growers, damage to peach trees accounted for the major loss. In addition to losses in the field, $46 million of losses from prevented planting has occurred with the largest losses in grains primarily wheat and to a lesser extent oats. Among vegetable crops, the primary losses are in prevented planting for winter leafy greens, while for fruit growers losses are being incurred primarily from delayed strawberry planting. In aggregate, direct losses to South Carolina farmers from the October floods are estimated to be $376 million.
Table 1: Estimated Losses in the Field and from Prevented Planting Losses in the Field Losses from Prevented Planting Peanuts $72,899,200 Wheat $24,331,883 Cotton $86,121,984 Oats $1,393,140 Soybeans $125,846,000 Canola/Rapeseed $284,646 Vegetables $45,000,000 Vegetables $15,000,000 Fruit $10,000,000 Fruit $5,000,000 Total $329,867,184 Total $46,009,669 Total Loss $375,876,853 Source: USDA, Farm Service Agency and South Carolina Department of Agriculture.
In addition to those direct losses, the ripple effect through the state’s economy is being felt by reduced purchases from supporting industry (indirect effect) and through reduced purchasing power of workers in agriculture and related industry (induced effect). It is estimated that the total impact on the state’s economy including direct and secondary impacts is $588 million. In addition to production agriculture, sectors most impacted are agricultural services including contract labor, equipment and support services, real estate, restaurants, insurance, maintenance and repair construction, and trucking. The direct income effect is estimated to be $115 million with a total income effect of $185 million. In terms of employment loss, the loss in agricultural employment is estimated at 3,597 workers with a total loss in employment in the state of 5,528 workers.
