Texas Producers Hit Hard by Drought Economic Impact over $550 Million

width=100Fort Worth Texas -Texas and Southwestern Cattle Raisers Association President Jon Means released the following statement today after the Texas AgriLife Extension Service released a drought impact report estimating the current economic impact of the drought to Texas livestock producers at $569 million.      Even though the past week has brought much needed rain to our pastures cattle ranchers across Texas are still coping with historically dire drought conditions.  Unlike previous droughts these particular conditions amass on top of already dismal conditions for rural Southeast Texas producers after Hurricane Ike took out thousands of cattle last fall.   The cattle industry is critical to the Texas economy and accounts for almost half the total cash receipts for all agriculture products in Texas.  Additionally Texas is the number one cattle producing state in the country so any economic hit taken at the state level will ultimately affect the industrys economic impact on a national level.    Our members are forced to either buy supplemental feed which is extremely expensive or put parts of or their entire herd on the market early.  Both of these options affect the industry economically.  Since producers across the entire state are experiencing some sort of drought conditions large amounts of cattle are entering the supply chain earlier than normal ultimately driving the price way down.   Members of the Texas and Southwestern Cattle Raisers Association were relieved to see Governor Perry ask U.S. Secretary of Agriculture Vilsack to designate all 254 counties in Texas as disaster areas.  This is the first step to address the economic losses affecting the Texas cattle industry caused by the drought.  However more action is needed.    The new administration will have to answer the Governors call in order to release any federal emergency funds to our producers.  We are hopeful this task will be carried out in a swift manner.  In the mean time members of TSCRA will continue to work the state and federal funding chain and do what we always do during times of drought...pray for more rain.   According to the Texas AgriLife Extension Service the economic impact of drought for livestock is estimated to be $569 million from November 2008 until March 1 2009.  When drought losses from earlier in 2008 are added to those this winter the total loss is $829 million.  Texas and Southwestern Cattle Raisers Association is a 131-year-old trade organization and is the largest livestock association in Texas.  TSCRA has more than 15000 members who manage approximately 4 million head of cattle on 51.5 million acres of range and pasture land primarily in Texas and Oklahoma.  TSCRA provides law enforcement services livestock inspection legislative and regulatory advocacy and educational opportunities for its members.
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