DOMENICI: USDA FINALLY MOVES TO RELEASE RESERVE GRAINS

FOR IMMEDIATE RELEASE                    CONTACT:  CHRIS GALLEGOS
July 1, 1996                                       (202) 224-7082




  Feed Will Be Used to Aid Drought-Stricken Livestock Producers


ALBUQUERQUE -- Senator Pete Domenici today announced that the
U.S. Department of Agriculture will begin releasing some of its 45
million bushels of feed grain reserves to assist drought-stricken
livestock producers in New Mexico and the Southwest.


The USDA today announced that it would begin to make up to $40
million in grain reserves available as drought aid to livestock
producers.  The action comes almost a month after the Senate began
passing resolutions--several of which were authored or co-sponsored
by Domenici--urging the department to take action to release its
grain reserves.


"I am very pleased that the USDA is moving forward.  The
recent rains in New Mexico are certainly welcome, but for months
our farmers and ranchers have suffered not only from an overbearing
sun, but also inaction.  Today's announcement could have, and
should have, come sooner," Domenici said.


Last Friday, Domenici spoke with Jack Lew, acting director of
the White House Office of Management and Budget, to strongly urge
him to act on an aid proposal presented to the White House by the
USDA on June 4. 


The President today declared the Southwest and other areas an
emergency area.  With the declaration, the USDA can begin using its
feed grain reserves as drought aid.


The USDA will sell up to 15 million bushels of reserve grain
in order to provide aid to eligible livestock producers in
purchasing feed for their herds over the next 90 days.  The
proceeds from the grain sales will be used to make cost-share
assistance available under the Disaster Reserve Assistance Program.


"It is my hope that as many New Mexico farmers and ranchers as
possible will qualify for this aid," Domenici said.  "This will
begin to take care of our livestock producers who were ineligible
for aid under the Livestock Feed Program."


New Mexico livestock producers will be eligible if they have
lost 40 percent or more of feed production, and do not have
sufficient feed available for livestock for the duration of the
emergency.  The producers must be actively engaged in farming and
ranching, with 10 percent or more of their total annual gross
receipts from production of grain and livestock, and have annual
qualifying gross revenue of not more than $2.5 million.  


This assistance is in line with the short and long-term
actions advocated by a Drought and Emergency Assistance Task Force,
which was formed in May by the Federal Emergency Management Agency
at Domenici's request.