Good news for Midwest retailers and their grower-customers: A new supplemental spending bill that includes $2.65 billion for Midwestern flood relief has been signed by President Bush.
The bill, signed on July 7, was approved by the U.S. House of Representatives and Senate prior to the July 4th break. The overall $162 billion bill appropriates money for the war in Iraq and Afghanistan, sets up a plan for veterans’ education, and extends unemployment benefits for 13 weeks. There is $897 million allocated for the Federal Emergency Management Agency (FEMA), though FEMA spending on the disaster in the Midwest would have continued even if the bill had been delayed beyond this week.
Other agencies receiving money that will be directed to the flood-stricken Midwest are the Small Business Administration, the U.S. Army Corps of Engineer, and USDA. Community development block grants and economic development money are included. The flood money was pushed by Iowa’s two senators, Democrat Tom Harkin and Republican Charles Grassley. In the House, all five Iowa members united on a bipartisan basis for what was viewed as a first installment of federal aid.
"Passage of this bill isn’t just about the money," Grassley said. "It’s a sign. Iowans need to know that we’re going to help them get back on their feet." Harkin said he will continue to advocate for a second flood relief bill, likely to emerge later this summer as either an attachment to another piece of legislation or a stand-alone bill. It is still unclear how much the federal government may have to spend to assist Midwesterners. Members of the delegation have been meeting to discuss what to do next. The long-term recovery efforts include the railroad bridges damaged in Iowa.
On another front, New Holland Agriculture has announced a flood assistance initiative to aid producers whose equipment has been damaged by the Midwest flooding. In conjunction with financial services provider CNH Capital, New Holland will work with affected producers, where possible, to revise existing payment plans, or to replace flood-damaged equipment and provide special financing through July 31. Retailers can notify their growers about contacting any New Holland dealership or calling 866-NEW-HLND (866-639-4563).
