***Thank Chairman Collin Peterson (or Reps. Bob Etheridge or Mike
McIntyre) for the introduction.***

**I also want to thank Rep. Bob Etheridge of North Carolina and the
delegations from across the Southeast for leading the charge in sharing
concerns about the economic impact of the drought. They are helping make
clear to the congressional leadership and the president the need for
additional federal assistance for farmers. We appreciate your support.**

**In many areas of North Carolina, drought conditions are the worst in
our recorded history and the long-term forecast is for a drier than
normal winter. Several communities have as little as 3 month's water
supply remaining. The simple fact is that if we do not get significant
rainfall soon, some areas may face water rationing and the possibility
of running out of water entirely.**

**Since the first signs of the drought appeared in March, we have urged,
and in many cases mandated, residents, businesses and government
agencies to conserve water. We have made state water conservation
experts available to be dispatched to help water systems that need
help.**

**Today 5 million North Carolinians who are served by about 250 public
water systems are under some type of water restrictions, either
voluntary or mandatory. But as you know, asking citizens to stop
watering their lawns, taking shorter showers and avoid washing cars, is
only 1 solution in a sea of problems created by the drought.**

**I have warned that if volunteer and mandatory conservation on the
local level does not work, I will be forced to declare an emergency and
even require water rationing.**

**As North Carolina is drying up, our state's number 1 industry is also
suffering. Agriculture and agribusiness generate \$66 billion dollars a
year in North Carolina and employ 17 percent of our workforce.**

**Our pastures are burning up one blade of grass at a time. Our fields
are baking one pod of soybeans; one bowl of cotton; one leaf of tobacco;
and one stalk of corn at a time. This may not be as dramatic as news
photos showing the wildfires in California. But the devastation to the
thousands of hard working farm families in North Carolina is just as
tragic. Behind every dusty field of sun-baked crops is a family worried
if they will be able to keep the farm going for another season.**

**I have waived weight restrictions for trucks to make sure hay gets
quickly to our drought-stricken farmers. The U.S. Agriculture Department
has positively responded to my August request for federal disaster aid
for farmers facing drought losses.**

**Let me give you some numbers that illustrate the extent to which this
drought has ravaged our state's top industry.**

**Soybean yields are now projected to be at 20 bushels per acre. This is
the poorest yield on soybeans since 1983.**

**Peanut yields are down 800 pounds per acre from last year. This loss
comes in a year when the North Carolina farmers planted an additional
8,000 more of peanuts.**

**This year's corn crop was expected to be the largest in North Carolina
in decades. Boosted by good prices and nationwide interest in ethanol
production, our farmers planted 1.1 million acres of corn. But lack of
rain has stunted growth and extreme temperatures have wilted the plants.
Corn yields are now at 89 bushels per acre. That is the smallest yields
have been since 2002. Cotton production is now expected to total 2,000
pounds an acre, a 51 percent drop from production last year.**

**The drought has not been the only slap to our farmers this year. After
an Easter weekend freeze, our apples, peaches and grapes were nearly
wiped out. For those crops that managed to survive the freeze, the
months without significant rain have resulted in a forecast cut to North
Carolina apple production down to 50 million pounds from 173 million
pounds last year. Peach production is estimated at 1,000 tons, down 82
percent from last year. Both of these crops are experiencing the
smallest yields since 1955.**

**As I mentioned earlier, hay is a major concern for those with
livestock. This year we are looking at production of about 897,000 tons
of hay, a 45 percent drop from last year. Total row crop and hay loss as
a result of the drought is unofficially estimated at \$324.8 million
dollars.**

**Many of our farmers do not know how they will feed their livestock
this winter. They face the hard choice between paying for expensive hay
from other states or selling their animals early. Many have already
chosen to sell their cattle prematurely.**

**Farmers across the state have reported that they will need 800,000
additional bales of hay to get them through the year. During the drought
of 2002, our state Department of Agriculture helped deliver 10,000 bales
of hay to farmers in need. But that drought only affected a portion of
the state. This time, the need is widespread and 80 times greater.**

**Farmers whose corn and soybean crops have been ruined by the drought
are now, as a last resort, baling it for silage or selling it for animal
feed. On the state government level we are doing all we can to help our
struggling farmers. We have set up a Hay Alert program to get feed to
farmers that need it most. Thanks to the generosity of some farming
organizations and creativity of farmers, some families will get enough
hay for their animals to make it through the winter.**

**As the drought continues, farmers are exploring alternative resources
for livestock water. With 71 of our counties classified as under
exceptional drought, the most serious drought classification, many of
our streams have stopped running and our ponds have dried up.**

**The agricultural losses I mentioned earlier do not take into account
the production cuts faced by our nursery/greenhouse industry, Christmas
Trees, aquaculture, potatoes and sweet potatoes, and other fruits and
vegetables. Dairies are seeing lower milk production per cow due to the
extreme heat and water shortage. Swine and poultry operations have also
suffered because of the drought.**

**Unless we can figure out a way to make it rain and I am not joking
here, the conservation measures, both voluntary and even ordered by
state and local governments, probably will not be enough to revive an
entire industry. We have already lost too much. The bottom line is that
our farmers need more money.**

**They do not need more loans that they will be unable to repay when
their crops fail to bring in enough income. They need grants so they
will be able to continue to farm next year and many years into the
future.**

**Thank you for your continued support in helping our farmers recover
from this devastating drought and sustaining our state's number 1
industry.**

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