Gov. Heineman Requests Assistance for Nebraska Dry Bean Producers

(Lincoln, Neb.) Governor Dave Heineman has been in contact with U.S. Agriculture Secretary Tom Vilsack requesting assistance for Nebraska’s dry bean industry. The Governor spoke with Sec. Vilsack this morning after sending a letter outlining the challenges facing dry bean producers. The market for dry beans has been distressed recently, due in part to the impact of the economic downturn.

In the letter Gov. Heineman wrote, “The current global economic downturn has combined with other factors to create a stoppage of movement of great northern beans in the marketplace. As the nation’s top producer of great northern beans, with 85 percent of U.S. production, this has had a huge impact on our state.”

Nebraska dry bean processors have not been able to find domestic or foreign markets for the contracted supply of 2008 great northern beans. Without markets for contracted beans, processors have been unable to bid on the remaining 2008 supply still held by producers in western Nebraska.

The Governor requested that U.S. Department of Agriculture (USDA) consider making funding known as Section 32 funds available for the purchase of 25,000 metric tons of great northern beans. USDA section 32 funds have been used in the past to purchase surplus commodities from the marketplace to help align supply and demand.

“We are coordinating this effort with Senator Nelson, Senator Johanns and Congressman Smith,” Gov. Heineman said. “I hope our collective effort will bring some relief for our western Nebraska producers.”

Nebraska Agriculture Director Greg Ibach said, “We’ve worked with representatives of the dry bean industry and our congressional delegation to help find export outlets for great northerns. We will continue these efforts, but more immediate relief is needed so that dry bean producers and processors can make plans for the 2009 crop season. We hope USDA will respond positively to our request.”

Secretary Vilsack Letter (pdf)