Economic Effects of Hurricane Katrina - Agriculture and Forestry

Agriculture and Forestry

According to the United States Department of Agriculture (USDA), the national impact of Hurricane Katrina on Gulf Coast crops was minimal, with most of the damage borne by minor producers of major crops (corn, soybeans, and cotton). The main impact of the storm on agriculture is likely to involve ocean shipping and exports. In 2004, 22% of U.S. wheat exports, 71% of corn exports, and 65% of soybean exports passed through Gulf ports. Shipping did not occur until later in the fall, when ports would again be operational.

In addition to the 50 Mississippi counties covered by the Presidential primary natural disaster designation, the USDA declared an additional 31 counties as primary agricultural disaster areas. This made farmers and other agricultural producers eligible for low interest emergency loans to cover losses. The remaining four Mississippi counties were classified as, "contiguous" and were also eligible for assistance.

Gulfport, Mississippi serves as a major ocean shipping port for the southern United States, which was found to be inoperable for as much as one year. Chiquita, Dole, Crowley, Gearbulk, P&O, and others had significant operations in Gulfport. On a short-term basis these companies have relocated necessary operations to unaffected ports.

Forestry constitutes a major industry in southern Mississippi, accounting for 10% of all jobs in the state. According to the Mississippi Forestry Commission, Hurricane Katrina caused significant damage to 1.3 million acres (5,300 km²) of forestland in the state. The greatest damage occurred from the coastal counties northward to Laurel, with heavy damage to pine forests in Hancock, Harrison, and Pearl River countries.

An estimated 14.6 million cords (52,900,000 m³) of paperwood and 3.2 billion board feet (7,600,000 m³) of sawtimber were destroyed. The estimated economic impact of this loss was $1.3 billion. Additionally, there was an estimated $1.1 billion in damage to urban trees in 181 Mississippi communities.

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