Hurricane Katrina :: Economic Impact
Hurricane Katrina has already had significant economic effects, which are expected to continue. Here is more about the Economy variables.
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) [16]. The main impact of the storm on agriculture is likely to involve ocean shipping and exports. In 2004, 22 percent of U.S. wheat exports, 71 percent of corn exports, and 65 percent of soybean exports passed through Gulf ports. However, major grain shipping usually does not occur until later in the fall, when ports may again be operational [17].
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In addition to the 47 Mississippi counties covered by the Presidential primary natural disaster designation, on September 9 the [United States Department of Agriculture|USDA] declared an additional 31 counties as primary agricultural disaster areas. This makes farmers and other agricultural producers eligible for low interest emergency loans to cover losses. The remaining four Mississippi counties are classified as "contiguous" and are also eligible for assistance [18].
Forestry constitutes a major industry in South Mississippi, accounting for 10 percent of all jobs in the state [19]. According to the Mississippi Forestry Commission, Hurricane Katrina caused significant damage to 1.3 million acres 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 counties.
An estimated 14.6 million cords of paperwood and 3.2 billion board feet 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 [20].
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