Emergency Agricultural Relief Act of 1988

Emergency Agricultural Relief Act of 1988 - Amends the Agricultural Act of 1949 to provide disaster payments for wheat, feed grains, rice, and upland cotton lost in 1988 to drought and other natural disasters.

Provides disaster payments to nonprogram producers in specified drought or natural disaster-affected areas. Limits producer payments to not more than $100,000.

Provides feed assistance (including transportation) for producers of livestock, poultry, and swine affected by drought or other natural disasters.

Provides assistance to orchard owners who have lost trees as a result of the drought.

Extends disaster payments to 1988 producers of wheat, feed grains, upland cotton, and rice who are located in counties eligible to receive disaster emergency loans and who did not purchase reduced crop yield insurance.

Increases milk price support levels. Revises support level reduction provisions.

Provides disaster emergency assistance to counties contiguous to a disaster-affected county under specified conditions.

Permits haying and grazing on conservation reserve acreage during periods of drought.

Provides for 1988 rural agribusiness disaster assistance.

Makes food assistance available for Indian farmers and ranchers affected by drought.

States that the chief executive officer of a State shall request the Secretary of Agriculture to make specified agricultural emergency determinations. Requires the Secretary to make such a determination within 25 days of receiving the request.

Directs the Secretary to take into consideration the effects of the 1988 drought on a borrower's income when making specified agricultural loan restructuring determinations.

Directs the Secretary to provide grain to alcohol fuel producers in times of shortage at prices and in quantities that will ensure the economic vitality of such industry.

Directs the Secretary to prepare and submit to the appropriate congressional committees: (1) a drought relief contingency plan; and (2) a forward contracting report.

Expresses the sense of the Congress regarding the importance of foreign trade to the domestic agricultural industry and the need to continue to expand such trade. Declares there should be no embargo on domestic agricultural commodities and no reduction in export promotion programs, except in the case of an extreme national emergency.

Amends the Food Security Act of 1985 to exclude payments under a special conservation reserve enhancement program from specified payment limitations.