Gavin Hewitt reports: "The drought threatens to be the worst this century"

The drought is already the third worst this century and could surpass the droughts of 1929 and 1966 to become the most devastating, according to scientists with the US Geological Survey.

On Tuesday, US Senators voted down the Democrats' $11bn farm aid proposal in favour of the Republicans' $6.7bn plan.

The package aims to shelter US farmers from depressed world prices.

However some senators complained that it failed to respond to the drought.

Republican Senator Pat Roberts quickly drafted a $7.5bn proposal containing additional disaster assistance, but Democrats said it would not help drought-stricken farmers on the East Coast.

A final vote has been put off while the two sides try to find a compromise.

Senate Democrat Leader Tom Daschle said his party would seek to add money for drought and flood losses.

US Agriculture Secretary Dan Glickman has declared West Virginia and parts of Kentucky, Ohio, Maryland, Pennsylvania and Virginia disaster areas, making low-interest loans available to farmers.

This means that farmers who lose 30% of their incomes will be eligible for loans up to $500,000 at low interest.

Heatwave funds

US President Bill Clinton has released another $55m to help low-income Americans cope with the stifling summer heat wave.

Gone fishing, but where's the water gone?

The funds are destined for nine Midwestern and Southern states, some of the hardest hit by the drought.

The money will be used to help people on low incomes to buy air conditioners and fans and pay for the electricity needed to run them.

The latest money is in addition to $100m in aid announced in July to help farmers in 16 other states protect their crops from being destroyed.

The latest $55m will be divided between Illinois, Indiana, Iowa, Kansas, Kentucky, Minnesota, Missouri, Nebraska and Wisconsin.

No end in sight

David Eaton has lost 70% of the Christmas trees at his farm in Galway, New York

Despite cooler conditions for the past few days, meteorologists say that the dire drought conditions could persist for weeks, if not months.

So far at least 224 people have died from heat-related causes since 19 July, mainly in the Midwest and East. Most of the victims were people with no access to air conditioning.

Ronald Evaldi, a hydrologist with the US Geological Survey said months of inadequate rainfall have combined with poor groundwater reserves to create a dire situation for farmers and ranchers.