II

103D CONGRESS

1ST SESSION S. 1263

To provide disaster assistance to agricultural producers, and for other

purposes.

IN THE SENATE OF THE UNITED STATES

JULY 20 (legislative day, JUNE 30), 1993

Mr. HARKIN (for himself and Mr. CONRAD) introduced the following bill;

which was read twice and referred to the Committee on Agriculture,

Nutrition, and Forestry

A BILL

To provide disaster assistance to agricultural producers, and

for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

4 (a) SHORT TITLE.—This Act may be cited as the

5 ‘‘Disaster Assistance Act of 1993’’.

6 (b) TABLE OF CONTENTS.—The table of contents of

7 this Act is as follows:

Sec. 1. Short title; table of contents.

Sec. 2. Definitions.

TITLE I—EMERGENCY CROP LOSS ASSISTANCE

Subtitle A—Annual Crops
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Sec. 101. Payments to program participants for target price commodities.

Sec. 102. Payments to program nonparticipants for target price commodities.

Sec. 103. Peanuts, sugar, and tobacco.

Sec. 104. Soybeans and nonprogram crops.

Sec. 105. Crop quality reduction disaster payments.

Sec. 106. Effect of Federal crop insurance payments.

Sec. 107. Crop insurance coverage for the 1994 and 1995 crops.

Sec. 108. Crops harvested for forage uses.

Sec. 109. Payment limitations.

Sec. 110. De minimis yields.

Sec. 111. Substitution of crop insurance program yields.

Sec. 112. Planting oilseeds on prevented planting acreage.

Subtitle B—Orchards

Sec. 121. Definition of eligible orchardist.

Sec. 122. Eligibility.

Sec. 123. Assistance.

Sec. 124. Limitation on assistance.

Sec. 125. Duplicative payments.

Subtitle C—Forest Crops

Sec. 131. Definition of eligible tree farmer.

Sec. 132. Eligibility.

Sec. 133. Assistance.

Sec. 134. Limitation on assistance.

Sec. 135. Duplicative payments.

Subtitle D—Administrative Provisions

Sec. 141. Ineligibility.

Sec. 142. Timing and manner of assistance.

Sec. 143. Commodity Credit Corporation.

Sec. 144. Regulations.

Sec. 145. Application of subtitle.

TITLE II—RURAL BUSINESSES

Sec. 201. Disaster assistance for rural business enterprises.

TITLE III—DISASTER CREDIT AND FORBEARANCE

Sec. 301. Emergency loans.

Sec. 302. Farm operating loans.

1 SEC. 2. DEFINITIONS.

2 As used in this Act:

3 (1) DAMAGING WEATHER.—The term ‘‘damag4 ing weather’’ includes drought, hail, excessive mois-
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1 ture, freeze, tornado, hurricane, earthquake, or ex2 cessive wind, or any combination thereof.

3 (2) RELATED CONDITION.—The term ‘‘related

4 condition’’ includes insect infestations that do not

5 regularly reoccur, plant diseases, or other deteriora6 tion of a crop of a commodity, including aflatoxin,

7 that is accelerated or exacerbated naturally as a re8 sult of damaging weather occurring prior to or

9 during harvest.

10 (3) SECRETARY.—The term ‘‘Secretary’’ means

11 the Secretary of Agriculture.

12 TITLE I—EMERGENCY CROP

13 LOSS ASSISTANCE

14 Subtitle A—Annual Crops

15 SEC. 101. PAYMENTS TO PROGRAM PARTICIPANTS FOR

16 TARGET PRICE COMMODITIES.

17 (a) DISASTER PAYMENTS.—

18 (1) IN GENERAL.—Effective only for producers

19 on a farm who elected to participate in the produc20 tion adjustment program established under the Agri21 cultural Act of 1949 (7 U.S.C. 1421 et seq.) for the

22 1993 crop of wheat, feed grains, upland cotton,

23 extra long staple cotton, or rice, except as otherwise

24 provided in this subsection, if the Secretary deter25 mines that, because of damaging weather or related
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1 condition in 1992 or 1993, the total quantity of the

2 1993 crop of the commodity that the producers are

3 able to harvest on the farm is less than the result

4 of multiplying 60 percent (or, in the case of produc5 ers who obtained crop insurance for the 1993 crop

6 of the commodity under the Federal Crop Insurance

7 Act (7 U.S.C. 1501 et seq.), 65 percent) of the farm

8 program payment yield established by the Secretary

9 for the crop by the sum of the acreage planted for

10 harvest and the acreage prevented from being plant11 ed (because of a natural disaster, as determined by

12 the Secretary) for the crop, the Secretary shall make

13 a disaster payment available to the producers at a

14 rate equal to—

15 (A) 65 percent of the established price for

16 the crop for any deficiency in production great17 er than—

18 (i) 40 percent, but not greater than

19 80 percent, for the crop; or

20 (ii) in the case of producers who ob21 tained crop insurance for the 1993 crop of

22 the commodity under the Federal Crop In23 surance Act, 35 percent, but not greater

24 than 75 percent, for the crop; and
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1 (B) 90 percent of the established price for

2 the crop for any deficiency in production great3 er than—

4 (i) 80 percent for the crop; or

5 (ii) in the case of producers who ob6 tained crop insurance for the 1993 crop of

7 the commodity under such Act, 75 percent

8 for the crop.

9 (2) LIMITATIONS.—

10 (A) ACREAGE IN EXCESS OF PERMITTED

11 ACREAGE.—Payments provided under para12 graph (1) for a crop of a commodity may not

13 be made available to producers on a farm with

14 respect to any acreage in excess of the per15 mitted acreage for the farm for the commodity.

16 (B) CROP INSURANCE.—Payments pro17 vided under paragraph (1) for a crop of a com18 modity may not be made available to producers

19 on a farm unless the producers enter into an

20 agreement to obtain multiperil crop insurance,

21 to the extent required under section 107.

22 (3) REDUCTION IN DEFICIENCY PAYMENTS.—

23 The total quantity of a crop of a commodity on

24 which deficiency payments otherwise would be pay25 able to producers on a farm under the Agricultural
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1 Act of 1949 shall be reduced by the quantity on

2 which a payment is made to the producers for the

3 crop under paragraph (1).

4 (4) ELECTION OF PAYMENTS.—

5 (A) APPLICATION OF PARAGRAPH.—This

6 paragraph shall apply, effective only for the

7 1993 crops of wheat, feed grains, upland cot8 ton, extra long staple cotton, and rice, to pro9 ducers on a farm who—

10 (i) had failed wheat, feed grain, up11 land cotton, extra long staple cotton, or

12 rice acreage; or

13 (ii) were prevented from planting

14 acreage to the commodity because of dam15 aging weather or related condition in 1992

16 or 1993.

17 (B) ELECTION.—The Secretary shall (not

18 later than 30 days after the date of enactment

19 of this Act) permit producers referred to in sub20 paragraph (A) to elect whether to receive disas21 ter payments in accordance with this section in

22 lieu of payments received under the Agricul23 tural Act of 1949.

24 (b) ADVANCE DEFICIENCY PAYMENTS.—
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1 (1) APPLICATION OF SUBSECTION.—This sub2 section shall apply only to producers on a farm who

3 elected to participate in the production adjustment

4 program established under the Agricultural Act of

5 1949 for the 1993 crop of wheat, feed grains, up6 land cotton, extra long staple cotton, or rice.

7 (2) FORGIVENESS OF REFUND REQUIRE8 MENT.—

9 (A) IN GENERAL.—Subject to subpara10 graph (B), if because of damaging weather or

11 related condition in 1992 or 1993 the total

12 quantity of the 1993 crop of the commodity

13 that the producers are able to harvest on the

14 farm is less than the result of multiplying the

15 farm program payment yield established by the

16 Secretary for the crop by the sum of the acre17 age planted for harvest and the acreage pre18 vented from being planted (because of a natural

19 disaster, as determined by the Secretary) for

20 the crop (referred to in this subsection as the

21 ‘‘qualifying quantity’’), the producers shall not

22 be required to refund any advance deficiency

23 payment made to the producers for the crop

24 under section 107C of the Agricultural Act of

25 1949 (7 U.S.C. 1445b–2) with respect to that
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1 portion of the deficiency in production that does

2 not exceed—

3 (i) in the case of producers who ob4 tained crop insurance for the 1993 crop of

5 the commodity under the Federal Crop In6 surance Act, 35 percent of the qualifying

7 quantity; and

8 (ii) in the case of other producers, 40

9 percent of the qualifying quantity.

10 (B) CROP INSURANCE.—Producers on a

11 farm shall not be eligible for the forgiveness

12 provided for under subparagraph (A), unless

13 the producers enter into an agreement to obtain

14 multiperil crop insurance, to the extent required

15 under section 107.

16 (3) ELECTION FOR NONRECIPIENTS.—The Sec17 retary shall allow producers on a farm who elected,

18 prior to the date of enactment of this Act, not to re19 ceive advance deficiency payments made available for

20 the 1993 crop under section 107C of the Agricul21 tural Act of 1949, to elect (not later than 30 days

22 after the date of enactment of this Act) whether to

23 receive the advance deficiency payments.

24 (4) DATE OF REFUND FOR PAYMENTS.—Effec25 tive only for the 1993 crops of wheat, feed grains,
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1 upland cotton, and rice, if the Secretary determines

2 that any portion of the advance deficiency payment

3 made to producers for the crop under section 107C

4 of the Agricultural Act of 1949 must be refunded,

5 the refund shall not be required prior to July 31,

6 1994, for that portion of the crop for which a disas7 ter payment is made under subsection (a).

8 SEC. 102. PAYMENTS TO PROGRAM NONPARTICIPANTS FOR

9 TARGET PRICE COMMODITIES.

10 (a) DISASTER PAYMENTS.—

11 (1) IN GENERAL.—Effective only for producers

12 on a farm who elected not to participate in the pro13 duction adjustment program established under the

14 Agricultural Act of 1949 (7 U.S.C. 1421 et seq.) for

15 the 1993 crop of wheat, feed grains, upland cotton,

16 extra long staple cotton, or rice, if the Secretary de17 termines that because of damaging weather or relat18 ed condition in 1992 or 1993, the total quantity of

19 the 1993 crop of the commodity that the producers

20 are able to harvest on the farm is less than the re21 sult of multiplying 60 percent (or in the case of pro22 ducers who obtained crop insurance for the 1993

23 crop of the commodity under the Federal Crop In24 surance Act (7 U.S.C. 1501 et seq.), 65 percent) of

25 the county average yield established by the Secretary
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1 for the crop by the sum of acreage planted for har2 vest and the acreage for which prevented planted

3 credit is approved by the Secretary for the crop

4 under subsection (b), the Secretary shall make a dis5 aster payment available to the producers.

6 (2) PAYMENT RATE.—The payment shall be

7 made to the producers at a rate equal to—

8 (A) 65 percent of the basic county loan

9 rate (or a comparable price if there is no cur10 rent basic county loan rate) for the crop, as de11 termined by the Secretary, for any deficiency in

12 production greater than—

13 (i) 40 percent, but not greater than

14 80 percent, for the crop; or

15 (ii) in the case of producers who ob16 tained crop insurance for the 1993 crop of

17 the commodity under the Federal Crop In18 surance Act, 35 percent, but not greater

19 than 75 percent, for the crop; and

20 (B) 90 percent of the basic county loan

21 rate (or a comparable price if there is no cur22 rent basic county loan rate) for the crop, as de23 termined by the Secretary, for any deficiency in

24 production greater than—

25 (i) 80 percent for the crop; or
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1 (ii) in the case of producers who ob2 tained crop insurance for the 1993 crop of

3 the commodity under such Act, 75 percent

4 for the crop.

5 (b) PREVENTED PLANTING CREDIT.—

6 (1) IN GENERAL.—Subject to paragraph (2),

7 the Secretary shall provide prevented planting credit

8 under subsection (a) with respect to acreage that

9 producers on a farm were prevented from planting

10 to the 1993 crop of the commodity for harvest be11 cause of damaging weather or related condition in

12 1992 or 1993, as determined by the Secretary.

13 (2) MAXIMUM ACREAGE.—The acreage may not

14 exceed the greater of—

15 (A) a quantity equal to the acreage on the

16 farm planted (or prevented from being planted

17 because of a natural disaster or other condition

18 beyond the control of the producers) to the

19 commodity for harvest in 1992 minus acreage

20 actually planted to the commodity for harvest in

21 1993; or

22 (B) a quantity equal to the average of the

23 acreage on the farm planted (or prevented from

24 being planted because of a natural disaster or

25 other condition beyond the control of the pro-
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1 ducers) to the commodity for harvest in 1990,

2 1991, and 1992 minus acreage actually planted

3 to the commodity for harvest in 1993.

4 (3) ADJUSTMENTS.—The Secretary shall make

5 appropriate adjustments in applying the limitations

6 contained in paragraph (2) to take into account crop

7 rotation practices of the producers.

8 (c) LIMITATIONS.—

9 (1) ACREAGE LIMITATION PROGRAM.—The

10 amount of payments made available to producers on

11 a farm for a crop of a commodity under subsection

12 (a) shall be reduced by a factor equivalent to the

13 acreage limitation program percentage established

14 for the crop under the Agricultural Act of 1949.

15 (2) CROP INSURANCE.—Payments provided

16 under subsection (a) for a crop of a commodity may

17 not be made available to the producers on a farm

18 unless the producers enter into an agreement to ob19 tain multiperil crop insurance, to the extent required

20 under section 107.

21 SEC. 103. PEANUTS, SUGAR, AND TOBACCO.

22 (a) DISASTER PAYMENTS.—

23 (1) IN GENERAL.—Effective only for the 1993

24 crops of peanuts, sugar beets, sugarcane, and to25 bacco, if the Secretary determines that, because of
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1 damaging weather or related condition in 1992 or

2 1993, the total quantity of the 1993 crop of the

3 commodity that the producers on a farm are able to

4 harvest is less than the result of multiplying 60 per5 cent (or, in the case of producers who obtained crop

6 insurance for the 1993 crop of the commodity under

7 the Federal Crop Insurance Act (7 U.S.C. 1501 et

8 seq.), 65 percent) of the county average yield (or

9 program yield, in the case of peanuts) established by

10 the Secretary for the crop by the sum of the acreage

11 planted for harvest and the acreage for which pre12 vented planted credit is approved by the Secretary

13 for the crop under subsection (b), the Secretary shall

14 make a disaster payment available to the producers.

15 (2) PAYMENT RATE.—The payment shall be

16 made to the producers at a rate equal to—

17 (i) 65 percent of the applicable payment

18 level under paragraph (3), as determined by the

19 Secretary—

20 (I) for any deficiency in production

21 greater than 40 percent (or, in the case of

22 producers who purchased crop insurance

23 for the 1993 crop of the commodity under

24 the Federal Crop Insurance Act, 35 per25 cent), but not greater than 80 percent (or,
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1 in the case of producers who purchased

2 crop insurance for the 1993 crop of the

3 commodity under such Act, 75 percent),

4 for the crop; or

5 (II) in the case of a crop of burley to6 bacco or flue-cured tobacco, for any defi7 ciency in production greater than 40 per8 cent (or, in the case of producers who pur9 chased crop insurance for the 1993 crop of

10 the commodity under such Act, 35 per11 cent), but not greater than 80 percent (or,

12 in the case of producers who purchased

13 crop insurance for the 1993 crop of the

14 commodity under such Act, 75 percent), of

15 the effective marketing quota for 1993 of

16 the farm; and

17 (ii) 90 percent of the applicable payment

18 level under paragraph (3), as determined by the

19 Secretary—

20 (I) for any deficiency in production

21 greater than 80 percent (or, in the case of

22 producers who purchased crop insurance

23 for the 1993 crop of the commodity under

24 such Act, 75 percent) for the crop; or
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1 (II) in the case of burley tobacco or

2 flue-cured tobacco, for any deficiency in

3 production greater than 80 percent (or, in

4 the case of producers who purchased crop

5 insurance for the 1993 crop of the com6 modity under such Act, 75 percent) of the

7 effective marketing quota of the farm for

8 1993.

9 (3) PAYMENT LEVEL.—For purposes of para10 graph (1), the payment level for a commodity shall

11 be equal to—

12 (A) for peanuts, the price support level for

13 quota peanuts or the price support level for ad14 ditional peanuts, as applicable;

15 (B) for tobacco, the national average loan

16 rate for the type of tobacco involved, or (if

17 there is no rate) the payment level, as deter18 mined under section 104(a)(2); and

19 (C) for sugar beets and sugarcane, a level

20 determined by the Secretary to be fair and rea21 sonable in relation to the level of price support

22 established for the 1993 crops of sugar beets

23 and sugarcane, and that, insofar as is prac24 ticable, shall reflect no less return to the pro25 ducer than under the 1993 price support levels.
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1 (b) PREVENTED PLANTING CREDIT.—

2 (1) IN GENERAL.—Subject to paragraph (2),

3 the Secretary shall provide prevented planting credit

4 under subsection (a) with respect to acreage that

5 producers on a farm were prevented from planting

6 to the 1993 crop of the commodity for harvest be7 cause of damaging weather or related condition in

8 1992 or 1993, as determined by the Secretary.

9 (2) MAXIMUM ACREAGE.—The acreage may not

10 exceed the greater of—

11 (A) a quantity equal to the acreage on the

12 farm planted (or prevented from being planted

13 because of a natural disaster or other condition

14 beyond the control of the producers) to the

15 commodity for harvest in 1992 minus acreage

16 actually to the commodity planted for harvest in

17 1993; or

18 (B) a quantity equal to the average of the

19 acreage on the farm planted (or prevented from

20 being planted because of a natural disaster or

21 other condition beyond the control of the pro22 ducers) to the commodity for harvest in 1990,

23 1991, and 1992 minus acreage actually planted

24 to the commodity for harvest in 1993.
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1 (3) ADJUSTMENTS.—The Secretary shall make

2 appropriate adjustments in applying the limitations

3 contained in paragraph (2) to take into account crop

4 rotation practices of the producers and any change

5 in quotas for the 1993 crop of tobacco.

6 (c) LIMITATION.—Payments provided under sub7 section (a) for a crop of a commodity may not be made

8 available to the producers on a farm unless the producers

9 enter into an agreement to obtain multiperil crop insur10 ance, to the extent required under section 107.

11 (d) SPECIAL RULES FOR PEANUTS.—Notwithstand12 ing any other provision of law—

13 (1) a deficiency in production of quota peanuts

14 from a farm, as otherwise determined under this

15 section, shall be reduced by the quantity of peanut

16 poundage quota that was the basis of the anticipated

17 production that has been transferred from the farm;

18 (2) payments made under this section shall be

19 made taking into account whether the deficiency for

20 which the deficiency in production is claimed was a

21 deficiency in production of quota or additional pea22 nuts and the payment rate shall be established ac23 cordingly; and

24 (3) the quantity of undermarketings of quota

25 peanuts from a farm for the 1993 crop that may
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1 otherwise be claimed under section 358 of the Agri2 cultural Adjustment Act of 1938 (7 U.S.C. 1358)

3 for purposes of future quota increases shall be re4 duced by the quantity of the deficiency of production

5 of the peanuts for which payment has been received

6 under this section.

7 (e) SPECIAL RULES FOR TOBACCO.—Notwithstand8 ing any other provision of law—

9 (1) the quantity of undermarketings of quota

10 tobacco from a farm for the 1993 crop that may

11 otherwise be claimed under section 317 or 319 of

12 the Agricultural Adjustment Act of 1938 (7 U.S.C.

13 1314c or 1314e) for purposes of future quota in14 creases shall be reduced by the quantity of the defi15 ciency of production of the tobacco for which pay16 ment has been received under this section; and

17 (2) disaster payments made to producers under

18 this section may not be considered by the Secretary

19 in determining the net losses of the Commodity

20 Credit Corporation under section 106A(d) of the Ag21 ricultural Act of 1949 (7 U.S.C. 1445–1(d)).

22 (f) SPECIAL RULE FOR SUGARCANE.—For purposes

23 of determining the total quantity of the 1993 crop of sug24 arcane that the producers on a farm are able to harvest,
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1 the Secretary shall make the determination based on the

2 quantity of recoverable sugar.

3 SEC. 104. SOYBEANS AND NONPROGRAM CROPS.

4 (a) DISASTER PAYMENTS.—

5 (1) IN GENERAL.—

6 (A) ELIGIBILITY.—Effective only for the

7 1993 crops of soybeans and nonprogram crops,

8 if the Secretary determines that, because of

9 damaging weather or related condition in 1992

10 or 1993, the total quantity of the 1993 crop of

11 the commodity that the producers on a farm

12 are able to harvest is less than—

13 (i) with respect to soybeans and sun14 flowers, the result of multiplying 60 per15 cent (or in the case of producers who ob16 tained crop insurance, if available, for the

17 1993 crop year of the commodity under

18 the Federal Crop Insurance Act (7 U.S.C.

19 1501 et seq.), 65 percent) of the State,

20 area, or county yield, adjusted for adverse

21 weather conditions during the 1990, 1991,

22 and 1992 crop years, as determined by the

23 Secretary, for the crop by the sum of the

24 acreage planted for harvest and the acre25 age for which prevented planting credit is
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1 approved by the Secretary for the crop

2 under subsection (b);

3 (ii) with respect to nonprogram crops

4 (other than as provided in clauses (i) and

5 (iii)), the result of multiplying 60 percent

6 (or, in the case of producers who obtained

7 crop insurance, if available, for the 1993

8 crop year of the commodity under the Fed9 eral Crop Insurance Act, 65 percent) of

10 the yield established by the Commodity

11 Credit Corporation under subsection (d)(2)

12 for the crop by the sum of the acreage

13 planted for harvest and the acreage for

14 which prevented planting credit is ap15 proved by the Secretary for the crop under

16 subsection (b); and

17 (iii) with respect to crops covered in

18 section 201(b) of the Agricultural Act of

19 1949 (7 U.S.C. 1446(b)), 60 percent (or in

20 the case of producers who obtained crop

21 insurance, if available, for the 1993 crop

22 year of the commodity under such Act, 65

23 percent) of the historical annual yield of

24 the producers for the crops, as determined

25 by the Secretary,
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1 the Secretary shall make a disaster payment

2 available to the producers.

3 (B) PAYMENT RATE.—The payment shall

4 be made to the producers at a rate equal to—

5 (i) 65 percent of the applicable pay6 ment level under paragraph (2), as deter7 mined by the Secretary, for any deficiency

8 in production for soybeans, sunflowers, and

9 for other nonprogram crops greater than—

10 (I) 40 percent, but not greater

11 than 80 percent; or

12 (II) in the case of producers who

13 obtained crop insurance, if available,

14 for the 1993 crop under the Federal

15 Crop Insurance Act, 35 percent, but

16 not greater than 75 percent; and

17 (ii) 90 percent of the applicable pay18 ment level under paragraph (2), as deter19 mined by the Secretary, for any deficiency

20 in production for soybeans, sunflowers, and

21 for other nonprogram crops greater than—

22 (I) 80 percent; or

23 (II) in the case of producers who

24 obtained crop insurance, if available,
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1 for the 1993 crop under such Act, 75

2 percent.

3 (2) PAYMENT LEVEL.—For purposes of para4 graph (1), the payment level for a commodity shall

5 equal the simple average price received by producers

6 of the commodity, as determined by the Secretary

7 subject to paragraph (3), during the marketing

8 years for the immediately preceding 5 crops of the

9 commodity, excluding the year in which the average

10 price was the highest and the year in which the av11 erage price was the lowest in the period.

12 (3) CALCULATION OF PAYMENTS FOR DIF13 FERENT VARIETIES.—

14 (A) CROP-BY-CROP BASIS.—The Secretary

15 shall make disaster payments under this sub16 section on a crop-by-crop basis, with consider17 ation given to markets and uses of the crops,

18 under regulations issued by the Secretary.

19 (B) DIFFERENT VARIETIES.—For pur20 poses of determining the payment levels on a

21 crop-by-crop basis, the Secretary shall consider

22 as separate crops, and develop separate pay23 ment levels insofar as is practicable for, dif24 ferent varieties of the same commodity, and
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1 commodities for which there is a significant dif2 ference in the economic value in the market.

3 (C) DOUBLE CROPPING.—

4 (i) TREATED SEPARATELY.—In the

5 case of a crop that is historically double

6 cropped (including two crops of the same

7 commodity) by the producers on a farm,

8 the Secretary shall treat each cropping

9 separately for purposes of determining

10 whether the crop was affected by damaging

11 weather or related condition and the total

12 quantity of the crop that the producers are

13 able to harvest.

14 (ii) APPLICATION OF PARAGRAPH.—

15 This paragraph shall not apply in the case

16 of a replacement crop.

17 (4) EXCLUSIONS FROM HARVESTED QUAN18 TITIES.—For purposes of determining the total

19 quantity of the 1993 nonprogram crop of the com20 modity that the producers on a farm are able to har21 vest under paragraph (1), the Secretary shall ex22 clude—

23 (A) commodities that cannot be sold in

24 normal commercial channels of trade; and
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1 (B) dockage, including husks and shells, if

2 the dockage is excluded in determining yields

3 under subsection (d)(2).

4 (b) PREVENTED PLANTING CREDIT.—

5 (1) IN GENERAL.—The Secretary shall provide

6 prevented planting credit under subsection (a) with

7 respect to acreage that producers on a farm were

8 prevented from planting to the 1993 crop of the

9 commodity for harvest because of damaging weather

10 or related condition in 1992 or 1993, as determined

11 by the Secretary.

12 (2) MAXIMUM ACREAGE.—The acreage may not

13 exceed the greater of—

14 (A) a quantity equal to the acreage on the

15 farm planted (or prevented from being planted

16 because of a natural disaster or other condition

17 beyond the control of the producers) to the

18 commodity for harvest in 1992 minus acreage

19 actually planted to the commodity for harvest in

20 1993; or

21 (B) a quantity equal to the average of the

22 acreage on the farm planted (or prevented from

23 being planted because of a natural disaster or

24 other condition beyond the control of the pro25 ducers) to the commodity for harvest in 1990,
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1 1991, and 1992 minus acreage actually planted

2 to the commodity for harvest in 1993.

3 (3) ADJUSTMENTS.—The Secretary shall make

4 appropriate adjustments in applying the limitations

5 contained in paragraph (2) to take into account crop

6 rotation practices of the producers.

7 (c) LIMITATION.—Payments provided under sub8 section (a) for a crop of a commodity may not be made

9 available to the producers on a farm unless the producers

10 enter into an agreement to obtain multiperil crop insur11 ance, to the extent required under section 107.

12 (d) SPECIAL RULES FOR NONPROGRAM CROPS.—

13 (1) DEFINITION OF NONPROGRAM CROP.—As

14 used in this section, the term ‘‘nonprogram crop’’

15 means all crops for which crop insurance through

16 the Federal Crop Insurance Corporation was avail17 able for crop year 1993, and other commercial crops

18 (including ornamentals which shall include flowering

19 shrubs, flowering trees, and field or container grown

20 roses or turf and sweet potatoes for which the insur21 ance was not available for crop year 1993), except

22 that the term shall not include a crop covered under

23 section 101, 102, or 103, soybeans, or sunflowers.

24 (2) FARM YIELDS.—
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1 (A) ESTABLISHMENT.—The Commodity

2 Credit Corporation shall establish disaster pro3 gram farm yields for nonprogram crops to carry

4 out this section.

5 (B) PROVEN YIELDS AVAILABLE.—If the

6 producers on a farm can provide satisfactory

7 evidence to the Commodity Credit Corporation

8 of actual crop yields on the farm for at least 1

9 of the immediately preceding 3 crop years, the

10 yield for the farm shall be based on the proven

11 yield.

12 (C) PROVEN YIELDS NOT AVAILABLE.—If

13 the data do not exist for any of the 3 preceding

14 crop years, the Commodity Credit Corporation

15 shall establish a yield for the farm by using a

16 county average yield for the commodity, or by

17 using other data available to the Corporation.

18 (D) COUNTY AVERAGE YIELDS.—In estab19 lishing county average yields for nonprogram

20 crops, the Commodity Credit Corporation shall

21 use the best available information concerning

22 yields. The information may include extension

23 service records, credible nongovernmental stud24 ies, and yields in similar counties.
27

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1 (3) RESPONSIBILITY OF PRODUCERS.—It shall

2 be the responsibility of the producers of nonprogram

3 crops to provide satisfactory evidence of 1993 crop

4 losses resulting from damaging weather or related

5 condition in 1992 or 1993 in order for the producers

6 to obtain disaster payments under this section.

7 SEC. 105. CROP QUALITY REDUCTION DISASTER PAY8 MENTS.

9 (a) IN GENERAL.—To ensure that all producers of

10 1993 crops covered under sections 101 through 104 are

11 treated equitably, the Secretary shall make additional dis12 aster payments to producers of the crops who suffer losses

13 resulting from the reduced quality of the crops caused by

14 damaging weather or related condition in 1992 or 1993,

15 as determined by the Secretary.

16 (b) ELIGIBLE PRODUCERS.—Producers on a farm of

17 a crop described in subsection (a) shall be eligible to re18 ceive reduced quality disaster payments only if the produc19 ers incur a deficiency in production of—

20 (1) not less than—

21 (A) 40 percent; or

22 (B) in the case of producers who obtained

23 crop insurance for the crop under the Federal

24 Crop Insurance Act (7 U.S.C. 1501 et seq.), 35

25 percent; and
28

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1 (2) not more than 75 percent for the crop (as

2 determined under section 101, 102, 103, or 104, as

3 appropriate).

4 (c) MAXIMUM PAYMENT RATE.—The Secretary shall

5 establish the reduced quality disaster payment rate, except

6 that the rate shall not exceed 10 percent, as determined

7 by the Secretary, of—

8 (1) the established price for the crop, for com9 modities covered under section 101;

10 (2) the basic county loan rate for the crop (or

11 a comparable price if there is no current basic coun12 ty loan rate), for commodities covered under section

13 102;

14 (3) the payment level under section 103(a)(3),

15 for commodities covered by section 103; and

16 (4) the payment level under section 104(a)(2),

17 for commodities covered under section 104.

18 (d) DETERMINATION OF PAYMENT.—The amount of

19 payment to a producer under this section shall be deter20 mined by multiplying the payment rate established under

21 subsection (c) by the portion of the actual harvested crop

22 on the farm of the producer that is reduced in quality by

23 the natural disaster in 1992 or 1993, as determined by

24 the Secretary.
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1 SEC. 106. EFFECT OF FEDERAL CROP INSURANCE PAY2 MENTS.

3 In the case of producers on a farm who obtained crop

4 insurance for the 1993 crop of a commodity under the

5 Federal Crop Insurance Act (7 U.S.C. 1501 et seq.), the

6 Secretary shall reduce the amount of payments made

7 available under this subtitle for the crop to the extent that

8 the amount determined by adding the net amount of crop

9 insurance indemnity payment (gross indemnity less pre10 mium paid) received by the producers for the deficiency

11 in the production of the crop and the disaster payment

12 determined in accordance with this subtitle for the crop

13 exceeds the amount determined by multiplying—

14 (1) 100 percent of the greater of—

15 (A) the yield used for the calculation of

16 disaster payments made under this subtitle for

17 the crop; or

18 (B) the crop insurance yield for the crop;

19 by

20 (2) the sum of the acreage of the crop planted

21 to harvest and the acreage for which prevented

22 planting credit is approved by the Secretary (or, in

23 the case of disaster payments under section 101, the

24 eligible acreage established under sections 101(a)(1)

25 and 101(a)(2)(A)); by
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1 (3)(A) in the case of producers who participated

2 in a production adjustment program for the 1993

3 crop of wheat, feed grains, upland cotton, extra long

4 staple cotton, or rice, the established price for the

5 1993 crop of the commodity;

6 (B) in the case of producers who did not par7 ticipate in a production adjustment program for the

8 1993 crop of wheat, feed grains, upland cotton,

9 extra long staple cotton, or rice, the basic county

10 loan rate (or a comparable price, as determined by

11 the Secretary, if there is no current basic county

12 loan rate) for the 1993 crop of the commodity;

13 (C) in the case of producers of sugar beets, sug14 arcane, peanuts, or tobacco, the payment level for

15 the commodity established under section 103(a)(3);

16 and

17 (D) in the case of producers of soybeans or a

18 nonprogram crop (as defined in section 104(d)(1)),

19 the simple average price received by producers of the

20 commodity, as determined by the Secretary, during

21 the marketing years for the immediately preceding 5

22 crops of the commodity, excluding the year in which

23 the average price was the highest and the year in

24 which the average price was the lowest in the period.
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1 SEC. 107. CROP INSURANCE COVERAGE FOR THE 1994 AND

2 1995 CROPS.

3 (a) REQUIREMENT.—Subject to the limitations under

4 subsection (b), producers on a farm, to be eligible to re5 ceive a disaster payment under this subtitle, an emergency

6 loan under subtitle C of the Consolidated Farm and Rural

7 Development Act (7 U.S.C. 1961 et seq.) for crop losses

8 due to damaging weather or related condition in 1992 or

9 1993, or forgiveness of the repayment of advance defi10 ciency payments under section 101(b), shall agree to ob11 tain multiperil crop insurance under the Federal Crop In12 surance Act (7 U.S.C. 1501 et seq.) for each of the 1994

13 and 1995 crops of the commodity for which the payment,

14 loan, or forgiveness is sought.

15 (b) LIMITATIONS.—Producers on a farm shall not be

16 required to agree to obtain crop insurance under sub17 section (a) for a commodity—

18 (1) where, or if, crop insurance coverage is not

19 available to the producers for the commodity for

20 which the payment, loan, or forgiveness is sought;

21 (2) if the annual premium rate of the producers

22 for the crop insurance is an amount greater than

23 125 percent of the average premium rate for insur24 ance on the commodity for the 1993 crop in the

25 county in which the producers are located;
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1 (3) in any case in which the annual premium of

2 the producers for the crop insurance is an amount

3 greater than 25 percent of the amount of the pay4 ment, loan, or forgiveness sought;

5 (4) if the producers can establish by appeal to

6 the county committee established under section 8(b)

7 of the Soil Conservation and Domestic Allotment

8 Act (16 U.S.C. 590(b)), or to the county committee

9 established under section 332 of the Consolidated

10 Farm and Rural Development Act (7 U.S.C. 1982),

11 as appropriate, that the purchase of crop insurance

12 would impose an undue financial hardship on the

13 producers and that a waiver of the requirement to

14 obtain crop insurance should, in the discretion of the

15 county committee, be granted; or

16 (5) if the disaster payment or forgiveness of re17 payment of advance deficiency payments arises from

18 conditions that prevent planting, except that this

19 paragraph shall not apply if the Federal Crop Insur20 ance Corporation offers a policy providing the same

21 coverage in terms of yields and prices for the risk

22 of prevented planting as the Corporation does for

23 other perils covered in the Corporation policy.

24 (c) IMPLEMENTATION.—
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1 (1) COUNTY COMMITTEES.—The Secretary shall

2 ensure (acting through the county committees estab3 lished under section 8(b) of the Soil Conservation

4 and Domestic Allotment Act and located in the

5 counties in which the assistance programs provided

6 for under sections 101 through 105 are carried out

7 and through the county committees established

8 under section 332 of the Consolidated Farm and

9 Rural Development Act in counties in which emer10 gency loans, as described in subsection (a), are made

11 available) that producers who apply for assistance,

12 as described in subsection (a), obtain multiperil crop

13 insurance as required under this section.

14 (2) OTHER SOURCES.—Each producer who is

15 subject to the requirements of this section may com16 ply with the requirements by providing evidence of

17 multiperil crop insurance coverage from sources

18 other than through the county committee office, as

19 approved by the Secretary.

20 (3) COMMISSIONS.—The Secretary shall provide

21 by regulation for a reduction in the commissions

22 paid to private insurance agents, brokers, or compa23 nies on crop insurance contracts entered into under

24 this section sufficient to reflect that the insurance
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1 contracts principally involve only a servicing function

2 to be performed by the agent, broker, or company.

3 (d) REPAYMENT OF BENEFITS.—Notwithstanding

4 any other provision of law, if (prior to the end of the 1994

5 crop year for the commodity involved) the crop insurance

6 coverage required of the producer under this section is

7 canceled by the producer, the producer—

8 (1) shall make immediate repayment to the Sec9 retary of any disaster payment or forgiven advance

10 deficiency payment that the producer otherwise is

11 required to repay; and

12 (2) shall become immediately liable for full re13 payment of all principal and interest outstanding on

14 any emergency loan described in subsection (a).

15 SEC. 108. CROPS HARVESTED FOR FORAGE USES.

16 Not later than 15 days after the date of enactment

17 of this Act, the Secretary shall announce the terms and

18 conditions by which producers on a farm may establish

19 a 1993 yield with respect to crops that will be harvested

20 for silage and other forage uses.

21 SEC. 109. PAYMENT LIMITATIONS.

22 (a) LIMITATION.—Subject to subsections (b) and (c),

23 the total amount of payments that a person shall be enti24 tled to receive under one or more of the programs estab25 lished under this subtitle may not exceed $100,000.
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1 (b) NO DOUBLE BENEFITS.—No person may receive

2 disaster payments under this subtitle to the extent that

3 the person receives a livestock emergency benefit for lost

4 feed production in 1993 under section 606 of the Agricul5 tural Act of 1949 (7 U.S.C. 1471d).

6 (c) COMBINED LIMITATION.—

7 (1) IN GENERAL.—No person may receive any

8 payment under this subtitle or benefit under title VI

9 of the Agricultural Act of 1949 (7 U.S.C. 1471 et

10 seq.) for livestock emergency losses suffered in 1993

11 if the payment or benefit will cause the combined

12 total amount of the payments and benefits received

13 by the person to exceed $100,000.

14 (2) ELECTION.—If a person is subject to para15 graph (1), the person may elect (subject to the bene16 fits limitations under section 609 of the Agricultural

17 Act of 1949 (7 U.S.C. 1471g)) whether to receive

18 the $100,000 in the payments, or the livestock emer19 gency benefits (not to exceed $50,000), or a com20 bination of payments and benefits specified by the

21 person.

22 (d) REGULATIONS.—The Secretary shall issue regu23 lations—

24 (1) defining the term ‘‘person’’ for the purposes

25 of this section and section 141, which shall conform,
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1 to the extent practicable, to the regulations defining

2 the term ‘‘person’’ issued under section 1001 of the

3 Food Security Act of 1985 (7 U.S.C. 1308) and

4 chapter 3 of subtitle B of title XXII of the Food,

5 Agriculture, Conservation, and Trade Act of 1990 (7

6 U.S.C. 1421 note); and

7 (2) prescribing such rules as the Secretary de8 termines necessary to ensure a fair and reasonable

9 application of the limitations established under this

10 section.

11 SEC. 110. DE MINIMIS YIELDS.

12 (a) DISASTER PAYMENTS.—

13 (1) IN GENERAL.—The Secretary shall deter14 mine a de minimis yield for each crop eligible for re15 duced yield disaster payments under this subtitle.

16 (2) LEVEL.—The de minimis yield shall be set

17 at a level that will minimize any incentive provided

18 by the prospect of disaster payments to abandon

19 crops that have a value that exceeds the cost of har20 vesting. The de minimis yield may not be less than

21 the quantity of production that, when valued at then

22 current market prices, equals the average cost of

23 harvesting the crop, as determined by the Secretary.

24 (3) ACTUAL YIELD LESS THAN DE MINIMIS

25 YIELD.—A producer with an actual yield for a crop
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1 that is equal to or less than the de minimis yield for

2 the crop shall be considered as having an actual

3 yield of zero for the purpose of calculating any re4 duced yield disaster payments for the crop under

5 this subtitle.

6 (b) CROP INSURANCE.—If the actual yield for a crop

7 on a farm is equal to or less than the de minimis yield

8 for the crop determined by the Secretary pursuant to sub9 section (a), neither the Federal Crop Insurance Corpora10 tion (including an agent or employee of the Corporation),

11 nor a company reinsured by the Federal Crop Insurance

12 Corporation (including an agent or employee of the com13 pany), may require the destruction of a portion of the crop

14 as a condition for making a full crop loss indemnity pay15 ment to a producer under the terms of a valid contract

16 of insurance on the crop.

17 SEC. 111. SUBSTITUTION OF CROP INSURANCE PROGRAM

18 YIELDS.

19 (a) IN GENERAL.—Notwithstanding any other provi20 sion of this subtitle, the Secretary may permit each eligible

21 producer (as defined in subsection (d)) of a 1993 crop of

22 a commodity who has obtained multiperil crop insurance

23 for the crop (or, as provided in subsection (c), who ob24 tained multiperil crop insurance for the 1992 crop of the

25 producer of the commodity) under the Federal Crop Insur-
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1 ance Act (7 U.S.C. 1501 et seq.) to substitute, at the dis2 cretion of the producer, the crop insurance yield for the

3 crop, as established under such Act, for the farm yield

4 otherwise assigned to the producer under this subtitle, for

5 the purposes of determining the eligibility of the producer

6 for a disaster payment on the 1993 crop under this sub7 title and the amount of the payment.

8 (b) ADJUSTMENT OF ADVANCE DEFICIENCY PAY9 MENTS.—

10 (1) IN GENERAL.—Notwithstanding any other

11 provision of this subtitle, if an eligible producer of

12 wheat, feed grains, upland cotton, extra long staple

13 cotton, or rice elects to substitute yields for the

14 1993 crop of the producer under subsection (a), the

15 eligibility of the producer for a waiver or repayment

16 of an advance deficiency payment on the crop under

17 this subtitle shall be adjusted as provided in para18 graph (2).

19 (2) QUANTITY.—The quantity of production of

20 the crop on which the producer otherwise would be

21 eligible for waiver of repayment of advance defi22 ciency payments under this subtitle shall be reduced

23 by a quantity of production equal to the difference

24 between—
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•S 1263 IS

1 (A) the quantity of production eligible for

2 disaster payments under this subtitle using a

3 substituted yield under this section; and

4 (B) the quantity of production that would

5 have been eligible for disaster payments using

6 the farm program payment yield otherwise as7 signed to the producer under this subtitle.

8 (c) MULTIPERIL CROP INSURANCE NOT AVAIL9 ABLE.—A producer may use the crop insurance yield for

10 the 1992 crop of the producer of a commodity for purposes

11 of substituting yields under subsection (a) if the producer

12 demonstrates to the Secretary that, through no fault of

13 the producer, multiperil crop insurance under the Federal

14 Crop Insurance Act was not made available to the pro15 ducer for the 1993 crop of the producer of the commodity.

16 (d) DEFINITION OF ELIGIBLE PRODUCER.—As used

17 in this section, the term ‘‘eligible producer’’ means a pro18 ducer of the 1993 crop of wheat, feed grains, upland cot19 ton, extra long staple cotton, rice, or soybeans.

20 SEC. 112. PLANTING OILSEEDS ON PREVENTED PLANTING

21 ACREAGE.

22 If the producers on a farm are prevented from plant23 ing a program crop because of damaging weather or relat24 ed condition in 1993 and file with the Secretary for pre25 vented planting credit to preserve the program crop base
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1 of the producers for future crop years, the producers shall

2 be permitted to place under a price support loan a sub3 stitute oilseed crop grown on the prevented planting acre4 age.

5 Subtitle B—Orchards

6 SEC. 121. DEFINITION OF ELIGIBLE ORCHARDIST.

7 As used in this subtitle, the term ‘‘eligible orchardist’’

8 means a person who produces annual crops from trees for

9 commercial purposes and owns 500 acres or less of the

10 trees.

11 SEC. 122. ELIGIBILITY.

12 (a) LOSS.—Subject to the limitation in subsection

13 (b), the Secretary shall provide assistance, as specified in

14 section 123, to eligible orchardists that planted trees for

15 commercial purposes but lost the trees as a

16 result of freeze, earthquake, or related condition in 1993,

17 as determined by the Secretary.

18 (b) LIMITATION.—An eligible orchardist shall qualify

19 for assistance under subsection (a) only if the tree mortal20 ity of the orchardist, as a result of the natural disaster,

21 exceeds 35 percent (adjusted for normal mortality).

22 SEC. 123. ASSISTANCE.

23 The assistance provided by the Secretary to eligible

24 orchardists for losses described in section 122 shall consist

25 of—
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1 (1) reimbursement of 65 percent of the cost of

2 replanting trees lost because of freeze, earthquake,

3 or related condition in 1993 in excess of 35 percent

4 mortality (adjusted for normal mortality); or

5 (2) at the discretion of the Secretary, sufficient

6 seedlings to reestablish the stand.

7 SEC. 124. LIMITATION ON ASSISTANCE.

8 (a) IN GENERAL.—The total amount of payments

9 that a person shall be entitled to receive under this subtitle

10 may not exceed $25,000, or an equivalent value in tree

11 seedlings.

12 (b) REGULATIONS.—The Secretary shall issue regula13 tions—

14 (1) defining the term ‘‘person’’ for the purposes

15 of this subtitle, which shall conform, to the extent

16 practicable, to the regulations defining the term

17 ‘‘person’’ issued under section 1001 of the Food Se18 curity Act of 1985 (7 U.S.C. 1308) and chapter 3

19 of subtitle B of title XXII of the Food, Agriculture,

20 Conservation, and Trade Act of 1990 (7 U.S.C.

21 1421 note); and

22 (2) prescribing such rules as the Secretary de23 termines necessary to ensure a fair and reasonable

24 application of the limitation established under this

25 section.
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1 SEC. 125. DUPLICATIVE PAYMENTS.

2 The Secretary shall establish guidelines to ensure

3 that no person receives duplicative payments under this

4 subtitle and the forestry incentives program, agricultural

5 conservation program, or other Federal program.

6 Subtitle C—Forest Crops

7 SEC. 131. DEFINITION OF ELIGIBLE TREE FARMER.

8 As used in this subtitle, the term ‘‘eligible tree farm9 er’’ means a person who grows trees for harvest for com10 mercial purposes and owns 1,000 acres or less of the trees.

11 SEC. 132. ELIGIBILITY.

12 (a) LOSS.—Subject to the limitation in subsection

13 (b), the Secretary shall provide assistance, as specified in

14 section 133, to eligible tree farmers that planted tree seed15 lings in 1992 or 1993 for commercial purposes but lost

16 the seedlings as a result of drought, earthquake, or related

17 condition in 1993, as determined by the Secretary.

18 (b) LIMITATION.—An eligible tree farmer shall qual19 ify for assistance under subsection (a) only if the tree

20 seedling mortality of the tree farmer, as a result of the

21 natural disaster, exceeds 35 percent (adjusted for normal

22 mortality).

23 SEC. 133. ASSISTANCE.

24 The assistance provided by the Secretary to eligible

25 tree farmers for losses described in section 132 shall con26 sist of—
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•S 1263 IS

1 (1) reimbursement of 65 percent of the cost of

2 replanting seedlings lost because of drought, earth3 quake, or related condition in 1993 in excess of 35

4 percent mortality (adjusted for normal mortality); or

5 (2) at the discretion of the Secretary, sufficient

6 tree seedlings to reestablish the stand.

7 SEC. 134. LIMITATION ON ASSISTANCE.

8 (a) IN GENERAL.—The total amount of payments

9 that a person shall be entitled to receive under this subtitle

10 may not exceed $25,000, or an equivalent value in tree

11 seedlings.

12 (b) REGULATIONS.—The Secretary shall issue regula13 tions—

14 (1) defining the term ‘‘person’’ for the purposes

15 of this subtitle, which shall conform, to the extent

16 practicable, to the regulations defining the term

17 ‘‘person’’ issued under section 1001 of the Food Se18 curity Act of 1985 (7 U.S.C. 1308) and chapter 3

19 of subtitle B of title XXII of the Food, Agriculture,

20 Conservation, and Trade Act of 1990 (7 U.S.C.

21 1421 note); and

22 (2) prescribing such rules as the Secretary de23 termines necessary to ensure a fair and reasonable

24 application of the limitation established under this

25 section.
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1 SEC. 135. DUPLICATIVE PAYMENTS.

2 The Secretary shall establish guidelines to ensure

3 that no person receives duplicative payments under this

4 subtitle and the forestry incentives program, agricultural

5 conservation program, or other Federal program.

6 Subtitle D—Administrative

7 Provisions

8 SEC. 141. INELIGIBILITY.

9 (a) GENERAL RULE.—A person who has qualifying

10 gross revenues in excess of $2,000,000 annually, as deter11 mined by the Secretary, shall not be eligible to receive any

12 disaster payment or other benefits under this title.

13 (b) QUALIFYING GROSS REVENUES.—As used in this

14 section, the term ‘‘qualifying gross revenues’’ means—

15 (1) if a majority of the annual gross revenues

16 of the person are received from farming, ranching,

17 and forestry operations, the gross revenue from the

18 farming, ranching, and forestry operations of the

19 person; and

20 (2) if less than a majority of the annual gross

21 revenues of the person are received from farming,

22 ranching, and forestry operations, the gross revenue

23 of the person from all sources.

24 SEC. 142. TIMING AND MANNER OF ASSISTANCE.

25 (a) TIMING OF ASSISTANCE.—
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1 (1) ASSISTANCE MADE AVAILABLE AS SOON AS

2 PRACTICABLE.—Subject to paragraph (2), the Sec3 retary shall make disaster assistance available under

4 this title as soon as practicable after the date on

5 which funds are made available to carry out this

6 title.

7 (2) COMPLETED APPLICATION.—No payment or

8 benefit provided under this title shall be payable or

9 due until such time as a completed application for

10 a crop of a commodity has been approved.

11 (b) MANNER.—The Secretary may make payments

12 available under this title in the form of cash, commodities,

13 or commodity certificates, as determined by the Secretary.

14 SEC. 143. COMMODITY CREDIT CORPORATION.

15 (a) USE.—The Secretary shall use the funds, facili16 ties, and authorities of the Commodity Credit Corporation

17 in carrying out this title.

18 (b) EXISTING AUTHORITY.—The authority provided

19 by this title shall be in addition to, and not in place of,

20 any authority granted to the Secretary or the Commodity

21 Credit Corporation under any other provision of law.

22 SEC. 144. REGULATIONS.

23 The Secretary or the Commodity Credit Corporation,

24 as appropriate, shall issue regulations to implement this

25 title as soon as practicable after the date of enactment
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1 of this Act, without regard to the requirement for notice

2 and public participation in rulemaking prescribed in sec3 tion 553 of title 5, United States Code, or in any directive

4 of the Secretary.

5 SEC. 145. APPLICATION OF SUBTITLE.

6 Except as otherwise provided in this title, this subtitle

7 shall apply to subtitles A, B, and C.

8 TITLE II—RURAL BUSINESSES

9 SEC. 201. DISASTER ASSISTANCE FOR RURAL BUSINESS EN10 TERPRISES.

11 (a) LOAN GUARANTEES.—The Secretary shall guar12 antee loans made in rural areas—

13 (1) to public, private, or cooperative organiza14 tions, to Indian tribes on Federal and State reserva15 tions or other Federally recognized Indian tribal

16 groups, or to any other business entities to assist the

17 organizations, tribes, or entities in alleviating the

18 distress caused to the organizations, tribes, or enti19 ties, directly or indirectly, by damaging weather or

20 related condition in 1992 or 1993; and

21 (2) to organizations, tribes, or entities described

22 in paragraph (1) that refinance or restructure debt

23 as a result of losses incurred, directly or indirectly,

24 because of damaging weather or related condition in

25 1992 or 1993.
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1 (b) ELIGIBLE LOANS.—To be eligible for a loan guar2 antee under this section, a loan shall be a loan made by

3 a Federal or State chartered bank, savings and loan asso4 ciation, cooperative lending agency, insurance company, or

5 other legally organized lending agency.

6 (c) LOAN GUARANTEE LIMITS.—

7 (1) PERCENTAGE OF PRINCIPAL AND INTER8 EST.—No guarantee under this section shall exceed

9 90 percent of the principal and interest amount of

10 the loan or $500,000, whichever is less.

11 (2) TOTAL AMOUNT.—The total amount of loan

12 guarantees under this section shall not exceed

13 $200,000,000.

14 (d) USE OF THE RURAL DEVELOPMENT INSURANCE

15 FUND.—The Secretary shall use the Rural Development

16 Insurance Fund established under section 309A of the

17 Consolidated Farm and Rural Development Act (7 U.S.C.

18 1929a) for the purpose of discharging the obligations of

19 the Secretary under this section.

20 TITLE III—DISASTER CREDIT

21 AND FORBEARANCE

22 SEC. 301. EMERGENCY LOANS.

23 Section 321(b) of the Consolidated Farm and Rural

24 Development Act (7 U.S.C. 1961(b)) shall not apply to

25 a person who otherwise would be eligible for an emergency
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1 loan under subtitle C of such Act, if the eligibility is the

2 result of damage to an annual crop planted for harvest

3 in 1993.

4 SEC. 302. FARM OPERATING LOANS.

5 (a) DIRECT CREDIT.—To the maximum extent prac6 ticable, the Secretary shall ensure that direct operating

7 loans made or insured under subtitle B of the Consoli8 dated Farm and Rural Development Act (7 U.S.C. 1941

9 et seq.) for 1994 crop production are made available to

10 farmers and ranchers suffering major losses due to dam11 aging weather or related condition in 1992 or 1993 as au12 thorized under laws in existence on the date of enactment

13 of this Act, and under regulations of the Secretary, that

14 promote the objective of enabling farmers and ranchers

15 to stay in business.

16 (b) LOAN GUARANTEES.—

17 (1) IN GENERAL.—Notwithstanding any other

18 provision of law, the Secretary shall make available

19 for fiscal year 1994 guarantees to commercial or co20 operative lenders for loans under subtitle B of the

21 Consolidated Farm and Rural Development Act, to

22 refinance or reamortize 1993 operating loans, or

23 1993 or 1994 installments due and payable on real

24 estate debt, farm equipment or building debt (in25 cluding debt for a storage facility), livestock loan, or
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1 other operating debt, of farmers and ranchers that

2 otherwise cannot be repaid due to major losses in3 curred by the farmers or ranchers because of dam4 aging weather or related condition in 1992 or 1993.

5 (2) REAMORTIZATION.—Each loan guaranteed

6 because of damaging weather or related condition in

7 1992 or 1993 using funds made available for fiscal

8 year 1994, as described in paragraph (1), shall con9 tain terms and conditions governing the

10 reamortization of the debt of the farmer or rancher

11 that will provide the farmer or rancher a reasonable

12 opportunity to continue to receive new operating

13 credit while repaying the guaranteed loan, as deter14 mined by the Secretary.

15 (3) ELIGIBILITY.—Notwithstanding any other

16 provision of law, a person eligible to receive pay17 ments under subtitle A of title I shall be eligible for

18 a guarantee, in accordance with this subsection, for

19 a loan made to the person by a commercial or coop20 erative lender to refinance installment payments that

21 are or become due and payable during 1993 or

22 1994, as described in paragraph (1), except that, to

23 be eligible to have the loan guaranteed, the person

24 shall otherwise—
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1 (A) be current in the obligation of the per2 son to the commercial or cooperative lender

3 that agrees to accept the guarantee in consider4 ation of allowing the person to make the 1993

5 or 1994 payment or installment over a period

6 of time not to exceed 6 years from the original

7 due date of the payment or installment; and

8 (B) meet the criteria for guaranteed loan

9 borrowers under subtitle B of the Consolidated

10 Farm and Rural Development Act established

11 by the Secretary.

12 (c) USE OF AGRICULTURAL CREDIT INSURANCE

13 FUND.—For purposes of providing guaranteed loans in

14 accordance with subsection (b), in addition to funds other15 wise available, the Secretary may use any funds available

16 from the Agricultural Credit Insurance Fund for fiscal

17 years 1993 or 1994 for emergency insured and guaranteed

18 loans under subtitle C of the Consolidated Farm and

19 Rural Development Act (7 U.S.C. 1961 et seq.) to meet

20 the needs resulting from damaging weather or related con21 dition in 1992 or 1993, except that funds available from

22 the Fund first shall be used to satisfy the level of assist23 ance estimated by the Secretary to meet the needs of per24 sons eligible for emergency disaster loans.
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