II

106TH CONGRESS

2D SESSION S. 2039

To amend the Consolidated Farm and Rural Development Act to authorize

the Secretary of Agriculture to provide emergency loans to poultry producers to rebuild chicken houses destroyed by disasters.

IN THE SENATE OF THE UNITED STATES

FEBRUARY 8, 2000

Mr. HUTCHINSON introduced the following bill; which was read twice and

referred to the Committee on Agriculture, Nutrition, and Forestry

A BILL

To amend the Consolidated Farm and Rural Development

Act to authorize the Secretary of Agriculture to provide

emergency loans to poultry producers to rebuild chicken

houses destroyed by disasters.

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

3 SECTION 1. EMERGENCY LOANS FOR POULTRY FARMERS.

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

5 Development Act (7 U.S.C. 1961(b)) is amended by add6 ing at the end the following:

7 ‘‘(3) LOANS TO POULTRY FARMERS.—

8 ‘‘(A) INABILITY TO OBTAIN INSURANCE.—
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•S 2039 IS

1 ‘‘(i) IN GENERAL.—Notwithstanding

2 any other provision of this subtitle, the

3 Secretary may make a loan to a poultry

4 farmer under this subtitle to cover the loss

5 of a chicken house for which the farmer

6 did not have hazard insurance at the time

7 of the loss, if the farmer—

8 ‘‘(I) applied for, but was unable,

9 to obtain hazard insurance for the

10 chicken house;

11 ‘‘(II) uses the loan to rebuild the

12 chicken house in accordance with in13 dustry standards in effect on the date

14 the farmer submits an application for

15 the loan (referred to in this paragraph

16 as ‘current industry standards’);

17 ‘‘(III) obtains, for the term of

18 the loan, hazard insurance for the full

19 market value of the chicken house;

20 and

21 ‘‘(IV) meets the other require22 ments for the loan under this subtitle,

23 other than (if the Secretary finds that

24 the applicant’s farming operations

25 have been substantially affected by a
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•S 2039 IS

1 major disaster or emergency des2 ignated by the President under the

3 Robert T. Stafford Disaster Relief

4 and Emergency Assistance Act (42

5 U.S.C. 5121 et seq.)) the requirement

6 that an applicant not be able to obtain

7 sufficient credit elsewhere.

8 ‘‘(ii) AMOUNT.—The amount of a loan

9 made to a poultry farmer under clause (i)

10 shall be an amount that will allow the

11 farmer to rebuild the chicken house in ac12 cordance with current industry standards.

13 ‘‘(B) LOANS TO COMPLY WITH CURRENT

14 INDUSTRY STANDARDS.—

15 ‘‘(i) IN GENERAL.—Notwithstanding

16 any other provision of this subtitle, the

17 Secretary may make a loan to a poultry

18 farmer under this subtitle to cover the loss

19 of a chicken house for which the farmer

20 had hazard insurance at the time of the

21 loss, if—

22 ‘‘(I) the amount of the hazard in23 surance is less than the cost of re24 building the chicken house in accord25 ance with current industry standards;
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•S 2039 IS

1 ‘‘(II) the farmer uses the loan to

2 rebuild the chicken house in accord3 ance with current industry standards;

4 ‘‘(III) the farmer obtains, for the

5 term of the loan, hazard insurance for

6 the full market value of the chicken

7 house; and

8 ‘‘(IV) the farmer meets the other

9 requirements for the loan under this

10 subtitle, other than (if the Secretary

11 finds that the applicant’s farming op12 erations have been substantially af13 fected by a major disaster or emer14 gency designated by the President

15 under the Robert T. Stafford Disaster

16 Relief and Emergency Assistance Act

17 (42 U.S.C. 5121 et seq.)) the require18 ment that an applicant not be able to

19 obtain sufficient credit elsewhere.

20 ‘‘(ii) AMOUNT.—The amount of a loan

21 made to a poultry farmer under clause (i)

22 shall be the difference between—

23 ‘‘(I) the amount of the hazard in24 surance obtained by the farmer; and
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1 ‘‘(II) the cost of rebuilding the

2 chicken house in accordance with cur3 rent industry standards.’’.

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