I

105TH CONGRESS

2D SESSION H. R. 4747

To respond to the needs of United States farmers experiencing exceptionally

low commodity prices and extensive crop failures.

IN THE HOUSE OF REPRESENTATIVES

OCTOBER 8, 1998

Mr. MINGE (for himself and Mr. POMEROY) introduced the following bill;

which was referred to the Committee on Agriculture, and in addition to

the Committee on the Budget, for a period to be subsequently determined

by the Speaker, in each case for consideration of such provisions as fall

within the jurisdiction of the committee concerned

A BILL

To respond to the needs of United States farmers experiencing exceptionally low commodity prices and extensive

crop failures.

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 ‘‘Emergency Agricultural Response Act of 1998’’.

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

7 this Act is as follows:

Sec. 1. Short title; table of contents.
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Sec. 2. Use of disaster reserve authority to provide disaster assistance to certain producers.

Sec. 3. Increase in loan rates for marketing assistance loans for certain crops.

Sec. 4. Extension of marketing assistance loans.

Sec. 5. Reinstatement of farmer-owned reserve program.

Sec. 6. Strategic food reserve of loan commodities.

Sec. 7. Improved delivery of Farm Service Agency services at local and area

level.

Sec. 8. Temporary conservation reserve to respond to disease infestations.

Sec. 9. Special crop insurance rules for counties subject to disaster declaration.

Sec. 10. Doubling of budget authority and appropriations for direct loan, loan

guarantee, and interest rate reduction programs for fiscal year

1999.

1 SEC. 2. USE OF DISASTER RESERVE AUTHORITY TO PRO2 VIDE DISASTER ASSISTANCE TO CERTAIN

3 PRODUCERS.

4 (a) PROVISION OF ASSISTANCE.—Section 813(a) of

5 the Agricultural Act of 1970 (7 U.S.C. 1427a(a)) is

6 amended by adding at the end the following:

7 ‘‘The Secretary shall use funds appropriated for the

8 purposes of this section to make cash payments to agricul9 tural producers to augment crop insurance benefits for the

10 purpose of alleviating distress caused by multiple year

11 crop losses.’’

12 (b) APPROPRIATIONS.—There is hereby appropriated,

13 out of any money in the Treasury not otherwise appro14 priated, $1,200,000,000 for the reserve established under

15 section 813 of the Agricultural Act of 1970 (7 U.S.C.

16 1427a).

17 (c) DESIGNATION OF EMERGENCY.—The amount ap18 propriated under subsection (b) shall be available only to

19 the extent that the President submits to Congress an offi-
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1 cial budget request for a specific dollar amount that in2 cludes designation of the entire amount of the request as

3 an emergency requirement for the purposes of the Bal4 anced Budget and Emergency Deficit Control Act of 1985

5 (2 U.S.C. 900 et seq.). The entire amount of the funds

6 is designated by Congress as an emergency requirement

7 under section 251(b)(2)(A) of the Balanced Budget and

8 Emergency Deficit Control Act of 1985 (2 U.S.C.

9 901(b)(2)(A)).

10 SEC. 3. INCREASE IN LOAN RATES FOR MARKETING ASSIST11 ANCE LOANS FOR CERTAIN CROPS.

12 (a) WHEAT.—Subsection (a) of section 132 of the

13 Agricultural Market Transition Act (7 U.S.C. 7232) is

14 amended by striking paragraph (1) and inserting the fol15 lowing new paragraph:

16 ‘‘(1) LOAN RATE.—Subject to paragraph (2),

17 the loan rate for a marketing assistance loan under

18 section 131 for wheat shall be equal to the greater

19 of—

20 ‘‘(A) 85 percent of the simple average

21 price received by producers of wheat, as deter22 mined by the Secretary, during the marketing

23 years for the immediately preceding 5 crops of

24 wheat, excluding the year in which the average
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1 price was the highest and the year in which the

2 average price was the lowest in the period; and

3 ‘‘(B) 85 percent of the simple average

4 price received by producers of wheat, as deter5 mined by the Secretary, during the 1994

6 through 1998 marketing years, excluding the

7 year in which the average price was the highest

8 and the year in which the average price was the

9 lowest in the period.’’.

10 (b) FEED GRAINS.—Subsection (b) of such section

11 is amended by striking paragraph (1) and inserting the

12 following new paragraph:

13 ‘‘(1) LOAN RATE FOR CORN.—Subject to para14 graph (2), the loan rate for a marketing assistance

15 loan under section 131 for corn shall be equal to the

16 greater of—

17 ‘‘(A) 85 percent of the simple average

18 price received by producers of corn, as deter19 mined by the Secretary, during the marketing

20 years for the immediately preceding 5 crops of

21 corn, excluding the year in which the average

22 price was the highest and the year in which the

23 average price was the lowest in the period; and

24 ‘‘(B) 85 percent of the simple average

25 price received by producers of corn, as deter-
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1 mined by the Secretary, during the 1994

2 through 1998 marketing years, excluding the

3 year in which the average price was the highest

4 and the year in which the average price was the

5 lowest in the period.’’.

6 (c) UPLAND COTTON.—Subsection (c)(2) of such sec7 tion is amended by striking ‘‘or more than $0.5192 per

8 pound’’.

9 (d) EXTRA LONG STAPLE COTTON.—Subsection (d)

10 of such section is amended to read as follows:

11 ‘‘(d) EXTRA LONG STAPLE COTTON.—The loan rate

12 for a marketing assistance loan under section 131 for

13 extra long staple cotton shall be equal to the greater of—

14 ‘‘(1) 85 percent of the simple average price re15 ceived by producers of extra long staple cotton, as

16 determined by the Secretary, during 3 years of the

17 5-year period ending July 31 of the year preceding

18 the year in which the crop is planted, excluding the

19 year in which the average price was the highest and

20 the year in which the average price was the lowest

21 in the period; and

22 ‘‘(2) 85 percent of the simple average price re23 ceived by producers of extra long staple cotton, as

24 determined by the Secretary, during the 1994

25 through 1998 marketing years, excluding the year in
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1 which the average price was the highest and the year

2 in which the average price was the lowest in the pe3 riod.’’.

4 (e) RICE.—Subsection (e) of such section is amended

5 to read as follows:

6 ‘‘(e) RICE.—The loan rate for a marketing assistance

7 loan under section 131 for rice shall be equal to the great8 er of—

9 ‘‘(1) 85 percent of the simple average price re10 ceived by producers of rice, as determined by the

11 Secretary, during the marketing years for the imme12 diately preceding 5 crops of rice, excluding the year

13 in which the average price was the highest and the

14 year in which the average price was the lowest in the

15 period; and

16 ‘‘(2) 85 percent of the simple average price re17 ceived by producers of rice, as determined by the

18 Secretary, during the 1994 through 1998 marketing

19 years, excluding the year in which the average price

20 was the highest and the year in which the average

21 price was the lowest in the period; and

22 ‘‘(3) $6.50 per hundredweight.’’.

23 (f) OILSEEDS.—Subsection (f) of such section is

24 amended by striking paragraphs (1) and (2) and inserting

25 the following new paragraphs:
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1 ‘‘(1) SOYBEANS.—The loan rate for a market2 ing assistance loan under section 131 for soybeans

3 shall be equal to the greater of—

4 ‘‘(A) 85 percent of the simple average

5 price received by producers of soybeans, as de6 termined by the Secretary, during the market7 ing years for the immediately preceding 5 crops

8 of soybeans, excluding the year in which the av9 erage price was the highest and the year in

10 which the average price was the lowest in the

11 period; and

12 ‘‘(B) 85 percent of the simple average

13 price received by producers of soybeans, as de14 termined by the Secretary, during the 1994

15 through 1998 marketing years, excluding the

16 year in which the average price was the highest

17 and the year in which the average price was the

18 lowest in the period.

19 ‘‘(2) SUNFLOWER SEED, CANOLA, RAPESEED,

20 SAFFLOWER, MUSTARD SEED, AND FLAXSEED.—The

21 loan rate for a marketing assistance loan under sec22 tion 131 for sunflower seed, canola, rapeseed, saf23 flower, mustard seed, and flaxseed, individually,

24 shall be equal to the greater of—
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1 ‘‘(A) 85 percent of the simple average

2 price received by producers of such oilseed, as

3 determined by the Secretary, during the mar4 keting years for the immediately preceding 5

5 crops of such oilseed, excluding the year in

6 which the average price was the highest and the

7 year in which the average price was the lowest

8 in the period; and

9 ‘‘(B) 85 percent of the simple average

10 price received by producers of such oilseed, as

11 determined by the Secretary, during the 1994

12 through 1998 marketing years, excluding the

13 year in which the average price was the highest

14 and the year in which the average price was the

15 lowest in the period.’’.

16 SEC. 4. EXTENSION OF MARKETING ASSISTANCE LOANS.

17 Section 133 of the Agricultural Market Transition

18 Act (7 U.S.C. 7233) is amended by striking subsection

19 (c) and inserting the following:

20 ‘‘(c) EXTENSION.—The Secretary may extend the

21 term of marketing assistance loans made to producers

22 under this subtitle for any loan commodity for a 6-month

23 period if the Secretary determines that the extension will

24 promote the orderly delivery of the loan commodity, mate-
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1 rially reduce program costs to the Government, or result

2 in a significant improvement in income for producers.’’.

3 SEC. 5. REINSTATEMENT OF FARMER-OWNED RESERVE

4 PROGRAM.

5 Section 171(b)(1) of the Agricultural Market Transi6 tion Act (7 U.S.C. 7301(b)(1)) is amended by striking

7 subparagraph (E).

8 SEC. 6. STRATEGIC FOOD RESERVE OF LOAN COMMOD9 ITIES.

10 Subtitle C of the Agricultural Market Transition Act

11 (7 U.S.C. 7231 et seq.) is amended by adding at the end

12 the following new section:

13 ‘‘SEC. 138. STRATEGIC FOOD RESERVE.

14 ‘‘(a) RESERVE REQUIRED.—The Secretary shall

15 build a reserve stock of a loan commodity whenever prices

16 for that commodity fall below 75 percent of the loan rate

17 for marketing assistance loans for that commodity.

18 ‘‘(b) METHODS OF ACQUISITION.—Loan commodities

19 for inclusion in the reserve may be acquired—

20 ‘‘(1) through purchases—

21 ‘‘(A) from producers; or

22 ‘‘(B) in the market, if the Secretary deter23 mines that the purchases will not unduly dis24 rupt the market; or
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1 ‘‘(2) by designation by the Secretary of stocks

2 of loan commodities of the Commodity Credit Cor3 poration.

4 ‘‘(c) RELEASE OF ELIGIBLE COMMODITIES.—The

5 Secretary may release stocks of a loan commodity in the

6 reserve only when there is such a domestic shortage of

7 the loan commodity that—

8 ‘‘(1) widespread concern exists about the supply

9 of affordable food for residents of the United States;

10 and

11 ‘‘(2) prices for the commodity exceed 200 per12 cent of the loan rate for marketing assistance loans

13 for the commodity.

14 ‘‘(d) ADMINISTRATION.—To the maximum extent

15 practicable consistent with the fulfillment of the purposes

16 of this section and the effective and efficient administra17 tion of this section, the Secretary shall use the usual and

18 customary channels, facilities, arrangements, and prac19 tices of trade and commerce to release stocks of a loan

20 commodity maintained in the reserve. The Secretary shall

21 administer the release of stocks from the reserve so as to

22 ensure that the prices received by agricultural producers

23 of that commodity are not depressed as a result of the

24 release.
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1 ‘‘(e) LIMITATION ON TOTAL QUANTITY ACQUIRED.—

2 The Secretary may not acquire for inclusion in the reserve

3 more than 25 percent of the average annual production

4 of a loan commodity.

5 ‘‘(f) MANAGEMENT OF COMMODITIES.—The Sec6 retary shall provide—

7 ‘‘(1) for the management of loan commodities

8 in the reserve, including the selection of storage lo9 cations; and

10 ‘‘(2) for the periodic rotation or replacement of

11 stocks of loan commodities in the reserve to avoid

12 spoilage and deterioration of the commodities.

13 ‘‘(g) USE OF COMMODITY CREDIT CORPORATION.—

14 The funds, facilities, and authorities of the Commodity

15 Credit Corporation shall be used by the Secretary in carry16 ing out this section, except that any restriction applicable

17 to the acquisition, storage, or disposition of commodities

18 owned or controlled by the Commodity Credit Corporation

19 shall not apply.’’.

20 SEC. 7. IMPROVED DELIVERY OF FARM SERVICE AGENCY

21 SERVICES AT LOCAL AND AREA LEVEL.

22 (a) TRANSFER OF FUNDS FOR FISCAL YEAR 1999.—

23 To ensure the prompt response of the Farm Service Agen24 cy during fiscal year 1999 to requests submitted by pro25 ducers, the Secretary of Agriculture may transfer to the
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1 Farm Service Agency from other appropriations or funds

2 available to the agencies or corporations of the Depart3 ment of Agriculture an amount equal to not more than

4 25 percent of the operating budget for that fiscal year of

5 local and area offices of the Farm Service Agency.

6 Amounts transferred under this subsection may be used

7 only for activities at local and area offices of the Farm

8 Service Agency.

9 (b) SUBSEQUENT YEARS.—The Secretary of Agri10 culture shall include in the materials submitted to Con11 gress in support of the budget request for the Department

12 of Agriculture for each fiscal year a certification that the

13 amount requested for the operation of local and area of14 fices of the Farm Service Agency will be sufficient to meet

15 the expected needs of agricultural producers for services.

16 SEC. 8. TEMPORARY CONSERVATION RESERVE TO RE17 SPOND TO DISEASE INFESTATIONS.

18 Subtitle D of title XII of the Food Security Act of

19 1985 (16 U.S.C. 3801 et seq.) is amended by inserting

20 after section 1256 the following new section:

21 ‘‘SEC. 1257. THREE-YEAR CONSERVATION RESERVE FOR

22 DISEASED CROPLANDS.

23 ‘‘(a) RESERVE REQUIRED.—Using the authority pro24 vided in subchapter B, the Secretary shall formulate and

25 carry out the enrollment of lands described in subsection
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1 (b) in a conservation reserve program through the use of

2 contracts to assist owners and operators of such lands to

3 combat plant diseases that have devastated the lands.

4 ‘‘(b) ELIGIBLE LANDS.—The Secretary shall include

5 in the program only those croplands that have been dev6 astated by a plant disease for which effective responses

7 are reasonably anticipated within four years, but are oth8 erwise suitable for the production of crops or livestock.

9 ‘‘(c) TERM OF CONTRACT.—A contract under this

10 section shall have a term of three years.’’.

11 SEC. 9. SPECIAL CROP INSURANCE RULES FOR COUNTIES

12 SUBJECT TO DISASTER DECLARATION.

13 (a) MULTI-PERIL CROP INSURANCE.—For purposes

14 of administering the Federal Crop Insurance Act (7

15 U.S.C. 1501 et seq.) for producers operating in a county

16 described in subsection (c), the Secretary of Agriculture

17 may not—

18 (1) include the producer in any nonstandard

19 classification list on account of the inclusion of the

20 county in a designated disaster area; or

21 (2) determine, without the consent of the pro22 ducer, the actual production history of the producer

23 using production records of any crop year during

24 which the county was included in a designated disas25 ter area.
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1 (b) EXCEPTION.—Subsection (a) shall not apply to

2 a disaster that the Secretary of Agriculture determines is

3 a reoccurring, frequent, and well-known risk of farming

4 in the locale, and the risks cannot reasonably be expected

5 to be controlled or eliminated by crop protection efforts

6 within a 7-year period.

7 (c) COVERED COUNTIES.—This section applies with

8 respect to a county that is included in whole or in part

9 in a designated disaster area.

10 (d) DESIGNATED DISASTER AREA DEFINED.—In

11 this section, the term ‘‘designated disaster area’’ means

12 an area—

13 (1) covered by a Presidential declaration of

14 major disaster issued under section 401 of the Rob15 ert T. Stafford Disaster Relief and Emergency As16 sistance Act (42 U.S.C. 5170) on account of damag17 ing weather or a related condition in the area; or

18 (2) determined to be a disaster area by the Sec19 retary of Agriculture under subpart A of part 1945

20 of title 7, Code of Federal Regulations, on account

21 of damaging weather or a related condition in the

22 area.

23 (e) EFFECTIVE DATE.—This section shall apply be24 ginning with the 1999 crop year for each commodity that
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1 is grown in a covered county and for which multi-peril

2 crop insurance is generally available in the United States.

3 SEC. 10. DOUBLING OF BUDGET AUTHORITY AND APPRO4 PRIATIONS FOR DIRECT LOAN, LOAN GUAR5 ANTEE, AND INTEREST RATE REDUCTION

6 PROGRAMS FOR FISCAL YEAR 1999.

7 (a) BUDGET AUTHORITY.—

8 (1) DIRECT LOAN AND LOAN GUARANTEE PRO9 GRAMS.—Section 346(b)(1)(D) of the Consolidated

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

11 1994(b)(1)(D)) is amended by striking

12 ‘‘$3,325,000,000’’, ‘‘$585,000,000’’, ‘‘$85,000,000’’,

13 ‘‘$500,000,000’’, $2,740,000,000’’, ‘‘$690,000,000’’,

14 and ‘‘$2,050,000,000’’ and inserting ‘‘$6,650,000’’,

15 ‘‘$1,170,000,000’’, ‘‘$170,000,000’’,

16 ‘‘$1,000,000,000’’, ‘‘$5,480,000,000’’,

17 ‘‘$1,380,000,000’’, and ‘‘$4,100,000,000’’, respec18 tively.

19 (2) INTEREST RATE REDUCTION PROGRAM.—

20 Section 351 of such Act (7 U.S.C. 1999) is amend21 ed—

22 (A) in subsection (c), by striking ‘‘4’’ and

23 inserting ‘‘8’’; and

24 (B) in subsection (e)(2), by striking

25 ‘‘$490,000,000’’ and inserting ‘‘$980,000,000’’.
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1 (b) APPROPRIATIONS.—Out of any money in the

2 Treasury not otherwise appropriated, there are appro3 priated for the fiscal year ending September 30, 1999:

4 (1) For gross obligations for the principal

5 amount of direct and guaranteed loans as authorized

6 by sections 308 and 309 of the Consolidated Farm

7 and Rural Development Act, to be available from

8 funds in the Agricultural Credit Insurance Fund, as

9 follows:

10 (A) Farm ownership loans,

11 $1,021,298,000, of which $850,000,000 shall

12 be for guaranteed loans.

13 (B) Operating loans, $3,576,756,000, of

14 which $1,985,812,000 shall be for unsubsidized

15 guaranteed loans and $470,000,000 shall be for

16 subsidized guaranteed loans.

17 (2) For the cost of direct and guaranteed loans,

18 including the cost of modifying loans as defined in

19 section 502 of the Congressional Budget Act of

20 1974, as follows:

21 (A) Farm ownership loans, $39,160,000,

22 of which $13,516,000 shall be for guaranteed

23 loans.

24 (B) Operating loans, $140,674,000, of

25 which $23,036,000 shall be for unsubsidized
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1 guaranteed loans and $41,078,000 shall be for

2 subsidized guaranteed loans.

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