171), the majority of projected commodity program
spending depends on market prices for the major ag-
ricultural commodities.
(2) Changes in actual market prices for these
commodities can significantly alter the costs in-
curred by the Commodity Credit Corporation to fund
these commodity programs.
(3) According to a recent comparison of the
July 2002 Food and Agriculture Policy Research In-
stitute baseline estimate and actual mid-July market
prices, recent increases in market prices for certain
agricultural commodities are projected to reduce
commodity program costs for the 2002 crop year by
more than $6,000,000,000.
(4) As a result of these commodity program
cost savings, Commodity Credit Corporation funds
are available to provide direct assistance to Amer-
ican farmers and ranchers who suffered 2001 crop
year losses, or are suffering 2002 crop year losses,
due to natural disasters.
(5) Crop insurance is an important risk man-
agement tool that is available to American farmers
and ranchers and should be fully utilized in order to
limit financial exposure to weather-related crop
losses.
(b) PURPOSE.—It is the purpose of this Act to direct
the Secretary of Agriculture to use unspent loan deficiency
payment and counter-cyclical payment funds to provide
emergency livestock assistance and emergency crop loss
assistance to American farmers and ranchers who suffered
2001 crop year losses, or are suffering 2002 crop year
losses, due to natural disasters.
SEC. 3. LIVESTOCK ASSISTANCE PROGRAM.
(a) AVAILABILITY.—Subject to section 5, the Sec-
retary of Agriculture shall use the funds, facilities, and
authorities of the Commodity Credit Corporation to make
and administer payments for livestock losses to producers
for 2001 or 2002 losses in a county that has received an
emergency designation by the President or the Secretary
in calendar year 2001 or 2002. The Secretary may reserve
for the American Indian Livestock Feed Program a por-
tion of the funds available to carry out this section.
(b) ADMINISTRATION.—The Secretary shall make as-
sistance available under this section in the same manner
as provided under section 806 of the Agriculture, Rural
Development, Food and Drug Administration, and Re-
lated Agencies Appropriations Act, 2001 (Public Law
106–387; 114 Stat. 1549A–51).
SEC. 4. CROP LOSS ASSISTANCE.
(a) AVAILABILITY.—Subject to section 5, the Sec-
retary of Agriculture shall use the funds, facilities, and
authorities of the Commodity Credit Corporation to make
emergency financial assistance available to producers on
a farm that have incurred qualifying crop losses for the
2001 or 2002 crop due to damaging weather or related
condition, as determined by the Secretary.
(b) ADMINISTRATION.—The Secretary shall make as-
sistance available under this section in the same manner
as provided under section 815 of the Agriculture, Rural
Development, Food and Drug Administration, and Re-
lated Agencies Appropriations Act, 2001 (Public Law
106–387; 114 Stat. 1549A–55), including using the same
loss thresholds for the quantity, quality, and economic
losses as were used in administering that section.
SEC. 5. SOURCE OF FUNDING.
(a) ESTIMATION OF FARM PROGRAM SAVINGS.—The
Secretary of Agriculture shall estimate the savings to the
Commodity Credit Corporation to be derived during the
2002 crop year as a result of the lower-than-anticipated
costs of the marketing loan program and counter-cyclical
payment program of the Farm Security and Rural Invest-
ment Act of 2002 (Public Law 107–171).
(b) USE OF SAVINGS.—An amount of Commodity
Credit Corporation funds equal to the savings estimated
under subsection (a) shall be available to the Secretary
to carry out sections 3 and 4.
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