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 experienc-
ing exceptionally low commodity prices and extensive
crop failures.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Emergency Agricultural Response Act of 1998’’.
(b) TABLE OF CONTENTS.—The table of contents of
this Act is as follows:
Sec. 1. Short title; table of contents.
Sec. 2. Use of disaster reserve authority to provide disaster assistance to cer-
tain 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.
SEC. 2. USE OF DISASTER RESERVE AUTHORITY TO PRO-
VIDE DISASTER ASSISTANCE TO CERTAIN
PRODUCERS.
(a) PROVISION OF ASSISTANCE.—Section 813(a) of
the Agricultural Act of 1970 (7 U.S.C. 1427a(a)) is
amended by adding at the end the following:
‘‘The Secretary shall use funds appropriated for the
purposes of this section to make cash payments to agricul-
tural producers to augment crop insurance benefits for the
purpose of alleviating distress caused by multiple year
crop losses.’’
(b) APPROPRIATIONS.—There is hereby appropriated,
out of any money in the Treasury not otherwise appro-
priated, $1,200,000,000 for the reserve established under
section 813 of the Agricultural Act of 1970 (7 U.S.C.
1427a).
(c) DESIGNATION OF EMERGENCY.—The amount ap-
propriated under subsection (b) shall be available only to
the extent that the President submits to Congress an offi-
cial budget request for a specific dollar amount that in-
cludes designation of the entire amount of the request as
an emergency requirement for the purposes of the Bal-
anced Budget and Emergency Deficit Control Act of 1985
(2 U.S.C. 900 et seq.). The entire amount of the funds
is designated by Congress as an emergency requirement
under section 251(b)(2)(A) of the Balanced Budget and
Emergency Deficit Control Act of 1985 (2 U.S.C.
901(b)(2)(A)).
SEC. 3. INCREASE IN LOAN RATES FOR MARKETING ASSIST-
ANCE LOANS FOR CERTAIN CROPS.
(a) WHEAT.—Subsection (a) of section 132 of the
Agricultural Market Transition Act (7 U.S.C. 7232) is
amended by striking paragraph (1) and inserting the fol-
lowing new paragraph:
‘‘(1) LOAN RATE.—Subject to paragraph (2),
the loan rate for a marketing assistance loan under
section 131 for wheat shall be equal to the greater
of—
‘‘(A) 85 percent of the simple average
price received by producers of wheat, as deter-
mined by the Secretary, during the marketing
years for the immediately preceding 5 crops of
wheat, excluding the year in which the average
price was the highest and the year in which the
average price was the lowest in the period; and
‘‘(B) 85 percent of the simple average
price received by producers of wheat, as deter-
mined by the Secretary, during the 1994
through 1998 marketing years, excluding the
year in which the average price was the highest
and the year in which the average price was the
lowest in the period.’’.
(b) FEED GRAINS.—Subsection (b) of such section
is amended by striking paragraph (1) and inserting the
following new paragraph:
‘‘(1) LOAN RATE FOR CORN.—Subject to para-
graph (2), the loan rate for a marketing assistance
loan under section 131 for corn shall be equal to the
greater of—
‘‘(A) 85 percent of the simple average
price received by producers of corn, as deter-
mined by the Secretary, during the marketing
years for the immediately preceding 5 crops of
corn, excluding the year in which the average
price was the highest and the year in which the
average price was the lowest in the period; and
‘‘(B) 85 percent of the simple average
price received by producers of corn, as deter-
mined by the Secretary, during the 1994
through 1998 marketing years, excluding the
year in which the average price was the highest
and the year in which the average price was the
lowest in the period.’’.
(c) UPLAND COTTON.—Subsection (c)(2) of such sec-
tion is amended by striking ‘‘or more than $0.5192 per
pound’’.
(d) EXTRA LONG STAPLE COTTON.—Subsection (d)
of such section is amended to read as follows:
‘‘(d) EXTRA LONG STAPLE COTTON.—The loan rate
for a marketing assistance loan under section 131 for
extra long staple cotton shall be equal to the greater of—
‘‘(1) 85 percent of the simple average price re-
ceived by producers of extra long staple cotton, as
determined by the Secretary, during 3 years of the
5-year period ending July 31 of the year preceding
the year in which the crop is planted, excluding the
year in which the average price was the highest and
the year in which the average price was the lowest
in the period; and
‘‘(2) 85 percent of the simple average price re-
ceived by producers of extra long staple cotton, as
determined by the Secretary, during the 1994
through 1998 marketing years, excluding the year in
which the average price was the highest and the year
in which the average price was the lowest in the pe-
riod.’’.
(e) RICE.—Subsection (e) of such section is amended
to read as follows:
‘‘(e) RICE.—The loan rate for a marketing assistance
loan under section 131 for rice shall be equal to the great-
er of—
‘‘(1) 85 percent of the simple average price re-
ceived by producers of rice, as determined by the
Secretary, during the marketing years for the imme-
diately preceding 5 crops of rice, excluding the year
in which the average price was the highest and the
year in which the average price was the lowest in the
period; and
‘‘(2) 85 percent of the simple average price re-
ceived by producers of rice, as determined by the
Secretary, during the 1994 through 1998 marketing
years, excluding the year in which the average price
was the highest and the year in which the average
price was the lowest in the period; and
‘‘(3) $6.50 per hundredweight.’’.
(f) OILSEEDS.—Subsection (f) of such section is
amended by striking paragraphs (1) and (2) and inserting
the following new paragraphs:
‘‘(1) SOYBEANS.—The loan rate for a market-
ing assistance loan under section 131 for soybeans
shall be equal to the greater of—
‘‘(A) 85 percent of the simple average
price received by producers of soybeans, as de-
termined by the Secretary, during the market-
ing years for the immediately preceding 5 crops
of soybeans, excluding the year in which the av-
erage price was the highest and the year in
which the average price was the lowest in the
period; and
‘‘(B) 85 percent of the simple average
price received by producers of soybeans, as de-
termined by the Secretary, during the 1994
through 1998 marketing years, excluding the
year in which the average price was the highest
and the year in which the average price was the
lowest in the period.
‘‘(2) SUNFLOWER
SEED, CANOLA, RAPESEED,
SAFFLOWER, MUSTARD SEED, AND FLAXSEED.—The
loan rate for a marketing assistance loan under sec-
tion 131 for sunflower seed, canola, rapeseed, saf-
flower, mustard seed, and flaxseed, individually,
shall be equal to the greater of—
‘‘(A) 85 percent of the simple average
price received by producers of such oilseed, as
determined by the Secretary, during the mar-
keting years for the immediately preceding 5
crops of such oilseed, excluding the year in
which the average price was the highest and the
year in which the average price was the lowest
in the period; and
‘‘(B) 85 percent of the simple average
price received by producers of such oilseed, as
determined by the Secretary, during the 1994
through 1998 marketing years, excluding the
year in which the average price was the highest
and the year in which the average price was the
lowest in the period.’’.
SEC. 4. EXTENSION OF MARKETING ASSISTANCE LOANS.
Section 133 of the Agricultural Market Transition
Act (7 U.S.C. 7233) is amended by striking subsection
(c) and inserting the following:
‘‘(c) EXTENSION.—The Secretary may extend the
term of marketing assistance loans made to producers
under this subtitle for any loan commodity for a 6-month
period if the Secretary determines that the extension will
promote the orderly delivery of the loan commodity, mate-
rially reduce program costs to the Government, or result
in a significant improvement in income for producers.’’.
SEC. 5. REINSTATEMENT OF FARMER-OWNED RESERVE
PROGRAM.
Section 171(b)(1) of the Agricultural Market Transi-
tion Act (7 U.S.C. 7301(b)(1)) is amended by striking
subparagraph (E).
SEC. 6. STRATEGIC FOOD RESERVE OF LOAN COMMOD-
ITIES.
Subtitle C of the Agricultural Market Transition Act
(7 U.S.C. 7231 et seq.) is amended by adding at the end
the following new section:
‘‘SEC. 138. STRATEGIC FOOD RESERVE.
‘‘(a) RESERVE
REQUIRED.—The Secretary shall
build a reserve stock of a loan commodity whenever prices
for that commodity fall below 75 percent of the loan rate
for marketing assistance loans for that commodity.
‘‘(b) METHODS OF ACQUISITION.—Loan commodities
for inclusion in the reserve may be acquired—
‘‘(1) through purchases—
‘‘(A) from producers; or
‘‘(B) in the market, if the Secretary deter-
mines that the purchases will not unduly dis-
rupt the market; or
‘‘(2) by designation by the Secretary of stocks
of loan commodities of the Commodity Credit Cor-
poration.
‘‘(c) RELEASE
OF ELIGIBLE COMMODITIES.—The
Secretary may release stocks of a loan commodity in the
reserve only when there is such a domestic shortage of
the loan commodity that—
‘‘(1) widespread concern exists about the supply
of affordable food for residents of the United States;
and
‘‘(2) prices for the commodity exceed 200 per-
cent of the loan rate for marketing assistance loans
for the commodity.
‘‘(d) ADMINISTRATION.—To the maximum extent
practicable consistent with the fulfillment of the purposes
of this section and the effective and efficient administra-
tion of this section, the Secretary shall use the usual and
customary channels, facilities, arrangements, and prac-
tices of trade and commerce to release stocks of a loan
commodity maintained in the reserve. The Secretary shall
administer the release of stocks from the reserve so as to
ensure that the prices received by agricultural producers
of that commodity are not depressed as a result of the
release.
‘‘(e) LIMITATION ON TOTAL QUANTITY ACQUIRED.—
The Secretary may not acquire for inclusion in the reserve
more than 25 percent of the average annual production
of a loan commodity.
‘‘(f) MANAGEMENT
OF COMMODITIES.—The Sec-
retary shall provide—
‘‘(1) for the management of loan commodities
in the reserve, including the selection of storage lo-
cations; and
‘‘(2) for the periodic rotation or replacement of
stocks of loan commodities in the reserve to avoid
spoilage and deterioration of the commodities.
‘‘(g) USE OF COMMODITY CREDIT CORPORATION.—
The funds, facilities, and authorities of the Commodity
Credit Corporation shall be used by the Secretary in carry-
ing out this section, except that any restriction applicable
to the acquisition, storage, or disposition of commodities
owned or controlled by the Commodity Credit Corporation
shall not apply.’’.
SEC. 7. IMPROVED DELIVERY OF FARM SERVICE AGENCY
SERVICES AT LOCAL AND AREA LEVEL.
(a) TRANSFER OF FUNDS FOR FISCAL YEAR 1999.—
To ensure the prompt response of the Farm Service Agen-
cy during fiscal year 1999 to requests submitted by pro-
ducers, the Secretary of Agriculture may transfer to the
Farm Service Agency from other appropriations or funds
available to the agencies or corporations of the Depart-
ment of Agriculture an amount equal to not more than
25 percent of the operating budget for that fiscal year of
local and area offices of the Farm Service Agency.
Amounts transferred under this subsection may be used
only for activities at local and area offices of the Farm
Service Agency.
(b) SUBSEQUENT YEARS.—The Secretary of Agri-
culture shall include in the materials submitted to Con-
gress in support of the budget request for the Department
of Agriculture for each fiscal year a certification that the
amount requested for the operation of local and area of-
fices of the Farm Service Agency will be sufficient to meet
the expected needs of agricultural producers for services.
SEC. 8. TEMPORARY CONSERVATION RESERVE TO RE-
SPOND TO DISEASE INFESTATIONS.
Subtitle D of title XII of the Food Security Act of
1985 (16 U.S.C. 3801 et seq.) is amended by inserting
after section 1256 the following new section:
‘‘SEC. 1257. THREE-YEAR CONSERVATION RESERVE FOR
DISEASED CROPLANDS.
‘‘(a) RESERVE REQUIRED.—Using the authority pro-
vided in subchapter B, the Secretary shall formulate and
carry out the enrollment of lands described in subsection
(b) in a conservation reserve program through the use of
contracts to assist owners and operators of such lands to
combat plant diseases that have devastated the lands.
‘‘(b) ELIGIBLE LANDS.—The Secretary shall include
in the program only those croplands that have been dev-
astated by a plant disease for which effective responses
are reasonably anticipated within four years, but are oth-
erwise suitable for the production of crops or livestock.
‘‘(c) TERM OF CONTRACT.—A contract under this
section shall have a term of three years.’’.
SEC. 9. SPECIAL CROP INSURANCE RULES FOR COUNTIES
SUBJECT TO DISASTER DECLARATION.
(a) MULTI-PERIL CROP INSURANCE.—For purposes
of administering the Federal Crop Insurance Act (7
U.S.C. 1501 et seq.) for producers operating in a county
described in subsection (c), the Secretary of Agriculture
may not—
(1) include the producer in any nonstandard
classification list on account of the inclusion of the
county in a designated disaster area; or
(2) determine, without the consent of the pro-
ducer, the actual production history of the producer
using production records of any crop year during
which the county was included in a designated disas-
ter area.
(b) EXCEPTION.—Subsection (a) shall not apply to
a disaster that the Secretary of Agriculture determines is
a reoccurring, frequent, and well-known risk of farming
in the locale, and the risks cannot reasonably be expected
to be controlled or eliminated by crop protection efforts
within a 7-year period.
(c) COVERED COUNTIES.—This section applies with
respect to a county that is included in whole or in part
in a designated disaster area.
(d) DESIGNATED DISASTER AREA DEFINED.—In
this section, the term ‘‘designated disaster area’’ means
an area—
(1) covered by a Presidential declaration of
major disaster issued under section 401 of the Rob-
ert T. Stafford Disaster Relief and Emergency As-
sistance Act (42 U.S.C. 5170) on account of damag-
ing weather or a related condition in the area; or
(2) determined to be a disaster area by the Sec-
retary of Agriculture under subpart A of part 1945
of title 7, Code of Federal Regulations, on account
of damaging weather or a related condition in the
area.
(e) EFFECTIVE DATE.—This section shall apply be-
ginning with the 1999 crop year for each commodity that
is grown in a covered county and for which multi-peril
crop insurance is generally available in the United States.
SEC. 10. DOUBLING OF BUDGET AUTHORITY AND APPRO-
PRIATIONS FOR DIRECT LOAN, LOAN GUAR-
ANTEE, AND INTEREST RATE REDUCTION
PROGRAMS FOR FISCAL YEAR 1999.
(a) BUDGET AUTHORITY.—
(1) DIRECT LOAN AND LOAN GUARANTEE PRO-
GRAMS.—Section 346(b)(1)(D) of the Consolidated
Farm and Rural Development Act (7 U.S.C.
1994(b)(1)(D)) 
is 
amended 
by 
striking
‘‘$3,325,000,000’’, ‘‘$585,000,000’’, ‘‘$85,000,000’’,
‘‘$500,000,000’’, $2,740,000,000’’, ‘‘$690,000,000’’,
and ‘‘$2,050,000,000’’ and inserting ‘‘$6,650,000’’,
‘‘$1,170,000,000’’, 
‘‘$170,000,000’’,
‘‘$1,000,000,000’’, 
‘‘$5,480,000,000’’,
‘‘$1,380,000,000’’, and ‘‘$4,100,000,000’’, respec-
tively.
(2) INTEREST RATE REDUCTION PROGRAM.—
Section 351 of such Act (7 U.S.C. 1999) is amend-
ed—
(A) in subsection (c), by striking ‘‘4’’ and
inserting ‘‘8’’; and
(B) in subsection (e)(2), by striking
‘‘$490,000,000’’ and inserting ‘‘$980,000,000’’.
(b) APPROPRIATIONS.—Out of any money in the
Treasury not otherwise appropriated, there are appro-
priated for the fiscal year ending September 30, 1999:
(1) For gross obligations for the principal
amount of direct and guaranteed loans as authorized
by sections 308 and 309 of the Consolidated Farm
and Rural Development Act, to be available from
funds in the Agricultural Credit Insurance Fund, as
follows:
(A) 
Farm 
ownership 
loans,
$1,021,298,000, of which $850,000,000 shall
be for guaranteed loans.
(B) Operating loans, $3,576,756,000, of
which $1,985,812,000 shall be for unsubsidized
guaranteed loans and $470,000,000 shall be for
subsidized guaranteed loans.
(2) For the cost of direct and guaranteed loans,
including the cost of modifying loans as defined in
section 502 of the Congressional Budget Act of
1974, as follows:
(A) Farm ownership loans, $39,160,000,
of which $13,516,000 shall be for guaranteed
loans.
(B) Operating loans, $140,674,000, of
which $23,036,000 shall be for unsubsidized
guaranteed loans and $41,078,000 shall be for
subsidized guaranteed loans.
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