I
105TH CONGRESS
2D SESSION
H. R. 4618
To provide emergency assistance to American farmers and ranchers for crop
and livestock feed losses due to disasters and to respond to loss of
world markets for American agricultural commodities.
IN THE HOUSE OF REPRESENTATIVES
SEPTEMBER 24, 1998
Mr. SMITH of Oregon 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 jurisdic-
tion of the committee concerned
A BILL
To provide emergency assistance to American farmers and
ranchers for crop and livestock feed losses due to disas-
ters and to respond to loss of world markets for Amer-
ican agricultural commodities.
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
‘‘Agriculture Disaster and Market Loss Assistance Act of
1998’’.
(b) TABLE OF CONTENTS.—The table of contents of
this Act is as follows:
Sec. 1. Short title; table of contents.
TITLE I—EMERGENCY ASSISTANCE FOR CROP AND LIVESTOCK
FEED LOSSES DUE TO DISASTERS
Sec. 101. General provisions.
Sec. 102. Crop loss assistance.
Sec. 103. Emergency livestock feed assistance.
TITLE II—MARKET LOSS ASSISTANCE
Sec. 201. Market loss assistance.
TITLE III—ADMINISTRATION
Sec. 301. Commodity Credit Corporation.
Sec. 302. Emergency requirement.
Sec. 303. Regulations.
TITLE 
I—EMERGENCY 
ASSIST-
ANCE FOR CROP AND LIVE-
STOCK FEED LOSSES DUE TO
DISASTERS
SEC. 101. GENERAL PROVISIONS.
(a) FAIR AND EQUITABLE DISTRIBUTION.—Assist-
ance made available under this title shall be distributed
in a fair and equitable manner to producers who have in-
curred crop and livestock feed losses in all affected geo-
graphic regions of the United States.
(b) PROGRAM ADMINISTRATION.—In carrying out
this title, the Secretary of Agriculture (referred to in this
Act as the ‘‘Secretary’’) may determine—
(1) 1 or more loss thresholds producers on a
farm must incur with respect to a crop to be eligible
for assistance;
(2) the payment rate for crop and livestock feed
losses incurred; and
(3) eligibility and payment limitation criteria
(as defined by the Secretary) for persons to receive
assistance under this title, which, in the case of as-
sistance received under any section of this title, shall
be in addition to—
(A) assistance made available under any
other section of this title and title II;
(B) payments or loans received by a person
under the Agricultural Market Transition Act
(7 U.S.C. 7201 et seq.);
(C) payments received by a person for the
1998 crop under the noninsured crop assistance
program established under section 196 of that
Act (7 U.S.C. 7333);
(D) crop insurance indemnities provided
for the 1998 crop under the Federal Crop In-
surance Act (7 U.S.C. 1501 et seq.); and
(E) emergency loans made available for the
1998 crop under subtitle C of the Consolidated
Farm and Rural Development Act (7 U.S.C.
1961 et seq.).
SEC. 102. CROP LOSS ASSISTANCE.
(a) IN GENERAL.—The Secretary shall administer a
program under which emergency financial assistance is
made available to producers on a farm who have incurred
losses associated with crops due to disasters (as deter-
mined by the Secretary).
(b) LOSSES INCURRED FOR 1998 CROP.—Subject to
section 302, the Secretary shall use not more than
$1,500,000,000 to make available assistance to producers
on a farm who have incurred losses in the 1998 crop due
to disasters.
(c) MULTIYEAR LOSSES.—Subject to section 302, the
Secretary shall use not more than $675,000,000 to make
available assistance to producers on a farm who have in-
curred multiyear losses (as defined by the Secretary) in
the 1998 and preceding crops of a commodity due to disas-
ters (including, but not limited to, diseases such as scab).
(d) RELATIONSHIP
BETWEEN
ASSISTANCE.—The
Secretary shall make assistance available to producers on
a farm under either subsection (b) or (c).
(e) QUALIFYING LOSSES.—Assistance under this sec-
tion may be made for losses associated with crops that
are due to, as determined by the Secretary—
(1) quantity losses;
(2) quality (including, but not limited to,
aflatoxin) losses; or
(3) severe economic losses due to damaging
weather or related condition.
(f) CROPS COVERED.—Assistance under this section
shall be applicable to losses for all crops, as determined
by the Secretary, due to disasters.
(g) CROP INSURANCE.—
(1) ADMINISTRATION.—In carrying out this
section, the Secretary shall not discriminate against
or penalize producers on a farm who have purchased
crop insurance under the Federal Crop Insurance
Act (7 U.S.C. 1501 et seq.).
(2) ENCOURAGING
FUTURE
CROP
INSURANCE
PARTICIPATION.—Subject to section 302, the Sec-
retary, acting through the Federal Crop Insurance
Corporation, may use the funds made available
under subsections (b) and (c), and only those funds,
to provide premium refunds or other assistance to
purchasers of crop insurance for their 1998 insured
crops, or their preceding (including 1998) insured
crops.
(3) PRODUCERS WHO HAVE NOT PURCHASED
CROP INSURANCE FOR 1998 CROP.—As a condition of
receiving assistance under this section, producers on
a farm who have not purchased crop insurance for
the 1998 crop under that Act shall agree by contract
to purchase crop insurance for the subsequent 2
crops produced by the producers.
(4) LIQUIDATED DAMAGES.—
(A) IN
GENERAL.—The contract under
paragraph (3) shall provide for liquidated dam-
ages to be paid by the producers due to the fail-
ure of the producers to purchase crop insurance
as provided in paragraph (3).
(B) NOTICE OF DAMAGES.—The amount
of the liquidated damages shall be established
by the Secretary and specified in the contract
agreed to by the producers.
(5) FUNDING FOR CROP INSURANCE PURCHASE
REQUIREMENT.—Subject to section 302, such sums
as may be necessary, to remain available until ex-
pended, shall be available to the Federal Crop Insur-
ance Corporation to cover costs incurred by the Cor-
poration as a result of the crop insurance purchase
requirement in paragraph (3). Funds made available
under subsections (b) and (c) may not be used to
cover such costs.
plement titles I and II. The issuance of the regulations
shall be made without regard to—
(1) the notice and comment provisions of sec-
tion 553 of title 5, United States Code;
(2) the Statement of Policy of the Secretary of
Agriculture effective July 24, 1971 (36 Fed. Reg.
13804) relating to notices of proposed rulemaking
and public participation in rulemaking; and
(3) chapter 35 of title 44, United States Code
(commonly known as the ‘‘Paperwork Reduction
Act’’).
(b) CONGRESSIONAL REVIEW
OF AGENCY RULE-
MAKING.—In carrying out this section, the Secretary shall
use the authority provided under section 808 of title 5,
United States Code.
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