Disaster Assistance Act of 1989
PL 101-82 (H.R.2467), enacted 08/14/1989

103 STAT. 564 
PUBLIC LAW 101-82—AUG. 14, 1989 
Public Law 101-82 
101st Congress 
An Act 
Aug. 14, 1989 
^ 
.^ _,. 
—rtr T) 24fi71— 
provide disaster assistance to agricultural producers, and for other purposes. 
Be it enacted by the Senate and House of Representatives of the 
Disaster 
United States of America in Congress assembled. 
Assistance 
Act of 1989. 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
7 use 1421 note. 
(a) SHORT TITLE.—This Act may be cited as the "Disaster Assist-
ance Act of 1989". 
(b) TABLE OF CONTENTS.—The table of contents is as follows: 
Sec. 1. Short title; table of contents. 
TITLE I—EMERGENCY CROP LOSS ASSISTANCE 
SUBTITLE A—ANNUAL CROPS 
Sec. 101. Payments to program participants for target price commodities. 
Sec. 102. Payments to program nonparticipants for target price commodities. 
Sec. 103. Peanuts, sugar, and tobacco. 
Sec. 104. Soybeans and nonprogram crops. 
Sec. 105. Crop quality reduction disaster payments. 
Sec. 106. Effect of Federal crop insurance payments. 
Sec. 107. Crop insurance coverage for the 1990 crops. 
Sec. 108. Crops harvested for forage uses. 
Sec. 109. Payment limitations. 
Sec. 110. No double payments on replanted acreage. 
Sec. 111. Substitution of crop insurance program yields. 
Sec. 112. Definitions. 
SUBTITLE B—ORCHARDS 
Sec. 121. Eligibility. 
Sec. 122. Assistance. 
Sec. 123. Limitation on assistance. 
Sec. 124. Definition. 
Sec. 125. Duplicative payments. 
Sec. 126. Sense of Congress on crop insurance for orchard crops. 
SUBTITLE C—FOREST CROPS 
Sec. 131. Eligibility. 
Sec. 132. Assistance. 
Sec. 133. Limitation on assistance. 
Sec. 134. Definition. 
Sec. 135. Duplicative payments. 
SUBTITLE D—ADDITIONAL ASSISTANCE 
Sec. 141. New conservation measures. 
Sec. 142. Assistance for ponds. 
SUBTITLE E—ADMINISTRATIVE PROVISIONS 
Sec. 151. Ineligibility. 
Sec. 152. Timing and manner of assistance. 
Sec. 153. Commodity Credit Corporation. 
Sec. 154. Limitation on outlays. 
Sec. 155. Regulations. 
TITLE II—EMERGENCY LIVESTOCK ASSISTANCE 
Sec. 201. Use of stored grain for assistance. 
Sec. 202. Livestock transportation assistance. 
Sec. 203. Livestock water development projects. 
Sec. 204. Animal unit methodology study and report. 
PUBLIC LAW 101-82—AUG. 14, 1989 
103 STAT. 565 
TITLE III—DISASTER CREDIT AND FORBEARANCE 
Sec. 301. Emergency loans. 
Sec. 302. 1990 farm operating loans. 
Sec. 303. FmHA loans made to Indian tribes. 
TITLE IV—RURAL BUSINESSES 
Sec. 401. Disaster assistance for rural business enterprises. 
TITLE V—WATER-RELATED ASSISTANCE 
Sec. 501. Emergency community water assistance grant program. 
Sec. 502. Livestock water assistance. 
Sec. 503. Disaster assistance for watershed protection activities. 
TITLE VI—GENERAL PROVISIONS 
Sec. 601. Shrinkage allowance for peanuts. 
Sec. 602. Advanced deficiency repayment deadline for 1988 crops. 
Sec. 603. Planting of alternate crops on permitted acreage. 
Sec. 604. Crop insurance yield coverage. 
TITLE I—EMERGENCY CROP LOSS 
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ASSISTANCE 
Subtitle A—Annual Crops 
SEC. 101. PAYMENTS TO PROGRAM PARTICIPANTS FOR TARGET PRICE 
COMMODITIES. 
(a) DISASTER PAYMENTS.— 
(1) IN GENERAL.—Effective only for producers on a farm who 
elected to participate in the production adjustment program 
established under the Agricultural Act of 1949 (7 U.S.C. 1421 et 
seq.) for the 1989 crop of wheat, feed grains, upland cotton, 
extra long staple cotton, or rice, except as otherwise provided in 
this subsection, if the Secretary of Agriculture determines that, 
because of damaging weather or related condition in 1988 or 
1989, the total quantity of the 1989 crop of the commodity that 
such producers are able to harvest on the farm is less than the 
result of multiplying 60 percent (or, in the case of producers 
who obtained crop insurance for the 1989 crop of the commodity 
under the Federgd Crop Insurance Act (7 U.S.C. 1501 et seq.), 65 
percent) of the farm program pa}nnent jdeld established by the 
Secretary for such crop by the sum of the acreage planted for 
harvest and the acreage prevented from being planted (because 
of a natural disaster, as determined by the Secretary) for such 
crop, the Secretary shall make a disaster payment available to 
such producers at a rate equal to 65 percent of the established 
price for the crop for any deficiericy in production greater than 
40 percent (or, in the case of producers who obtained crop 
insurance for the 1989 crop of the commodity under the Federsd 
Crop Insurance Act, 35 percent) for the crop. 
(2) LlMFTATIONS.— 
(A) ACREAGE IN EXCESS OF PERMITTED ACREAGE.—Pay-
ments provided under paragraph (1) for a crop of a commod-
ity may not be made avsdlable to producers on a farm with 
respect to any acreage in excess of the permitted acreage 
for the farm for the commodity. 
(B) CROP INSURANCE.—Payments provided under para-
graph (1) for a crop of a commodity may not be made 
103 STAT. 566 
PUBLIC LAW 101-82—AUG. 14, 1989 
available to producers on a farm unless such producers 
enter into an agreement to obtain multiperil crop insur-
ance, to the extent required under section 107. 
(3) REDUCTION IN DEFICIENCY PAYMENTS.—The total quantity 
of a crop of a commodity on which deficiency payments other-
wise would be payable to producers on a farm under the Agri-
cultural Act of 1949 shall be reduced by the quantity on which a 
pa3rment is made to the producers for the crop under paragraph 
(1). 
(4) ELECTION OF PAYMENTS.— 
(A) APPUCATION OF PARAGRAPH.—This paragraph shall 
apply, effective only for the 1989 crops of wheat, feed 
grains, upland cotton, and rice, to producers on a farm 
who— 
(iXI) had failed wheat, feed gr£dn, upland cotton, or 
rice acreage; or 
(II) were prevented from planting acreage to such 
commodity because of damaging weather or related 
condition in 1988 or 1989; and 
(ii) elected to devote all or a portion of such acreage 
to conservation or other uses in accordance with sec-
tion 
lOTEKcXlXC), 
lOSacXlXB), 
103A(cXlXB), or 
lOlACcXlXB) of the Agricultural Act of 1949 (7 U.S.C. 
1445b-3(cXlXC), 1444e(cXlXB), 1444-l(cXlXB), or 1441-
l(cXlXB)). 
(B) ELECTION.—The Secretary shall (within 30 days after 
the date of enactment of this Act) permit producers referred 
to in subparagraph (A) to elect whether to receive disaster 
pa3mients in accordance with this section in lieu of pay-
ments under the sections referred to in subparagraph 
(AXii). 
(b) ADVANCE DEFICIENCY PAYMENTS.— 
(1) APPUCATION OF SUBSECTION.—This subsection shall apply 
only to producers on a farm who elected to participate in the 
production adjustment program established under the Agricul-
tural Act of 1949 for the 1989 crop of wheat, feed grains, upland 
cotton, or rice. 
(2) FORGIVENESS O
F REFUND REQUIREMENT.— 
(A) IN GENERAL.—Subject to subparagraph (B), if because 
of damaging weather or related condition in 1988 or 1989 
the total quemtity of the 1989 crop of the commodity that 
the producers are able to harvest on the farm is less than 
the result of multiplying the farm program pa3rment yield 
established by the Secretary for such crop by the sum of the 
acreage planted for harvest and the acreage prevented from 
being planted (because of a natural disaster, as determined 
by the Secretary) for such crop (hereinafter in this section 
referred to as the "qualifying amount"), the producers shall 
not be required to refund any advance deficiency pajrment 
made to the producers for such crop under section 107C of 
the Agricultural Act of 1949 (7 U.S.C. 1445b-2) with respect 
to that portion of the deficiency in production that does not 
exceed— 
(i) in the case of producers who obtained crop insur-
ance for the 1989 crop of the commodity under the 
Federal Crop Insurance Act, 35 percent of the qualify-
ing amount; and 
PUBLIC LAW 101-82—AUG. 14, 1989 
103 STAT. 567 
(ii) in the case of other producers, 40 percent of the 
qualifjdng amount. 
(B) CROP INSURANCE.—Producers on a farm shall not be 
eligible for the forgiveness provided for under subpara-
graph (A), unless such producers enter into an agreement to 
obtain multiperil crop insurance, to the extent required 
under section 107. 
(3) ELECTION FOR NONRECIPIENTS.—The Secretary shall allow 
producers on a farm who elected, prior to the date of enactment 
of this Act, not to receive advance deficiency payments made 
available for the 1989 crop under section 107C of the Agricul-
tural Act of 1949, to elect (within 30 days after the date of the 
enactment of this Act) whether to receive such advance defi-
ciency pajnnents. 
(4) DATE OF REFUND FOR PAYMENTS.—Effective only for the 
1989 crops of wheat, feed grains, upland cotton, and rice, if the 
Secretary determines that any portion of the advance deficiency 
payment made to producers for the crop under section 107C of 
the Agricultural Act of 1949 must be refunded, such refund 
shall not be required prior to July 31, 1990, for that portion of 
the crop for which a disaster pajrment is made under subsection 
(a). 
SEC. 102. PAYMENTS TO PROGRAM NONPARTICIPANTS FOR TARGET 
PRICE COMMODITIES. 
(a) DISASTER PAYMENTS.— 
(1) IN GENERAL.—Effective only for producers on a farm who 
elected not to participate in the production adjustment program 
established under the Agricultural Act of 1949 (7 U.S.C. 1421 et 
seq.) for the 1989 crop of wheat, feed grains, upland cotton, 
f 
extra long staple cotton, or rice, if the Secretary of Agriculture 
determines that because of damaging weather or related condi-
tion in 1988 or 1989, the total quantity of the 1989 crop of the 
commodity that such producers are able to harvest on the farm 
is less than the result of multiplying 50 percent of the county 
average yield established by the Secretary for such crop by the 
sum of acreage planted for harvest and the acreage for which 
prevented planted credit is approved by the Secretary for such 
crop under subsection Q)), the Secretary shall make a disaster 
payment available to such producers. 
(2) PAYMENT RATE.—The pajnnent shall be made to the 
producers at a rate equal to 65 percent of the basic county loan 
rate (or a comparable price if there is no current basic county 
loan rate) for the crop, as determined by the Secretary, for any 
deficiency in production greater than 50 percent for the crop. 
0)) PREVENTED PLANTING CREDIT.— 
(1) IN GENERAL.—The Secretary shall provide prevented plant-
ing credit under subsection (a) with respect to acreage that 
producers on a farm were prevented from planting to the 1989 
crop of the commodity for harvest because of damaging weather 
or related condition in 1988 or 1989, as determined by the 
Secretary. 
(2) MAXIMUM ACREAGE.—Such acreage may not exceed the 
greater of— 
(A) a quantity equal to the acreage on the farm planted 
(or prevented from being planted due to a natural disaster 
or other condition beyond the control of the producers) to 
103 STAT. 568 
PUBLIC LAW 101-82—AUG. 14, 1989 
the commodity for harvest in 1988 minus acreage actually 
planted to the commodity for harvest in 1989; or 
(B) a quantity equal to the average of the acreage on the 
farm planted (or prevented from being planted due to a 
natural disaster or other condition beyond the control of 
the producers) to the commodity for harvest in 1986, 1987, 
and 1988 minus acreage actually planted to the commodity 
for harvest in 1989. 
(3) ADJUSTMENTS.—The Secretary shall make appropriate 
a4justments in applying the limitations contained in paragraph 
(2) to take into account crop rotation practices of the producers. 
(c) LIMITATIONS.— 
(1) ACREAGE LIMITATION PROGRAM.—The amount of payments 
made available to producers on a farm for a crop of a commodity 
under subsection (a) shsdl be reduced by a factor equivalent to 
the acreage limitation program percentage established for such 
crop under the Agricultural Act of 1949. 
Contracts. 
(2) CROP INSURANCE.—Pa3ntnents provided under subsection (a) 
for a crop of a commodity may not be made available to the 
producers on a farm unless such producers enter into an agree-
ment to obtain multiperil crop insurance, to the extent required 
under section 107. 
SEC. 103. PEANUTS, SUGAR, AND TOBACCO. 
(a) DISASTER PAYMENTS.— 
(1) IN GENERAL.—Effective only for the 1989 crops of peanuts, 
sugar beets, sugarcane, and tobacco, if the Secretary of Agri-
culture determines that, because of damaging weather or re-
lated condition in 1988 or 1989, the total quantity of the 1989 
crop of the commodity that the producers on a farm are able to 
harvest is less than the result of multipljdng 60 percent (or, in 
the case of producers who obtained crop insurance for the 1989 
crop of the commodity under the Federal Crop Insurance Act (7 
U.S.C. 1501 et seq.), 65 percent) of the county average yield (or 
program 3rield, in the case of peanuts) established by the Sec-
retary for such crop by the sum of the acreage planted for 
harvest and the acreage for which prevented planted credit is 
approved by the Secretary for such crop under subsection (b), 
the Secretary shall make a disaster pajnnent available to such 
producers. 
(2) PAYMENT RATE.—The payment shall be made to the 
producers at a rate equal to 65 percent of the applicable pay-
ment level under paragraph (3), as determined by the Secretary, 
for any deficiency in production greater than— 
(A) in the case of producers who obtained crop insurance 
for the 1989 crop of the commodity under the Federal Crop 
Insurance Act— 
(i) 35 percent for the crop; or 
(ii) with respect to a crop of hurley tobacco or flue-
cured tobacco, 35 percent of the farm's 
effective 
marketing quota for 1989; and 
(B) in the case of producers who did not obtain crop 
insurance for the 1989 crop of the commodity under the 
Federal Crop Insurance Act— 
(i) 40 percent for the crop; or 
PUBLIC LAW 101-82—AUG. 14, 1989 
103 STAT. 569 
(ii) with respect to a crop of hurley tohacco or flue-
cured tobacco, 40 percent of the farm's 
effective 
marketing quota for 1989. 
(3) PAYMENT LEVEL.—For purposes of paragraph (1), the pay-
ment level for a commodity shall be equal to— 
(A) for peanuts, the price support level for quota peanuts 
or the price support level for additional peanuts, as 
applicable; 
(B) for tobacco, the national average loan rate for the 
type of tobacco involved, or (if there is none) the market 
price, as determined under section 104(aX2); and 
(C) for sugar beets and sugarcane, a level determined by 
the Secretary to be fair and reasonable in relation to the 
level of price support established for the 1989 crops of sugar 
beets and sugarcane, and that, insofar as is practicable, 
shall reflect no less return to the producer than under the 
1989 price support levels. 
0)) PREVENTED PLANTING CREDIT.— 
(1) IN GENERAL.—The Secretary shall provide prevented plant-
ing credit under subsection (a) with respect to acreage that 
producers on a farm were prevented from planting to the 1989 
crop of the commodity for harvest because of damaging weather 
or related condition in 1988 or 1989, as determined by the 
Secretary. 
(2) MAXIMUM ACREAGE.—Such acreage may not exceed the 
greater o
f
— 
(A) a quantity equal to the acreage on the farm planted 
(or prevented from being planted due to a natural disaster 
or other condition beyond the control of the producers) to 
the commodity for harvest in 1988 minus acreage actually 
planted to harvest in 1989; or 
(B) a quantity equal to the average of the acresige on the 
farm planted (or prevented from being planted due to a 
natural disaster or other condition beyond the control of 
the producers) to the commodity for harvest in 1986, 1987, 
and 1988 minus acreage actusdly planted to the commodity 
for harvest in 1989. 
(3) ADJUSTMENTS.—The Secretary shall make appropriate 
adjustments in appljdng the limitations contained in paragraph 
(2) to take into account crop rotation practices of the producers 
and any change in quotas for the 1989 crops of tobacco. 
(c) LIMITATION.—Payments provided under subsection (a) for a 
Contracts. 
crop of a commodity may not be made available to the producers on 
a farm unless such producers enter into an agreement to obtain 
multiperil crop insurance, to the extent required under section 107. 
(d) SPECIAL RULES FOR PEANUTS.—Notwithstanding any other 
provision of law— 
(1) a deficiency in production of quota peanuts from a farm, as 
otherwise determined under this section, shall be reduced by 
the quantity of peanut poundage quota that was the basis of 
such anticipated production that has been transferred from the 
farm; 
(2) payments made under this section shall be made taking 
into account whether the deficiency for which the deficiency in 
production is claimed was a deficiency in production of quota or 
additional peanuts and the pa3rment rate shall be established 
accordingly; and 
103 STAT. 570 
PUBLIC LAW 101-82—AUG. 14, 1989 
(3) the quantity of undermarketings of quota peanuts from a 
farm for the 1989 crop that may otherwise be claimed under 
section 358 of the Agricultural Adjustment Act of 1938 (7 U.S.C. 
1358) for purposes of future quota increases shall be reduced by 
the quantity of the deficiency of production of such peanuts for 
which payment has been received under this section. 
(e) SPECIAL RULES FOR TOBACCO.—Notwithstanding any other 
provision of law— 
(1) the quantity of undermarketings of quota tobacco from a 
farm for the 1989 crop that may otherwise be claimed under 
section 317 or 319 of the Agricultural Adjustment Act of 1938 (7 
U.S.C. 1314c or 1314e) for purposes of future quota increases 
shall be reduced by the quantity of the deficiency of production 
of such tobacco for which payment has been received under this 
section; and 
(2) disaster payments made to producers under this section 
may not be considered by the Secretary in determining the net 
losses of the Commodity Credit Corporation under section 
106A(d) of the Agricultural Act of 1949 (7 U.S.C. 1445-l(d)). 
SEC. 
1
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4
. 
SOYBEANS 
AND 
NONPROGRAM 
CROPS. 
(a) DISASTER PAYMENTS.— 
(1) IN GENERAL.— 
(A) EuGiBiUTY.—Effective only for the 1989 crops of soy-
beans and nonprogram crops, if the Secretary of Agri-
culture determines that, because of damaging weather or 
related condition in 1988 or 1989, the total quantity of the 
1989 crop of the commodity that the producers on a farm 
are able to harvest is less than— 
(i) with respect to soybeans and sunflowers, the result 
of multiplying 55 percent of the State, area, or county 
yield, adjusted for adverse weather conditions during 
the 1986, 1987, and 1988 crop years, as determined by 
the Secretary, for such crop by the sum of the acreage 
planted for harvest and the acreage for which pre-
vented planting credit is approved by the Secretary for 
such crop under subsection (b); 
(ii) with respect to nonprogram crops (other than as 
provided in clauses (i) and (iii)), the result of multiply-
ing 50 percent of the yield established by the Commod-
ity Credit Corporation under subsection (dX2) for such 
crop by the sum of the acreage planted for harvest and 
the acreage for which prevented planting credit is ap-
proved by the Secretary for such crop under subsection 
Ot)); and 
(iii) with respect to crops covered in section 201(b) of 
the Agricultural Act of 1949 (7 U.S.C. 1446(b)), 50 per-
cent of the historical annual yield of the producers for 
such crops, as determined by the Secretary, 
the Secretary shall make a disaster payment available to 
such producers. 
(B) PAYMENT RATE.—The payment shall be made to such 
producers at a rate equal to 65 percent of the applicable 
payment level under paragraph (2), as determined by the 
Secretary, for any deficiency in production greater than 45 
percent for soybeans and sunflowers (50 percent for other 
nonprogram crops) for the crop. 
PUBLIC LAW 101-82—AUG. 14, 1989 
103 STAT. 571 
(2) PAYMENT LEVEL.—For purposes of paragraph (1), the pay-
ment level for a commodity shall equal the simple average price 
received by producers of the commodity, as determined by the 
Secretary subject to paragraph (3), during the marketing years 
for the immediately preceding 5 crops of the commodity, exclud-
ing the year in which the average price was the highest and the 
year in which the average price was the lowest in such period. 
(3) CALCULATION OF PAYMENTS FOR DIFFERENT VARIETIES.— 
(A) CROP-BY-CROP BASIS.—The Secretary shall make disas- Regulations, 
ter payments under this subsection on a crop-by-crop basis, 
with consideration given to markets and uses of the crops, 
under regulations issued by the Secretary, 
(B) DIFFERENT VARIETIES.—For purposes of determining 
the pa)rment levels on a crop-by-crop basis, the Secretary 
shall consider as separate crops, and develop separate pay-
ment levels insofar as is practicable for, different varieties 
of the same commodity, and commodities for which there is 
a signific£mt difference in the economic value in the 
market. 
(4) EXCLUSIONS FROM HARVESTED QUANTITIES.—For purposes of 
determining the total quantity of the 1989 nonprogram crop of 
the commodity that the producers on a farm are able to harvest 
under paragraph (1), the Secretary shall exclude at least 70 
percent of— 
(A) commodities that cannot be sold in normal commer-
cial channels of trade; and 
(B) dockage, including husks and shells, if such dockage is 
excluded in determining yields under subsection (dX2). 
0)) PREVENTED PLANTING CREDIT.— 
(1) IN GENERAL.—The Secretary shall provide prevented plant-
ing credit under subsection (a) with respect to acreage that 
producers on a farm were prevented from planting to the 1989 
crop of the commodity for harvest because of damaging weather 
or related condition in 1988 or 1989, as determined by the 
Secretary. 
(2) MAXIMUM ACREAGE.—Such acreage may not exceed the 
greater of— 
(A) a quantity equal to the acreage on the farm planted 
(or prevented from being planted due to a natured disaster 
or other condition beyond the control of the producers) to 
the commodity for harvest in 1988 minus acreage actually 
planted for harvest in 1989; or 
(B) a quantity equal to the averse of the acreage on the 
farm planted (or prevented from being planted due to a 
natural disaster or other condition beyond the control of 
the producers) to the commodity for harvest in 1986, 1987, 
and 1988 minus acreage actually planted to the commodity 
for harvest in 1989. 
(3) ADJUSTMENTS.—The Secretary shall make appropriate 
adjustments in applying the limitations contained in paragraph 
(2) to take into account crop rotation practices of the producers. 
(c) LIMITATION.—Pa3rments provided under subsection (a) for a Contracts. 
crop of a commodity may not be made available to the producers on 
a farm unless such producers enter into an agreement to obtain 
multiperil crop insurance, to the extent required under section 107. 
(d) SPECIAL RULES FOR NONPROGRAM CROPS.— 
103 STAT. 572 
PUBLIC LAW 101-82—AUG. 14, 1989 
(1) DEFINITION OF NONFROGRAM CROP.—As used in this section, 
,, 
the term "nonprogram crop" means all crops for which crop 
insurance through the Federsd Crop Insurance Corporation was 
available for crop year 1989, and other commercial crops 
(including sweet potatoes) for which such insurance was not 
available for crop year 1989, except that such term shall not 
include a crop covered under section 101, 102, or 103, soybeans, 
or sunflowers. 
(2) FARM YIELDS.— 
(A) EsTABUSHMENT.—The Commodity Credit Corporation 
shall 
establish 
disaster 
program 
farm 
3delds 
for 
nonprogram crops to carry out this section. 
(B) PROVEN YIELDS AVAILABLE.—If the producers on a 
farm can provide satisfactory evidence to the Commodity 
Credit Corporation of actual crop yields on the farm for at 
least 1 of the immediately preceding 3 crop years, the yield 
for the farm shall be based on such proven yields. 
(C) PROVEN YIELDS NOT AVAILABLE.—If such data do not 
exist for any of the 3 preceding crop years, the Commodity 
Credit Corporation shall establish a 3deld for the farm by 
using a county average 3deld for the commodity, or by using 
other data available to it. 
(D) COUNTY AVERAGE YIELDS.—In establishing county 
average jdelds for nonprogram crops, the Commodity Credit 
Corporation shall use the best available 
information 
concerning jdelds. Such information may include extension 
service records, credible nongovernmental studies, and 
yields in similar counties. 
(3) RESPONSIBIUTY OF PRODUCERS.—It shall be the responsibil-
ity of the producers of nonprogram crops to provide satisfactory 
evidence of 1989 crop losses resulting from damaging weather or 
related condition in 1988 or 1989 in order for such producers to 
obtain disaster pajonents under this section. 
SEC. 105. CROP QUALITY REDUCTION DISASTER PAYMENTS. 
(a) IN GENERAL.—To ensure that all producers of 1989 crops 
covered under sections 101 through 104 are treated equitably, the 
Secretary of Agriculture may make additional disaster payments to 
producers of such crops who suffer losses resulting from the reduced 
quality of such crops caused by damaging weather or related condi-
tion in 1988 or 1989, as determined by the Secretary. 
(b) EuGiBLE PRODUCERS.—If the Secretary determines to make 
crop quality disaster payments available to producers under subsec-
tion (a), producers on a farm of a crop described in subsection (a) 
shall be eligible to receive reduced quality disaster payments only if 
such producers incur a deficiency in production of not less than 45 
percent and not more than 75 percent for such crop (as determined 
under section 101,102,103, or 104, as appropriate). 
(c) MAXIMUM PAYMENT RATE.—The Secretary shall establish the 
reduced quality disaster pa3anent rate, except that such rate shall 
not exceed 10 percent, as determined by the Secretary, o
f
— 
(1) the established price for the crop, for commodities covered 
under section 101; 
(2) the basic county loan rate for the crop (or a comparable 
price if there is no current basic county loan rate), for commod-
ities covered under section 102; 
PUBLIC LAW 101-82—AUG. 14, 1989 
103 STAT. 573 
(3) the payment level under section 103(aX3), for commodities 
covered by section 103; and 
(4) the payment level under section 104(aX2), for commodities 
covered under section 104. 
(d) DETERMINATION OP PAYMENT.—The amount of payment to a 
producer under this section shall be determined by multiplying the 
payment rate established under subsection (c) by the portion of the 
actual harvested crop on the producer's farm that is reduced in 
quality by such natural disaster in 1988 or 1989, as determined by 
the Secretary. 
SEC. 106. EFFECT OF FEDERAL CROP INSURANCE PAYMENTS. 
In the case of producers on a farm who obtained crop insurance 
for the 1989 crop of a commodity under the Federal Crop Insurance 
Act (7 U.S.C. 1501 et seq.), the Secretary of Agriculture shall reduce 
the amount of payments made available under this subtitle for such 
crop to the extent that the amount determined by adding the net 
amount of crop insurance indemnity payment (gross indemnity less 
premium paid) received by such producers for the deficiency in the 
production of the crop and the disaster payment determined in 
accordance with this subtitle for such crop exceeds the amount 
determined by multiplying— 
(1) 100 percent of the yield used for the calculation of disaster 
payments made under this subtitle for such crop; by 
(2) the sum of the acreage of such crop planted to harvest and 
the acreage for which prevented planting credit is approved by 
the Secretary (or, in the case of disaster payments under section 
101, the eligible acreage established under sections lOl(aXl) and 
101(aX2XA));by 
(3XA) in the case of producers who participated in a produc-
tion adjustment program for the 1989 crop of wheat, feed grains, 
upland cotton, extra long staple cotton, or rice, the established 
price for the 1989 crop of the commodity; 
(B) in the case of producers who did not participate in a 
production adjustment program for the 1989 crop of wheat, feed 
grains, upland cotton, extra long staple cotton, or rice, the basic 
county loan rate (or a comparable price, as determined by the 
Secretary, if there is no current beisic county loan rate) for the 
1989 crop of the commodity; 
(C) in the case of producers of sugar beets, sugarcane, peanuts, 
or tobacco, the payment level for the commodity established 
under section 103(aX3); and 
(D) in the case of producers of soybeans or a nonprogram crop 
(as defined in section 104(dXl)), the simple average price re-
ceived by producers of the commodity, as determined by the 
Secretary, during the marketing years for the immediately 
preceding 5 crops of the commodity, excluding the year in which 
the average price was the highest and the year in which the 
average price was the lowest in such period. 
SEC. 107. CROP INSURANCE COVERAGE FOR THE 1990 CROPS. 
(a) REQUIREMENT.—Subject to the limitations under subsection 0)), 
producers on a farm, to be eligible to receive a disaster payment 
under this subtitle, an emergency loan under subtitle C of the 
Consolidated Farm and Rural Development Act (7 U.S.C. 1961 et 
seq.) for crop losses due to damaging weather or related condition in 
1988 or 1989, or forgiveness of the repayment of advance deficiency 
103 STAT. 574 
PUBLIC LAW 101-82-AUG. 14, 1989 
payments under section 101(b), must agree to obtain multiperil crop 
insurance under the Federal Crop Insurance Act (7 U.S.C. 1501 et 
seq.) for the 1990 crop of the commodity for which such payments, 
loans, or forgiveness are sought. 
(b) LIMITATIONS.—Producers on a farm shall not be required to 
agree to obtain crop insurance under subsection (a) for a commod-
i t y -
C
D unless such producers' deficiency in production, with re-
spect to the crop for which a disaster payment under this 
subtitle otherwise may be made, exceeds 65 percent; 
(2) where, or if, crop insurance coverage is not available to the 
producers for the commodity for which the payment, loan, or 
forgiveness is sought; 
(3) if the producers' annual premium rate for such crop 
insurance is an amount greater than 125 percent of the average 
premium rate for insurance on that commodity for the 1989 
crop in the county in which the producers are located; 
(4) in any case in which the producers' annual premium for 
such crop insurance is an amount greater than 25 percent of the 
amount of the payment, loan, or forgiveness sought; or 
(5) if the producers can establish by appeal to the county 
committee established under section 8(b) of the Soil Conserva-
tion and Domestic Allotment Act (16 U.S.C. 590(b)), or to the 
county committee established under section 332 of the Consoli-
dated Farm and Rural Development Act (17 U.S.C. 1982), as 
appropriate, that the purchase of crop insurance would impose 
an undue financial hardship on such producers and that a 
waiver of the requirement to obtain crop insurance should, in 
the discretion of the county committee, be granted. 
(c) IMPLEMENTATION.— 
(1) C!ouNTY COMMITTEES.—The Secretary of Agriculture shall 
ensure (acting through the county committees established 
under section 8(b) of the Soil Conservation and Domestic Allot-
ment Act and located in the counties in which the assistance 
programs provided for under sections 101 through 105 are 
implemented and through the county committees established 
under section 332 of the Consolidated Farm and Rural Develop-
ment Act in counties in which emergency loans, as described in 
subsection (a), are made available) that producers who apply for 
assistance, as described in subsection (a), obtain multiperil crop 
insurance as required under this section. 
(2) OTHER SOURCES.—Each producer who is subject to the 
requirements of this section may comply with such require-
ments by providing evidence of multiperil crop insurance cov-
erage from sources other than through the county committee 
office, as approved by the Secretary. 
Regulations. 
(3) COMMISSIONS.—The Secretary shall provide by regulation 
for a reduction in the commissions paid to private insurance 
agents, brokers, or companies on crop insurance contracts en-
tered into under this section sufficient to reflect that such 
insurance contracts principally involve only a servicing func-
tion to be performed by the agent, broker, or company. 
(d) REPAYMENT OF BENEFITS.—Notwithstanding any other provi-
sion of law, if (prior to the end of the 1990 crop year for the 
commodity involved) the crop insurance coverage required of the 
producer under this section is canceled by the producer, the 
producer— 
PUBLIC LAW 101-82—AUG. 14, 1989 
103 STAT. 575 
(1) shall make immediate repayment to the Secretary of any 
dis£ister payment or forgiven advance deficiency payment that 
the producer otherwise is required to repay; and 
(2) shall become immediately liable for full repayment of all 
principal and interest outstanding on any emergency loan de-
scribed in subsection (a) made subject to this section. 
SEC. 108. CROPS HARVESTED FOR FORAGE USES. 
Not later than 15 days after the date of the enactment of this Act, 
the Secretary of Agriculture shall announce the terms and condi-
tions by which producers on a farm may establish a 1989 yield with 
respect to crops that will be harvested for silage and other forage 
uses. 
SEC. 109. PAYMENT LIMITATIONS. 
(a) LIMITATION.—Subject to subsections (h) and (c), the total 
amount of payments that a person shall be entitled to receive under 
one or more of the programs established under this subtitle may not 
exceed $100,000. 
(b) No DOUBLE BENEFITS.—No person may receive disaster pay- Animals, 
ments under this subtitle to the extent that such person receives a 
livestock emergency benefit for lost feed production in 1989 under 
section 606 of the Agricultural Act of 1949 (7 U.S.C. 1471d). 
(c) COMBINED LIMITATION.— 
(1) IN GENERAL.—No person may receive any payment under 
this subtitle or benefit under title VI of the Agricultural Act of 
1949 (7 U.S.C. 1471 et seq.) for livestock emergency losses suf-
fered in 1989 if such payment or benefit will cause the combined 
total amount of such payments and benefits received by such 
person to exceed $100,000. 
(2) ELECTION.—If a producer is subject to paragraph (1), the 
person may elect (subject to the benefits limitations under 
section 609 of the Agricultural Act of 1949 (7 U.S.C. 1471g)) 
whether to receive the $100,000 in such payments, or such 
livestock emergency benefits (not to exceed $50,000), or a com-
bination of payments and benefits specified by the person. 
(d) REGULATIONS.—The Secretary of Agriculture shall issue 
regulations— 
(1) defining the term "person" for the purposes of this section 
•y and section 151, which shall conform, to the extent practicable, 
to the regulations defining the term "person" issued under 
^ 
section 1001 of the Food Security Act of 1985 (7 U.S.C. 1308); and 
(2) prescribing such rules as the Secretary determines nec-
essary to ensure a fair and reasonable application of the limita-
tions established under this section. 
SEC. 110. NO DOUBLE PAYMENTS ON REPLANTED ACREAGE. 
^a) REDUCTION OF DISASTER PAYMENTS.—Effective only for produc-
ers on a farm who receive disaster payments under this subtitle for 
a crop of a commodity, the Secretary of Agriculture shall reduce 
such payments by an amount that reflects the value of any crop 
such producers plant for harvest in 1989 to replace the crop for 
which disaster payments are received. 
(b) REPLACEMENT CROPS.—For purposes of subsection (a), a crop 
shall be considered to be planted to replace the crop for which 
disaster payments are received if (because of loss or damage to the 
first crop due to damaging weather or related condition in 1988 or 
103 STAT. 576 
PUBLIC LAW 101-82—AUG. 14, 1989 
1989) the second crop is planted on acreage on which the producers 
planted, or were prevented from planting, the first crop. 
(c) ADMINISTRATION.—In carrying out this section, the Secretary 
shall— 
(1) determine the value of the second crop based on the actual 
jdeld of the producers and average market prices for the second 
crop during a representative period; and 
(2) take into account the historical cropping patterns of 
producers. 
SEC. 111. SUBSTITUTION OF CROP INSURANCE PROGRAM YIELDS. 
(a) IN GENERAL.—Notwithstanding any other provision of this Act, 
the Secretary of Agriculture may permit each eligible producer (as 
defined in subsection (d)) of a 1989 crop of a commodity who has 
obtained multiperil crop insurance for such crop (or, as provided in 
subsection (c), who obtsdned multiperil crop insurance for the 
producer's 1988 crop of such commodity) under the Federal Crop 
Insurance Act (7 U.S.C. 1501 et seq.) to substitute, at the discretion 
of the producer, the crop insurance yield for such crop, as estab-
lished under such Act, for the farm yield otherwise assigned to the 
producer under this subtitle, for the purposes of determining such 
producer's eligibility for a disaster pa)ntnent on the 1989 crop under 
this subtitle and the amount of such pa3anent. 
(b) ADJUSTMENT OF ADVANCED DEFICIENCY PAYMENTS.— 
(1) IN GENERAL.—Notwithstanding any other provision of this 
Act, if an eligible producer of wheat, feed grains, cotton, or rice 
elects to substitute yields for such producer's 1989 crop under 
subsection (a), the producer's eligibility for a waiver or repay-
ment of an advance deficiency payment on such crop under this 
subtitle shall be adjusted as provided in paragraph (2). 
(2) AMOUNT.—The amount of production of such crop on 
which the producer otherwise would be eligible for waiver of 
repayment of advance deficiency pajonents under this subtitle 
shall be reduced by an amount of production equal to the 
difference between— 
(A) the amount of production eligible for disaster pay-
ments under this subtitle using a substituted jrield under 
this section; and 
(B) the amount of production that would have been eli-
gible for disaster payments using the farm program pay-
ment jdeld otherwise assigned to the producer under this 
subtitle. 
(c) MULTIPERIL CROP INSURANCE NOT AVAILABLE.—A producer 
may use the crop insurance jdeld for the producer's 1988 crop of a 
. commodity for purposes of substituting jdelds under subsection (a) if 
the producer demonstrates to the Secretary that, through no fault of 
the producer, multiperil crop insurance under the Federal Crop 
Insurance Act was not made available to the producer for the 
producer's 1989 crop of the commodity. 
(d) DEFINITION OF EUGIBLE PRODUCER.—For purposes of this sec-
tion, the term "eligible producer" means a producer of the 1989 crop 
of wheat, feed grains, upland cotton, extra long staple cotton, rice, or 
soybeans. 
SEC. 112. DEFINITIONS. 
As used in this subtitle: 
PUBLIC LAW 101-82—AUG. 14, 1989 
103 STAT. 577 
(1) DAMAGING WEATHER.—The term "damaging weather" in-
cludes but is not limited to drought, hail, excessive moisture, 
freeze, tornado, hurricane, or excessive wind, or any combina-
tion thereof. 
(2) RELATED CONDITION.—The term "related condition" in-
cludes but is not limited to insect infestations, plsuit diseases, or 
other deterioration of a crop of a commodity, including 
aflatoxin, that is accelerated or exacerbated naturally as a 
result of damaging weather occurring prior to or during 
harvest. 
Subtitle B—Orchards 
SEC. 121. ELIGIBILITY. 
(a) DROUGHT LOSS.—Subject to the limitation in subsection (b), the 
Secretary of Agriculture shall provide assistance, as specified in 
section 122, to eligible orchardists that planted trees for commercial 
purposes but lost such trees as a result of freeze or related condition 
in 1989, as determined by the Secretary. 
(b) LIMITATION.—An eligible orchardist shall qualify for assistance 
under subsection (a) only if such orchardist's tree mortality, as a 
result of the natural disaster, exceeds 45 percent (adjusted for 
normal mortality). 
SEC. 122. ASSISTANCE. 
The assistance provided by the Secretary of Agriculture to eligible 
orchardists for losses described in section 121 shall consist of 
either— 
(1) reimbursement of 65 percent of the cost of replsmting trees 
lost due to freeze or related condition in 1989 in excess of 45 
percent mortality (adjusted for normal mortality); or 
(2) at the discretion of the Secretary, sufficient seedlings to 
reestablish the stand. 
SEC. 123. LIMITATION ON ASSISTANCE. 
(a) LiMFTATiON.—The total amount of payments that a person 
shall be entitled to receive under this subtitle may not exceed 
$25,000, or an equivalent value in tree seedlings. 
(b) REGULATIONS.—The Secretary of Agriculture shall issue 
regulations— 
(1) defining the term "person" for the purposes of this sub-
title, which shall conform, to the extent practicable, to the 
regulations defining the term "person" issued under section 
1001 of the Food Security Act of 1985 (7 U.S.C. 1308) and the 
Disaster Assistance Act of 1988 (7 U.S.C. 1421 note); and 
(2) prescribing such rules as the Secretary determines nec-
essary to ensure a fair and reasonable application of the limita-
tion established under this section. 
SEC. 124. DEFINITION. 
As used in this subtitle, the term "eligible orchardist" means a 
person who produces annual crops from trees for commercial pur-
poses and owns 500 acres or less of such trees. 
103 STAT. 578 
PUBLIC LAW 101-82—AUG. 14, 1989 
SEC. 125. DUPLICATIVE PAYMENTS. 
The Secretary of Agriculture shall establish guidelines to ensure 
that no person receives duplicative payments under this subtitle and 
the forestry incentives program, agricultural conservation program, 
or other Federal program. 
SEC. 126. SENSE OF CONGRESS ON CROP INSURANCE FOR ORCHARD 
CROPS. 
It is the sense of Congress that the Secretary of Agriculture 
should expeditiously expand the availability of multiperil crop 
insurgince under the Federal Crop Insurance Act (7 U.S.C. 1501 et 
seq.) to all orchard crops. 
Subtitle C—Forest Crops 
SEC. 131. ELIGIBILITY. 
(a) DROUGHT LOSS.—Subject to the limitation in subsection 0)), the 
Secretary of Agriculture shall provide assistance, as specified in 
section 132, to eligible tree farmers that planted tree seedlings in 
1988 or 1989 for commercial purposes but lost such seedlings as a 
result of drought or related condition in 1989, as determined by the 
Secretary. 
0)) LIMITATION.—An eligible tree farmer shall qualify for Eissist-
ance under subsection (a) only if such tree farmer's tree seedling 
mortality, as a result of the natural disaster, exceeds 45 percent 
(adjusted for normal mortality). 
SEC. 132. ASSISTANCE. 
The assistance provided by the Secretary of Agriculture to eligible 
tree farmers for losses described in section 131 shall consist of 
either— 
(1) reimbursement of 65 percent of the cost of replanting 
seedlings lost due to drought or related conditions in 1989 in 
excess of 45 percent mortality (adjusted for normal mortality); 
or 
(2) at the discretion of the Secretary, sufficient tree seedlings 
to reestablish the stand. 
SEC. 133. LIMITATION ON ASSISTANCE. 
(a) LIMITATION.—The total amount of payments that a person 
shall be entitled to receive under this subtitle may not exceed 
$25,000, or an equivalent value in tree seedlings. 
(b) REGULATIONS.—The Secretary of Agriculture shall issue regu-
lations— 
(1) defining the term "person" for the purposes of this sub-
title, which shall conform, to the extent practicable, to the 
regulations defining the term "person" issued under section 
1001 of the Food Security Act of 1985 and the Disaster Assist-
ance Act of 1988; and 
(2) prescribing such rules as the Secretary determines nec-
essary to ensure a fair and reasonable application of the limita-
tion established under this section. 
PUBLIC LAW 101-82—AUG. 14, 1989 
103 STAT. 579 
SEC. 134. DEFINITION. 
As used in this subtitle, the term "eligible tree farmer" means a 
person who grows trees for harvest for commercial purposes and 
owns 1,000 acres or less of such trees. 
SEC. 135. DUPLICATIVE PAYMENTS. 
The Secretary of Agriculture shall establish guidelines to ensure 
that no person receives duplicative payments under this subtitle and 
the forestry incentives program, agricultural conservation program, 
or other Federal program. 
Subtitle D—Additional Assistance 
SEC. 
1
4
1
. 
NEW 
CONSERVATION 
MEASURES. 
(a) IN GENERAL.— 
(1) HAYING AND GRAZING ON CRP ACREAGE.—In the case of an 
Animals, 
owner or operator of land who has entered into a conservation 
Contracts, 
reserve program contract under subtitle D of title XII of the 
Food Security Act of 1985 (16 U.S.C. 3831 et seq.) and hays or 
grazes livestock during the 1989 crop year on acreage subject to 
such contract as authorized by the Secretary of Agriculture, the 
Secretary may not reduce the amount of rental payments made 
to such owner or operator as the result of such haying or 
greizing to the extent that the owner or operator— 
(A) carries out additional conservation practices, ap-
proved by the Soil Conservation Service in consultation 
with appropriate Federal and State agencies, to enhance 
soil, water, and wildlife conservation on or in the vicinity of 
lands subject to such contract; and 
(B) pays the costs of carrying out such practices. 
(2) AMOUNT OF REDUCTION.—The amount of the reduction 
prohibited under paragraph (1) shall equal one-half of the 
amount paid by the owner or operator to cover the costs of 
carrying out the conservation practices. 
(h) CONSERVATION PRACTICES.—For purposes of subsection (a), the 
term "conservation practices" includes— 
(1) establishment of permanent shelterbelts and windbreaks; 
(2) restoration of wetlands; 
(3) establishment of wildlife food plots; or 
(4) planting of trees. 
SEC. 142. ASSISTANCE FOR PONDS. 
Section 607(bX2XB) of the Agricultural Act of 1949 (7 U.S.C. 
1471e(bX2)(B)) is amended by inserting "or ponds" after "wells". 
Subtitle E—Administrative Provisions 
SEC. 151. INELIGIBILITY. 
(a) GENERAL RULE.—A person who has qualifying gross revenues 
in excess of $2,000,000 annually, as determined by the Secretary of 
Agriculture, shall not be eligible to receive any disaster payment or 
other benefits under this title. 
0)) QuAUFYiNG GROSS REVENUES.—For purposes of this section, 
the term "qualifying gross revenues" means— 
103 STAT. 580 
PUBLIC LAW 101-82—AUG. 14, 1989 
(1) if a majority of the person's annual income is received 
from farming, ranching, and forestry operations, the gross reve-
nue from the person's farming, ranching, and forestry oper-
ations; and 
(2) if less than a majority of the person's annual income is 
received from farming, ranching, and forestry operations, the 
person's gross revenue from all sources. 
SEC. 152. TIMING AND MANNER OF ASSISTANCE. 
(a) TIMING OF ASSISTANCE.— 
(1) IN GENERAL.— 
(A) 
ASSISTANCE MADE AVAILABLE AS SOON AS PRAC-
TICABLE.—Subject to subparagraph (B), the Secretary of 
Agriculture shall make full disaster assistance available 
under this title as soon as practicable after the date of 
enactment of this Act. 
(B) COMPLETED APPUCATION.—Subject to subparagraph 
(C), no payment or benefit provided under this title shall be 
payable or due until such time as a completed application 
for a crop of a commodity therefor has been approved. 
(C) APPUCATIONS PRIOR TO SEPTEMBER 30, 
1989.—If an 
application for a disaster payment under this title is re-
ceived by the Secretary prior to September 30, 1989, by 
producers who have harvested their 1989 crop, the Sec-
retary shall make full or advance disaster payments to such 
producers within 15 days after the application is received or 
by September 15,1989, whichever is later. 
(D) ADVANCE PAYMENTS.—If advance payments are made 
to producers under subparagraph (C), such payments shall 
not be less than 80 percent of the payments that will be 
made available to such producers under this title. 
(2) DEADUNE FOR APPUCATION.—To be eligible to receive pay-
ments under subtitle A, a person shall make application for 
such payments not later than March 31,1990, or such later date 
that the Secretary, by regulation, may prescribe. 
0?) MANNER.—The Secretary may make payments available under 
subtitle A in the form of cash, commodities, or commodity certifi-
cates, as determined by the Secretary. 
SEC. 153. COMMODITY CREDIT CORPORATION. 
(a) USE.—The Secretary of Agriculture shall use the funds, facili-
ties, and authorities of the Commodity Credit Corporation in carry-
ing out this title. 
Ot)) EXISTING AUTHORITY.—The authority provided by this title 
shall be in addition to, and not in place of, any authority granted to 
the Secretary or the Commodity Credit Corporation under any other 
provision of law. 
SEC. 154. LIMITATION ON OUTLAYS. 
(a) MAXIMUM AMOUNT.—Notwithstanding any other provision of 
law, if the acreage planted in the United States to the 1989 crop of 
corn is greater than 73,250,000 acres, the total amount expended for 
deficiency payments for the 1989 crops of wheat, feed grains, upland 
cotton, and rice under the Agricultural Act of 1949 (7 U.S.C. 1421 et 
seq.) shall not exceed $6,700,000,000. 
Ob) PRORATION.—The Secretary shall make any reduction required 
under subsection (a) on a pro rata basis. 
PUBLIC LAW 101-82—AUG. 14, 1989 
103 STAT. 581 
SEC. 155. REGULATIONS. 
The Secretary of Agriculture or the Commodity Credit Corpora-
tion, as appropriate, shall issue regulations to implement this title 
as soon as practicable after the date of enactment of this Act, 
without regard to the requirement for notice and public participa-
tion in rule making prescribed in section 553 of title 5, United States 
Code, or in Einy directive of the Secretary. 
TITLE II—EMERGENCY LIVESTOCK 
ASSISTANCE 
SEC. 201. USE OF STORED GRAIN FOR ASSISTANCE. 
IN GENERAL.—Subsection (b) of section 606 of the Agricultural Act 
of 1949 (7 U.S.C. 1471da))) is amended to read as follows: 
"Qo) If assistance is made available through the furnishing of feed 
grain under paragraph (1) or (2) of subsection (a), the Secretary— 
"(1) may provide for the furnishing of the feed grain through 
a dealer or manufacturer and the replacing of the feed grain so 
furnished from feed grain owned by the Commodity Credit 
Corporation; or 
"(2) at the option of the livestock producer, shall provide for 
the furnishing of the feed grain through the use of feed grain 
stored on the farm of the producer that has been pledged as 
collateral for a price support loan made under this Act.". 
SEC. 202. LIVESTOCK TRANSPORTATION ASSISTANCE. 
Section 606 of the Agricultural Act of 1949 (7 U.S.C. 1471d) is 
amended by adding at the end the following new subsection: 
"(f) The Secretary may make available at least $25,000,000 to 
provide livestock transportation eissistance under subsection (a)(6) 
for livestock emergencies in 1989.". 
SEC. 203. LIVESTOCK WATER DEVELOPMENT PROJECTS. 
Section 607 of the Agricultural Act of 1949 (7 U.S.C. 147le) is 
amended by adding at the end the following new subsection: 
"(c) The Secretary may make available at least $25,000,000 to 
provide special assistance under subsection (bX2) for livestock emer-
gencies in 1988 and 1989.". 
SEC. 204. ANIMAL UNIT METHODOLOGY STUDY AND REPORT. 
The Secretary of Agriculture shall conduct a study on the meth-
odology and justification of the calculations used to determine the 
animal unit figure used for purposes of the emergency feed program 
and the emergency feed assistance program under section 606 of the 
Agricultural Act of 1949 (7 U.S.C. 1471d), and report to Congress the 
results of such study within 90 days of the date of enactment of this 
Act. 
TITLE III—DISASTER CREDIT AND 
FORBEARANCE 
SEC. 301. EMERGENCY LOANS. 
7 USC 1961 note. 
Section 321(b) of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1961(b)) shall not apply to a person who otherwise 
103 STAT. 582 
PUBLIC LAW 101-82—AUG. 14, 1989 
would be eligible for an emergency loan under subtitle C of such 
Act, if such eligibility is the result of damage to an annual crop 
planted for harvest in 1989. 
7 use 1941 note. SEC. 302.1990 FARM OPERATING LOANS. 
(a) DIRECT CREDIT.—To the maximum extent practicable, the Sec-
retary of Agriculture shall ensure that direct operating loans made 
or insured under subtitle B of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 1941 et seq.) for 1990 crop production are 
made available to farmers and ranchers suffering major losses due 
to excess moisture, freeze, storm, or related condition occurring in 
1989 or drought or related condition occurring in 1988 or 1989, as 
authorized under existing law and under regulations of the Sec-
retary that implement the objective of enabling farmers and ranch-
ers to stay in business. 
(b) LOAN GUARANTEES.— 
Real property. 
(1) IN GENERAL.—Notwithstanding any other provision of law, 
Animals. 
the Secretary shall make available in fiscal year 1990 guaran-
tees to commercial or cooperative lenders for loans under sub-
title B of the Consolidated Farm and Rural Development Act, to 
refinance and reamortize 1989 operating loans, or 1989 or 1990 
installments due and payable on real estate debt, farm equip-
ment or building (including storage facilities) debt, livestock 
loans, or other operating debt, of farmers and ranchers that 
otherwise cannot be repaid due to major losses incurred by such 
farmers or ranchers as a result of excess moisture, freeze, storm, 
or related condition occurring in 1989 or drought or related 
condition occurring in 1988 or 1989. 
(2) REAMORTIZATION.—Each fiscal year 1990 guaranteed loan 
for 1988 or 1989 natural disaster purposes, as described in 
paragraph (1), shall contain terms and conditions governing the 
reamortization of the debt of the farmer or rancher that will 
provide the farmer or rancher a reasonable opportunity to 
continue to receive new operating credit while repa3dng the 
guaranteed loan, as determined by the Secretary. 
(3) EUGIBILITY.—Notwithstanding any other provision of law, 
any person eligible to receive pajrments under subtitle A of title 
I shall be deemed eligible to have guaranteed, in accordance 
with this subsection, loams made to such person by a commercial 
or cooperative lender to refinance installment payments that 
are or become due and payable during 1989 or 1990, as described 
in paragraph (1), except tnat, to be deemed eligible to have such 
loan guaranteed, the person must otherwise— 
(A) be current in the person's obligation to the commer-
cial or cooperative lender that agrees to accept the guaran-
tee in consideration of allowing the person to make the 1989 
or 1990 pa}mient or installment over a period of time not to 
exceed 6 years from the original due date of such payment 
or installment; and 
(B) meet the criteria for guaranteed loan borrowers under 
subtitle B of the Consolidated Farm and Rural Develop-
ment Act established by the Secretary. 
(c) USE OF AGRICULTURAL CREDFF INSURANCE FUND.—For purposes 
of providing guaranteed loans in accordance with subsection (b), in 
addition to funds otherwise available, the Secretary may use any 
funds available from the Agricultural Credit Insurance Fund during 
fiscal years 1989 or 1990 for emergency insured and guaranteed 
PUBLIC LAW 101-82-AUG. 14, 1989 
loans under subtitle C of the Consolidated Farm and Rural Develop-
ment Act (7 U.S.C. 1961 et seq.) to meet the needs resulting from 
natural disasters, except that funds available from such Fund first 
shall be used to satisfy the level of assistance estimated by the 
Secretary to meet the needs of persons eligible for emergency 
disaster loans. 
SEC. 303. FmHA LOANS MADE TO INDIAN TRIBES. 
The Act entitled "An Act to provide for loans to Indian tribes and 
tribal corporations, and for other purposes" (25 U.S.C. 488 et seq.) is 
amended by adding at the end thereof the following new section: 
"SEC. 6. REDUCTION OF UNPAID PRINCIPAL. 
"(a) IN GENERAL.—The Secretary of Agriculture may, on the 
application of the borrower of a loan or loans made under this Act, 
reduce the unpaid principal balance of such loan or loans to the 
current fair market value of the land purchased with the proceeds of 
the loan or loans if— 
"(1) the fair market value of the land has declined by at least 
25 percent since such land was purchased by the borrower; 
"(2) the land has been held by the borrower for a period of at 
least 5 years; and 
"(3) the Secretary of the Interior finds that the borrower has 
insufficient income to both repay the loan or loans and provide 
normal tribal governmental services. 
"(b) FAIR MARKET VALUE.— 
"(1) APPRAISAL.—Current fair market value under subsection 
(a) shall be determined through an appraisal by an independent 
qualified fee appraiser, selected by mutual agreement between 
the borrower and the Secretary of Agriculture. 
"(2) COSTS.—The cost of appraisals undertaken under para-
graph (1) shall be paid by the borrower. 
"(c) APPEALS.—Decisions of the Secretary of Agriculture under 
this section shall be appealable in accordance with the provisions of 
section 333B of the Consolidated Farm and Rural Development Act 
(1 U.S.C. 1983b). 
"(d) FUTURE APPUCATIONS.—A borrower that had a loan or loans 
reduced under this section shall not submit an application for 
another reduction on such loan or loans for a period of 5 years after 
the initial reduction.". 
TITLE IV—RURAL BUSINESSES 
103 STAT. 583 
25 use 493. 
SEC. 401. DISASTER ASSISTANCE FOR RURAL BUSINESS ENTERPRISES. 7 use 1929a 
note. 
(a) LOAN GUARANTEES.—The Secretary of Agriculture shall 
guarantee loans made in rural areas to— 
(1) public, private, or cooperative organizations, to Indian Indians, 
tribes on Federal and State reservations or other federally 
recognized Indian tribal groups, or to any other business enti-
ties to assist such organizations, tribes, or entities in alleviating 
the distress caused to such organizations, tribes, or entities, 
directly or indirectly, by the drought, freeze, storm, excessive 
moisture, or related condition in 1988 or 1989; and 
(2) such organizations, tribes, or entities that refinance or 
restructure debt as a result of losses incurred, directly or in-
directly, because of such natural disasters in 1988 or 1989. 
103 STAT. 584 
PUBLIC LAW 101-82—AUG. 14, 1989 
(b) ELIGIBLE LOANS.— 
(1) IN GENERAL.—Loans guaranteed under this section shall be 
f loans made by any Federal or State chartered bank, savings and 
loan association, cooperative lending agency, insurance com-
pany, or other legally organized lending agency. 
(2) PRODUCTION AGRICULTURE.—No application for a loan 
guarantee under this section shall be denied on the basis that 
such organization, tribe, or entity engages in whole or in part in 
production agriculture. 
(c) LOAN GUARANTEE LIMITS.— 
(1) PERCEI^AGE OF PRINCIPAL AND INTEREST.—No guarantee 
under this section shall exceed 90 percent of the principal and 
interest amount of the loan or $2,500,000, whichever is the 
lesser amount. 
(2) TOTAL AMOUNT.—The total amount of loan guarantee 
under this section shall not exceed $200,000,000. 
(d) USE OF THE RURAL DEVELOPMENT INSURANCE FUND.—The Sec-
retary shall use the Rural Development Insurance Fund established 
under section 309A of the Consolidated Farm and Rural Develop-
ment Act (7 U.S.C. 1929a) for the purposes of discharging the 
obligations of the Secretary under this section. 
TITLE V—WATER-RELATED ASSISTANCE 
SEC. 501. EMERGENCY COMMUNITY WATER ASSISTANCE GRANT PRO-
GRAM. 
(a) EsTABUSHMENT OF PROGRAM.—Subtitle A of the Consolidated 
Farm and Rural Development Act is amended by inserting after 
section 306 (7 U.S.C. 1926) the following new section: 
7 u s e 1926a. 
"SEC. 306A. EMERGENCY COMMUNITY WATER ASSISTANCE GRANT PRO-
GRAM. 
Rural areas. 
"(a) IN GENERAL.—The Secretary shall provide grants in accord-
ance with this section to assist the residents of rural areas and small 
communities to secure adequate quantities of safe water— 
"(1) sifter a significant decline in the quantity or quality of 
water available from the water supplies of such rural areas and 
small communities; or 
"(2) when repairs, partial replacement, or significant mainte-
nance efforts on established water systems would remedy— 
"(A) an acute shortage of quality water; or 
"(B) a significant decline in the quantity or quality of 
water that is available. 
"OJ) PRIORITY.—In carrying out subsection (a), the Secretary 
shall— 
"(1) give priority to projects described in subsection (aXD; and 
"(2) provide at least 70 percent of all such grants to such 
projects. 
"(c) EuGiBiLiTY.—To be eligible to obtain a grant under this 
section, an applicant shall— 
"(1) be a public or private nonprofit entity; and 
"(2) in the case of a grant made under subsection (aXD, 
demonstrate to the Secretary that the decline referred to in 
such subsection occurred within 2 years of the date the applica-
tion was filed for such grant. 
"(d) USES.— 
PUBLIC LAW 101-82—AUG. 14, 1989 
103 STAT. 585 
"(1) IN GENERAL.—Grants made under this section may be 
used for waterline extensions from existing systems, laying of 
new waterlines, repairs, significant maintenance, digging of 
new wells, equipment replacement, hook and tap fees, and any 
other appropriate purpose associated with developing sources of, 
or treating, storing, or distributing water, and to assist commu-
nities in complying with the requirements of the Federal Water 
Pollution Control Act (33 U.S.C. 1251 et seq.) or the Safe Drink-
ing Water Act (42 U.S.C. 300f et seq.). 
"(2) JOINT PROPOSALS.—Nothing in this section shall preclude 
rural communities from submitting joint proposals for emer-
gency water assistance, subject to the restrictions contained in 
subsection (e). Such restrictions should be considered in the 
aggregate, depending on the number of communities involved. 
"(e) RESTRICTIONS.— 
"(1) MAXIMUM POPULATION AND INCOME.—No grant provided 
Rural areas, 
under this section shall be used to assist any rural area or 
community that— 
"(A) includes any area in any city or town with a popu-
lation in excess of 15,000 inhabitants according to the most 
recent decennial census of the United States; or 
"(B) has a median household income in excess of the State 
nonmetropolitan median household income according to the 
most recent decennial census of the United States. 
"(2) SET-ASIDE FOR SMALLER COICMUNITIBS.—Not less than 50 
> 
percent of the funds allocated under this section shall be allo-
cated to rural communities with populations that do not exceed 
5,000 Inhabitants. 
"(f) MAXIMUM GRANTS.—Grants made under this section may not 
exceed— 
"(1) in the case of each grant made under subsection (aXD, 
$500,000; and 
"(2) in the case of each grant made under subsection (aX2), 
$75,000. 
"(g) FULL FUNDING.—Subject to subsection (e), grants under this 
section shall be made in an amount equal to l
O
i
O percent of the costs 
of the projects conducted under this section. 
"(h) APPLICATION.— 
"(1) NATIONALLY COMPETITIVE APPUCATION PROCESS.—The Sec-
retary shall develop a nationally competitive application proc-
ess to award grants under this section. The process shall include 
criteria for evaluating applications, including population, 
median household income, and the severity of Uie decline in 
quantity or quality of water. 
"(2) TIMING.—The Secretary shall make every effort to review 
and act on applications within 60 days of the date that such 
applications are submitted, 
"(i) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to 
be appropriated to carry out this section, $35,000,000 for each of the 
fiscal yearB 1990 and 1991, such sums to remain authorized until 
fully appropriated.", 
(b) IMPLEMENTATION.— 
(1) 
REGULATIONS.—The Secretary 
of Agriculture shall 7USCi926a 
publish— 
note. 
(A) interim final regulations to car^ out section 306A of 
the Consolidated Farm and Rural Development Act (as 
103 STAT. 586 
PUBLIC LAW 101-82—AUG. 14, 1989 
added by subsection (a) of this section) not later than 45 
days after the date of enactment of this Act; and 
(B) final regulations to carry out section 306A of such Act 
not later than 90 da3rs after the date of enactment of this 
Act. 
(2) FUNDS.— 
(A) OBUGATION.—The Secretary shall designate 70 per-
cent of the funds made available for the first fiscal year for 
which appropriations are made under section 306A(i) of the 
Consolidated Farm and Rural Development Act not later 
than 5 months after the date such funds are appropriated. 
(B) RELEASE.—The Secretary may release funds prior to 
the issuance of final regulations under paragraph (IXB) for 
grants tmder section 306A(aXl) of the Consolidated Farm 
and Rursd Development Act. 
SEC. 502. LIVESTOCK WATER ASSISTANCE. 
Section 402 of the Agricultural Credit Act of 1978 (16 U.S.C. 2202) 
is amended— 
(1) by inserting after "measures" the following: "(including 
measures carried out to assist confined livestock)"; and 
(2) effective only for fiscal year 1989, by striking "periods" 
and inserting "any fiscal year in which there is a period", 
SEC. 503. DISASTER ASSISTANCE FOR WATERSHED PROTECTION ACTIVI-
TIES. 
Subtitle A of title IV of the Disaster Assistance Act of 1988 is 
sunended by inserting after section 401 (7 U.S.C. 2204c) the following 
new section: 
16 u s e 2203 
"SEC. 402. DISASTER ASSISTANCE FOR WATERSHED PROTECTION ACTIVI-
note. 
TIES. 
"(a) IN GENERAL.—The Secretary of Agriculture may provide 
disaster relief assistance in accordsmce with this section to repair 
damage caused by storms occurring in 1988 or 1989 to watersheds 
located in any county in any State, to the extent that funds au-
thorized by this section remain available. 
"(b) FORM OF ASSISTANCE.—The assistance authorized by this sec-
tion— 
"(1) includes both financial and technical assistance; and 
"(2) shall be provided in a manner consistent with similar 
assistance authorized under section 403 of the Agricultural 
Credit Act of 1978 (16 U.S.C. 2203). 
"(c) AUTHORIZATION OP APPROPRIATIONS.—There are authorized to 
be appropriated to carry out this section $25,000,000 for fiscal year 
1990.'" 
TITLE VI^GENERAL PROVISIONS 
SEC. 601. SHRINKAGE ALLOWANCE FOR PEANUTS. 
Effective only for the 1988 through 1990 crops of peanuts, section 
359(pX2XB) of the Agricultural Adjustment Act of 1938 (7 U.S.C. 
1359(pX2XB)) is amended— 
(1) in clause (i), by striking "(less such reasonable allowances 
for shrinkage as the Secretory may prescribe)"; and 
(2) by adding at the end the following new clause: 
PUBLIC LAW 101-82—AUG. 14, 1989 
103 STAT. 587 
"(ivXD The obligation of a handler to export peanuts in 
Exports, 
quantities described in this subparagraph shall be reduced by a 
shrinkage allowance, to be determined by the Secretary, to 
reflect actual dollar value shrinkage experienced by handlers in 
commercial operations, except that such allowance shall not be 
less than 4y2 percent, except as provided in subclause (II). 
"(II) The Secretary may provide a lower shrinkage allowance 
for a handler who fails to comply with restrictions on the use of 
peanuts, as may be specified by the Commodity Credit Corpora-
tion, to take into account common industry practices.". 
SEC. 602. ADVANCED DEFICIENCY REPAYMENT DEADLINE FOR 1988 
CROPS. 
Section 201(bX4) of the Disaster Assistance Act of 1988 (7 U.S.C. 
1421 note) is amended by striking "July 31, 1989" and inserting 
"July 31,1990". 
SEC. 603. PLANTING OF ALTERNATE CROPS ON PERMITTED ACREAGE. 
(a) IN GENERAL.—Subparagraph (EXi) of section 504(bX2) of the 
Agricultural Act of 1949 (7 U.S.C. 1464(bX2)) (as amended by the Act 
entitled "An Act to amend the Agricultural Act of 1949 for the 1990 
crops to allow the planting of alternative crops on permitted acreage 
and to amend the provisions regarding the designation of farm 
acreage base as acreage base established for oats") is amended by 
inserting "mung bean, mustard," £ifter "milkweed,". 
Oa) EFFECTIVE DATE.—The amendment made by subsection (a) 
7USCi464note. 
shall become effective 1 day after the date of enactment of the Act 
so entitled. 
SEC. 604. CROP INSURANCE YIELD COVERAGE. 
The Federal Crop Insurance Act is amended by inserting after 
section 508 (7 U.S.C. 1508) the following new section: 
"SEC. 508A. CROP INSURANCE YIELD COVERAGE. 
7 USC 1508a. 
"(a) IN GENERAL.— 
"(1) YIELD COVERAGE.—Effective beginning with crops har-
vested in 1990, the Corporation may implement multiperil crop 
insurance underwriting rules that ensure that yield coverage, 
as specified in subsection (b), is provided to producers participat-
ing in the Federal crop insurance program. 
(2) APPUCATION.—Such underwriting rules and yield cov-
erage, £is specified in subsection (b), shall apply to wheat, feed 
grains, cotton, rice, and soybeans. 
"(b) YIELD COVERAGE.— 
Contracts. 
"(1) GENERAL COMMODITIES.— 
"(A) PLANS.—A crop insurance contract offered to a pro-
ducer of a crop of wheat, feed grains, cotton, or rice shall 
make available to such producer— 
"(i) jrield coverage based on the producer's farm pro-
gram yield for the crop esteblished under the program 
for the commodity involved; or 
"(ii) a plan that uses the producer's actual production 
history for the 5 previous crops, subject to paragraph 
(3), to determine the yield coverage. 
"(B) CoMMODiTY-BY-coMMODiTY BASIS.—A producer may 
choose between the two alternatives described in subpara-
, graph (A) on a commodity-by-commodity basis. 
,,„ 
103 STAT. 588 
PUBLIC LAW 101-82—AUG. 14, 1989 
Public 
information. 
Federal 
Register, 
publication. 
"(2) SOYBEANS.—A crop insurance contract offered to a pro-
ducer of a crop of soybeans shall be based on a yield coverage 
plan that uses the producer's actual production history for the 5 
previous crops, subject to paragraph (3), to determine the jdeld 
coverage. 
"(3) ACTUAL PRODUCTION HISTORY.— 
"(A) INADEQUATE DOCUMENTATION.—Under a plan that 
uses actual production history, as provided for in paragraph 
(1) or (2), if the producer does not submit adequate docu-
mentation of such history for a crop— 
"(i) in the case of any commodity other than soy-
beans, the producer shall be assigned the producer's 
farm program yield for that crop of the commodity; and 
"(ii) in the case of soybeans, the producer shall be 
assigned a yield equal to 100 percent of the area aver-
age jdeld for that crop of soybeans, as established by 
the Corporation. 
"(B) 
NOTICE OF AREA AVERAGE YIELDS.—Area average 
3rields applicable to any county shall be posted and avaU-
able for inspection at the county office of the Agricultural 
Stabilization and Conservation Service. 
"(C) MINIMUM COVERAGE.—In no case may a producer's 
coverage under such plan that uses actual production his-
tory be less than the coverage established using farm pro-
gram yields, or (for soybeans) 100 percent of the most recent 
area average 3deld. 
"(c) USE OF YIELD COVERAGE PROVISIONS.— 
"(1) NOTICE.—The Corporation shsJl ensure that, whenever 
the jdeld coverage provisions of this section go into effect, 
producers are given adequate notice of such provisions in ad-
vance of the crop insurance sign-up period applicable to the 
crops to which such provisions first will apply. 
"(2) SIGN-UP PERIOD.—To the extent that the provisions of this 
section are made applicable to the 1990 crops, the Corporation 
shall ensure that the sign-up period for any 1990 crop does not 
end earlier than 60 days following the publication of notice of 
such provisions in the Federal Register.". 
Approved August 14, 1989. 
LEGISLATIVE HISTORY—H.R. 2467 (S. 1429): 
HOUSE REPORTS: No. 101-91 (Comm. on Agriculture). 
SENATE REPORTS: No. 101-93 accompanying S. 1429 (Comm. on Agriculture, 
Nutrition, and Forestry). 
CONGRESSIONAL RECORD, Vol. 135 (1989): 
June 27, considered and passed House. 
Aug. 2, considered and passed Senate, amended. 
Aug. 4, House concurred in Senate amendment with an amendment. Senate 
concurred in House amendment. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 25 (1989): 
Aug. 14, Presidential remarks.