Date: 1981-05-19
Speaker: DE LA GARZA (democrat)
Chamber: H

Mr. Speaker. I yield myself such time as I may (onsume. Mr. Speaker. I urge my colleagues to join me in voting to approve S. 730 today. S. 730. as approved by the Senate on May 5. will authorize the Federal Crop Insurance Corporation to use funds otherwise available for the payment of indemnities to cover administrative and operating expenses of the Corporation incurred during the current fiscal year. This legislation is need(e( because thq Federal Crop Insurance Corporation does not now have sufflclent 1981 funding to continue operation of the expanded crop insurance program for farmers authorized by the Federal Crop Insurance Act of 1980. Although the Department of Agriculture requested funds for expansion of the crop insurance program last year. the request did not reach Congress in time for inclusion in the Agricultural Appropriations Act for fiscal year 1981. However. the Department of Agriculture received permisslon from the Office of Management and Budget in December 1980 to begin expansion. and requested a supplemental appropriation to cover the costs of expansion in fiscal year 1981. By the end of this week. the funds apportioned to FCIC on a deficiency basis will probably be exhausted. Furthermore. I think it is obvious to everyone that it is unlikely that a supplemental appropriation can be enacted into law before the Corporations funds run out. A shortage of operating funds at this time will seriously jeopardise the crop insurance program. Spring is traditionally a period of increased program activity as farmers purchase insurance before planting. Moreover. the Department of Agriculture is just beginning to implement the Federal Crop Insurance Act of 1980. The interruption of service to insured farmers will breach contractual commitments farmers have entered into with the Corporation in good faith and will imperil successful implementation of the new allrisk crop insurance program. As I speak these words. FCIC is formulating its plans to close down shop. as required by the Office of Management and Budget. Under the provisions of S. 730. premiums collected from farmers and funds already transferred from the Commodity Credit Corporation for the emergency payment of indemnities could be used temporarily to provide funds for the Corporations administrative and operating expenses. Such authority would be applicable only to those administrative and operating expenses incurred during fiscal year During consideration of S. 730 by the Senate. several Members of that body expressed concern over the fact that this legislation would provide a kind of "backdoor" financing which would effectively . get around the budget process and circumvent the 1981 budget. I must confess that I share this concern. and I well understand the reservations some of my colleagues may have on this matter. However. the bill we have before us was amended by the Senate tospecifically limit the amount of money which can be transferred by the FCIC for paying administrative and operating expenses. The limit set in this legislation is $14 million. and I am Informed by USDA officials that this amount is adequate to take care of the emergency needs of the Corporation. In the meantime. work continues on the supplemental appropriations bill. which contains a supplemental request for PCIC of $42.2 million for administration and operations. The $14 million authorized to be spent in this bill should be a sufficient amount to carry the Corporation through the time necessary for Congress to complete all actions on the supplemental bill. Mr. Speaker. I cannot emphasize too much the iurgency of this bill. It would be tragic if the Corporations activities were interrupted due to a shortage of operating funds. These activities are vital to the economic wellbeing of the Nations farmers. The expanded crop insurance program we initiated in the last Congress is a very significant program for the agricultural producers of the country and for the Federal Government. This program enables producers to cope with disaster situations where. after large investments in time and money have been made. something occurs that is totally out of the control of the producers but brings about a considerable loss. The program allows the disasters to be addressed in an economical. logical. and businesslike way. We have been operating under a disaster payments program that has not been comprehensive. It has been very expensive to the Government. and has. in fact. covered a relatively few number of producers and a very smail number of crops. The protection offered in the crop insurance program which this bill addresses itself to is broad coverage. It is available and will be available throughout the entire country -covering a wide variety of crops. covering losses that may be brought about by any kind of disaster. So it is a program that deserves to be implemented in a very effective and efficient manner. and should be expedited to the fullest extent possible. What this bill does is to make it possible to continue to implement the crop insurance program so that these protections will be available to the agricultural producers of the country. I urge my colleagues to act favorably on this legislation and speed it on to the President for signature.