109th CONGRESS
1st Session
H. R. 3754
To provide disaster assistance to agricultural producers for 2005
crop and livestock losses, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
September 13, 2005
Mr. POMEROY introduced the following bill; which was referred to the Committee
on Agriculture, and in addition to the Committees on Resources and Small Business,
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 provide disaster assistance to agricultural producers for 2005
crop and livestock losses, and for other purposes.
Be it enacted by the Senate and House of Representatives 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 Disaster
Assistance Act of 2005'.
(b) Table of Contents- The table of contents of this Act is as follows:
Sec. 1. Short title; table of contents.
TITLE I--AGRICULTURAL PRODUCTION LOSSES
Sec. 101. Crop disaster assistance.
Sec. 102. Livestock assistance program.
Sec. 103. Conservation programs.
Sec. 104. Disaster relief for small business concerns damaged by drought.
Sec. 105. Assistance to fisheries for red tide outbreak in New England.
Sec. 106. Flooded crop and grazing land.
TITLE II--NUTRITIONAL SUPPLEMENTAL ASSISTANCE AND AGRICULTURAL ECONOMIC
STIMULUS
Sec. 201. Replenishment of Section 32.
Sec. 202. Extension of marketing loans.
Sec. 203. Supplemental economic loss payments.
Sec. 204. National dairy market loss payments.
TITLE III--EMERGENCY DESIGNATION
Sec. 301. Emergency designation.
SEC. 2. DEFINITIONS.
(1) ADDITIONAL COVERAGE- The term `additional coverage' has the meaning
given the term in section 502(b)(1) of the Federal Crop Insurance Act (7
U.S.C. 1502(b)(1)).
(2) INSURABLE COMMODITY- The term `insurable commodity' means an agricultural
commodity (excluding livestock) for which the producers on a farm are eligible
to obtain a policy or plan of insurance under the Federal Crop Insurance
Act (7 U.S.C. 1501 et seq.).
(3) LIVESTOCK- The term `livestock' includes--
(E) other livestock, as determined by the Secretary.
(4) NONINSURABLE COMMODITY- The term `noninsurable commodity' means a crop
for which the producers on a farm are eligible to obtain assistance under
section 196 of the Federal Agriculture Improvement and Reform Act of 1996
(7 U.S.C. 7333).
(5) SECRETARY- The term `Secretary' means the Secretary of Agriculture.
TITLE I--AGRICULTURAL PRODUCTION LOSSES
SEC. 101. CROP DISASTER ASSISTANCE.
(a) In General- The Secretary shall use such sums as are necessary of funds
of the Commodity Credit Corporation to make emergency financial assistance
authorized under this section available to producers on a farm that have incurred
qualifying losses described in subsection (c).
(1) IN GENERAL- Except as provided in paragraph (2), the Secretary shall
make assistance available under this section in the same manner as provided
under section 815 of the Agriculture, Rural Development, Food and Drug Administration
and Related Agencies Appropriations Act, 2001 (Public Law 106-387; 114 Stat.
1549A-55), including using the same loss thresholds for quantity and economic
losses as were used in administering that section, except that the loss
threshold shall be 25 percent instead of 35 percent and the payment rate
shall be 50 percent of the established price, instead of 65 percent.
(2) LOSS THRESHOLDS FOR QUALITY LOSSES- In the case of a payment for quality
loss for a crop under subsection (c)(2), the loss thresholds for quality
loss for the crop shall be determined under subsection (d).
(c) Qualifying Losses- Assistance under this section may be made available
for losses due to damaging weather or any related condition (including losses
due to crop diseases and insects and delayed harvest) associated with crops
that are (as determined by the Secretary) any combination of (as determined
by the producers on a farm)--
(1) quantity losses for the 2005 crop;
(2) quality losses for the 2005 crop; or
(3) severe economic losses for the 2005 crop.
(1) IN GENERAL- Subject to paragraph (3), the amount of a payment made to
producers on a farm for a quality loss for a crop under subsection (c)(2)
shall be equal to the amount obtained by multiplying--
(A) 75 percent of the payment quantity determined under paragraph (2);
by
(B) 50 percent of the payment rate determined under paragraph (3).
(2) PAYMENT QUANTITY- For the purpose of paragraph (1)(A), the payment quantity
for quality losses for a crop of a commodity on a farm shall equal the lesser
of--
(A) the actual production of the crop of the commodity on the farm; or
(B) the quantity of expected production of the crop of the commodity on
the farm, using the formula used by the Secretary to determine quantity
losses for the crop of the commodity under subsection (c)(1).
(3) PAYMENT RATE- For the purpose of paragraph (1)(B) and in accordance
with paragraphs (5) and (6), the payment rate for quality losses for a crop
of a commodity on a farm shall be equal to the difference between--
(A) the per unit market value that the units of the crop affected by the
quality loss would have had if the crop had not suffered a quality loss;
and
(B) the per unit market value of the units of the crop affected by the
quality loss.
(4) ELIGIBILITY- For producers on a farm to be eligible to obtain a payment
for a quality loss for a crop under subsection (c)(2), the amount obtained
by multiplying the per unit loss determined under paragraph (1) by the number
of units affected by the quality loss shall be at least 25 percent of the
value that all affected production of the crop would have had if the crop
had not suffered a quality loss.
(5) MARKETING CONTRACTS- In the case of any production of a commodity that
is sold pursuant to 1 or more marketing contracts (regardless of whether
the contract is entered into by the producers on the farm before or after
harvest) and for which appropriate documentation exists, the quantity designated
in the contracts shall be eligible for quality loss assistance based on
the 1 or more prices specified in the contracts.
(6) OTHER PRODUCTION- For any additional production of a commodity for which
a marketing contract does not exist or for which production continues to
be owned and produced by the producers on a farm, quality losses shall be
based on the average local market discounts for reduced quality, as determined
by the appropriate State committee of the Farm Service Agency.
(7) QUALITY ADJUSTMENTS AND DISCOUNTS- The appropriate State committee of
the Farm Service Agency shall identify the appropriate quality adjustment
and discount factors to be considered in carrying out this subsection, including
the average local discount or loans made by the Farm Service Agency or crop
insurance coverage under the Federal Crop Insurance Act (7 U.S.C. 1501 et
seq.).
(8) ELIGIBLE PRODUCTION- The Secretary shall carry out this subsection in
a fair and equitable manner for all eligible production, including the production
of fruits and vegetables, other specialty crops, and field crops.
(e) Eligibility for Assistance-
(1) IN GENERAL- Except as provided in paragraph (2), the producers on a
farm shall not be eligible for assistance under this section with respect
to losses to an insurable commodity or noninsurable commodity if the producers
on the farm--
(A) in the case of an insurable commodity, did not obtain a policy or
plan of insurance for the insurable commodity under the Federal Crop Insurance
Act (7 U.S.C. 1501 et seq.) for the crop incurring the losses;
(B) in the case of a noninsurable commodity, did not file the required
paperwork, and pay the administrative fee by the applicable State filing
deadline, for the noninsurable commodity under section 196 of the Federal
Agriculture Improvement and Reform Act of 1996 (7 U.S.C. 7333) for the
crop incurring the losses;
(C) had average adjusted gross income (as defined by section 1001D(a)
of the Food Security Act of 1985 (7 U.S.C. 1308-3a(a)), of greater than
$2,500,000 in 2004; or
(D) were not in compliance with highly erodible land conservation and
wetland conservation provisions.
(2) CONTRACT WAIVER- The Secretary may waive paragraph (1) with respect
to the producers on a farm if the producers enter into a contract with the
Secretary under which the producers agree--
(A) in the case of an insurable commodity, to obtain a policy or plan
of insurance under the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.)
providing additional coverage for the insurable commodity for each of
the next 2 crops, at a coverage level this provides--
(i) not less than 65 percent of the actual production history for the
crop produced on the farm; and
(ii) 100 percent of the expected market price or a comparable coverage
(as determined by the Federal Crop Insurance Corporation); and
(B) in the case of a noninsurable commodity, to file the required paperwork
and pay the administrative fee by the applicable State filing deadline,
for the noninsurable commodity for each of the next 2 crops under section
196 of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C.
7333).
(3) EFFECT OF VIOLATION- In the event of the violation of a contract under
paragraph (2) by a producer, the producer shall reimburse the Secretary
for the full amount of the assistance provided to the producer under this
section.
(1) IN GENERAL- Subject to paragraph (2), the Secretary shall make payments
to producers on a farm for a crop under this section not later than 60 days
after the date the producers on the farm submit to the Secretary a completed
application for the payments.
(2) INTEREST- If the Secretary does not make payments to the producers on
a farm by the date described in paragraph (1), the Secretary shall pay to
the producers on a farm interest on the payments at a rate equal to the
current (as of the sign-up deadline established by the Secretary) market
yield on outstanding, marketable obligations of the United States with maturities
of 30 years.
SEC. 102. LIVESTOCK ASSISTANCE PROGRAM.
(a) Emergency Financial Assistance- The Secretary shall use such sums as are
necessary of funds of the Commodity Credit Corporation to make and administer
payments for livestock losses to producers for 2005 losses in a county that
has received an emergency designation by the President or the Secretary during
calendar year 2005, of which an amount determined by the Secretary shall be
made available for the American Indian livestock program under section 806
of the Agriculture, Rural Development, Food and Drug Administration, and Related
Agencies Appropriations Act, 2001 (Public Law 106-387; 114 Stat. 1549A-51).
(b) Administration- The Secretary shall make assistance available under this
section in the same manner as provided under section 806 of the Agriculture,
Rural Development, Food and Drug Administration, and Related Agencies Appropriations
Act, 2001 (Public Law 106-387; 114 Stat. 1549A-51).
(c) Mitigation- In determining the eligibility for or amount of payments for
which a producer is eligible under the livestock assistance program, the Secretary
shall not penalize a producer that takes actions (recognizing disaster conditions)
that reduce the average number of livestock the producer owned for grazing
during the production year for which assistance is being provided.
(d) Interest on Prior Payments-
(1) IN GENERAL- Payments that were due to a producer under section 101(b)
of the Emergency Supplemental Appropriations for Hurricane Disasters Assistance
Act, 2005 (Public Law 108-324; 118 Stat. 1234) but not paid by the Secretary
as of August 28, 2005, shall earn interest at a rate equal to the current
(as of August 28, 2005) market yield on outstanding, marketable obligations
of the United States with maturities of 30 years.
(2) FUNDING- Interest payable under paragraph (1) shall be carried out using
only funds made available for travel expenses, or salaries and expenses
of Presidential appointees, of the Department of Agriculture.
(e) Livestock Indemnity Payments-
(1) IN GENERAL- The Secretary shall use such sums as are necessary of funds
of the Commodity Credit Corporation to make livestock indemnity payments
to producers on farms that have incurred livestock losses during calendar
year 2005 due to a disaster, as determined by the Secretary, including losses
due to hurricanes, floods, and anthrax.
(2) PAYMENT RATES- The payment rate for indemnity payments made to producers
on a farm under paragraph (1) shall be equal to--
(A)(i) in the case of a cow, steer, or bull that weighs 500 pounds or
more on the date of death of the cow, steer, or bull, $400 per head; and
(ii) in the case of a cow, steer, or bull that weighs less than 500 pounds
on the date of death of the cow, steer, or bull, $250 per head; and
(B) in the case of other types of livestock, a rate determined by the
Secretary based on documentation provided by the producers on a farm,
including a death certificate or other certification provided by a licensed
veterinarian.
SEC. 103. CONSERVATION PROGRAMS.
(a) Emergency Conservation Program- The Secretary shall use an additional
$100,000,000 of the funds of the Commodity Credit Corporation to provide assistance
under the emergency conservation program established under title IV of the
Agricultural Credit Act of 1978 (16 U.S.C. 2201 et seq.).
(b) Emergency Watershed Protection Program- The Secretary shall use an additional
$250,000,000 of the funds of the Commodity Credit Corporation to provide assistance
under the emergency watershed protection program established under section
403 of the Agricultural Credit Act of 1978 (16 U.S.C. 2203).
SEC. 104. DISASTER RELIEF FOR SMALL BUSINESS CONCERNS DAMAGED BY DROUGHT.
(a) Drought Disaster Authority-
(1) DEFINITION OF DISASTER- Section 3(k) of the Small Business Act (15 U.S.C.
632(k)) is amended--
(A) by inserting `(1)' before `For the purposes'; and
(B) by adding at the end the following:
`(B) For purposes of section 7(b)(2), the term `disaster' includes--
`(ii) below average water levels in the Great Lakes, or on any body of water
in the United States that supports commerce by small business concerns.'.
(2) DROUGHT DISASTER RELIEF AUTHORITY- Section 7(b)(2) of the Small Business
Act (15 U.S.C. 636(b)(2)) is amended--
(A) by inserting `(including drought), with respect to both farm-related
and non-farm-related small business concerns,' before `if the Administration';
and
(B) in subparagraph (B), by striking `the Consolidated Farmers Home Administration
Act of 1961 (7 U.S.C. 1961)' and inserting the following: `section 321
of the Consolidated Farm and Rural Development Act (7 U.S.C. 1961), in
which case, assistance under this paragraph may be provided to farm-related
and non-farm-related small business concerns, subject to the other applicable
requirements of this paragraph'.
(b) Limitation on Loans- From funds otherwise appropriated for loans under
section 7(b) of the Small Business Act (15 U.S.C. 636(b)), not more than $9,000,000
may be used during each of fiscal years 2005 through 2008, to provide drought
disaster loans to non-farm-related small business concerns in accordance with
this section and the amendments made by this section.
(c) Prompt Response to Disaster Requests- Section 7(b)(2)(D) of the Small
Business Act (15 U.S.C. 636(b)(2)(D)) is amended in the second sentence by
striking `Upon receipt of such certification, the Administration may' and
inserting `Not later than 30 days after the date of receipt of such certification
by a Governor of a State, the Administration shall respond in writing to that
Governor on its determination and the reasons therefore, and may'.
(d) Rulemaking- Not later than 45 days after the date of enactment of this
Act, the Administrator of the Small Business Administration shall promulgate
final rules to carry out this section and the amendments made by this section.
SEC. 105. ASSISTANCE TO FISHERIES FOR RED TIDE OUTBREAK IN NEW ENGLAND.
(a) In General- Out of any funds in the Treasury not otherwise appropriated,
the Secretary of the Treasury shall transfer to the Secretary of Commerce
to provide assistance to fisheries suffering due to the red tide outbreak
in New England--
(1) on October 1, 2005, $15,000,000; and
(2) on October 1, 2006, $10,000,000.
(b) Receipt and Acceptance- The Secretary of Commerce shall be entitled to
receive, shall accept, and shall use to carry out this section the funds transferred
under subsection (a), without further appropriation.
(c) Availability of Funds- Funds transferred under subsection (a) shall remain
available until expended.
SEC. 106. FLOODED CROP AND GRAZING LAND.
(a) In General- The Secretary shall compensate eligible owners of flooded
crop and grazing land in--
(1) the Devils Lake basin; and
(2) the McHugh, Lake Laretta, and Rose Lake closed drainage areas of the
State of North Dakota.
(1) IN GENERAL- To be eligible to receive compensation under this section,
an owner shall own land described in subsection (a) that, during the 2 crop
years preceding receipt of compensation, was rendered incapable of use for
the production of an agricultural commodity or for grazing purposes (in
a manner consistent with the historical use of the land) as the result of
flooding, as determined by the Secretary.
(2) INCLUSIONS- Land described in paragraph (1) shall include--
(A) land that has been flooded;
(B) land that has been rendered inaccessible due to flooding; and
(C) a reasonable buffer strip adjoining the flooded land, as determined
by the Secretary.
(3) ADMINISTRATION- The Secretary may establish--
(A) reasonable minimum acreage levels for individual parcels of land for
which owners may receive compensation under this section; and
(B) the location and area of adjoining flooded land for which owners may
receive compensation under this section.
(c) Sign-Up- The Secretary shall establish a sign-up program for eligible
owners to apply for compensation from the Secretary under this section.
(d) Compensation Payments-
(1) IN GENERAL- Subject to paragraphs (2) and (3), the rate of an annual
compensation payment under this section shall be equal to 90 percent of
the average annual per acre rental payment rate (at the time of entry into
the contract) for comparable crop or grazing land that has not been flooded
and remains in production in the county where the flooded land is located,
as determined by the Secretary.
(2) REDUCTION- An annual compensation payment under this section shall be
reduced by the amount of any conservation program rental payments or Federal
agricultural commodity program payments received by the owner for the land
during any crop year for which compensation is received under this section.
(3) EXCLUSION- During any year in which an owner receives compensation for
flooded land under this section, the owner shall not be eligible to participate
in or receive benefits for the flooded land under--
(A) the Federal crop insurance program established under the Federal Crop
Insurance Act (7 U.S.C. 1501 et seq.);
(B) the noninsured crop assistance program established under section 196
of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C.
7333); or
(C) any Federal agricultural crop disaster assistance program.
(e) Relationship to Agricultural Commodity Programs- The Secretary, by regulation,
shall provide for the preservation of cropland base, allotment history, and
payment yields applicable to land described in subsection (a) that was rendered
incapable of use for the production of an agricultural commodity or for grazing
purposes as the result of flooding.
(1) IN GENERAL- An owner that receives compensation under this section for
flooded land shall take such actions as are necessary to not degrade any
wildlife habitat on the land that has naturally developed as a result of
the flooding.
(2) RECREATIONAL ACTIVITIES- To encourage owners that receive compensation
for flooded land to allow public access to and use of the land for recreational
activities, as determined by the Secretary, the Secretary may--
(A) offer an eligible owner additional compensation; and
(B) provide compensation for additional acreage under this section.
(1) IN GENERAL- The Secretary shall use $15,000,000 of funds of the Commodity
Credit Corporation to carry out this section.
(2) PRO-RATED PAYMENTS- In a case in which the amount made available under
paragraph (1) for a fiscal year is insufficient to compensate all eligible
owners under this section, the Secretary shall pro-rate payments for that
fiscal year on a per acre basis.
SEC. 107. REGULATIONS.
(a) In General- The Secretary may promulgate such regulations as are necessary
to implement this Act and the amendments made by this Act.
(b) Procedure- The promulgation of the regulations and administration of this
Act and the amendments made by this Act shall be made without regard to--
(1) the notice and comment provisions of section 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').
(c) Congressional Review of Agency Rulemaking- In carrying out this section,
the Secretary shall use the authority provided under section 808 of title
5, United States Code.
TITLE II--NUTRITIONAL SUPPLEMENTAL ASSISTANCE AND AGRICULTURAL ECONOMIC
STIMULUS
SEC. 201. REPLENISHMENT OF SECTION 32.
(a) Definition of Specialty Crop- In this section:
(1) IN GENERAL- The term `specialty crop' means any agricultural crop.
(2) EXCEPTION- The term `specialty crop' does not include--
(1) IN GENERAL- The Secretary shall use $25,500,000 of funds of the Commodity
Credit Corporation to make grants to the several States and the Commonwealth
of Puerto Rico to be used to support activities that promote agriculture.
(2) AMOUNTS- The amount of the grants shall be--
(A) $500,000 to each of the several States; and
(B) $250,000 to each of the Commonwealth of Puerto Rico and the District
of Columbia.
(c) Grants for Value of Production- The Secretary shall use $66,700,000 of
funds of the Commodity Credit Corporation to make a grant to each of the several
States, as follows:
(1) California, $31,660,000.
(3) Washington, $4,805,000.
(6) Michigan, $1,625,000.
(10) New York, $1,330,000.
(11) Wisconsin, $1,285,000.
(12) North Carolina, $770,000.
(14) North Dakota, $690,000.
(15) Minnesota, $660,000.
(17) New Jersey, $550,000.
(18) Pennsylvania, $490,000.
(19) New Mexico, $450,000.
(24) Massachusetts, $320,000.
(27) Louisiana, $230,000.
(28) South Carolina, $220,000.
(29) Tennessee, $200,000.
(34) Mississippi, $125,000.
(38) Connecticut, $90,000.
(41) New Hampshire, $60,000.
(45) West Virginia, $45,000.
(48) South Dakota, $20,000.
(49) Rhode Island, $20,000.
(d) Special Crop Priority- As a condition on the receipt of a grant under
this section, a State shall agree to give priority to the support of specialty
crops in the use of the grant funds.
(1) IN GENERAL- The Secretary shall use $175,000,000 of funds of the Commodity
Credit Corporation to make additional grants in accordance with paragraph
(2) to--
(A) the States of Alabama, Florida, Louisiana, Mississippi, and Tennessee;
and
(B) any other State that is housing evacuees or suffering damage from
Hurricane Katrina or a related condition.
(2) PURPOSE OF GRANTS- A grant provided under paragraph (1) shall--
(A) be in an amount determined by the Secretary; and
(B) be used in accordance with paragraph (3) to support activities that
promote agriculture.
(3) USE OF FUNDS- A State may use funds from a grant awarded under this
subsection--
(A) to supplement State food bank programs or other nutrition assistance
programs;
(B) to promote the purchase, sale, or consumption of agricultural products;
(C) to provide economic assistance to agricultural producers, giving a
priority to the support of specialty crops; or
(D) for other purposes as determined by the Secretary.
SEC. 202. EXTENSION OF MARKETING LOANS.
(a) In General- Notwithstanding section 1203(b) of the Farm Security and Rural
Investment Act of 2002 (7 U.S.C. 7933(b)), the Secretary shall extend the
date of settlement of any marketing assistance loan made available under subtitle
B of that Act (7 U.S.C. 7931 et seq.) for a period of not less than 180 days
after the date on which the loan reaches maturity.
(b) Storage Payments- During the period of an extension under subsection (a),
the Secretary shall make storage payments for any commodity affected by the
marketing assistance loan for which the extension was granted.
SEC. 203. SUPPLEMENTAL ECONOMIC LOSS PAYMENTS.
The Secretary shall make a supplemental economic loss payment to any producer
on a farm that received a payment or loan for crop year 2005 under title I
of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 7901 et seq.)
at a rate equal to the product obtained by multiplying--
(1) 20 percent of the direct payment rate in effect for the program crop
of the farmer;
(2) the program crop base of the farmer; and
(3) the program payment yield for each program crop of the farmer.
SEC. 204. NATIONAL DAIRY MARKET LOSS PAYMENTS.
(a) In General- Section 1502 of the Farm Security and Rural Investment Act
of 2002 (7 U.S.C. 7982) is amended by striking `2005' each place it appears
in subsections (f) and (g)(1) and inserting `2006'.
(b) Period of Effectiveness- Notwithstanding section 257 of the Balanced Budget
and Emergency Deficit Control Act of 1985 (2 U.S.C. 907), the amendment made
by subsection (a) shall be effective only during the period beginning on the
first day of the first month beginning after the date of enactment of this
Act and ending September 30, 2006.
TITLE III--EMERGENCY DESIGNATION
SEC. 301. EMERGENCY DESIGNATION.
The amounts provided under this Act are designated as an emergency requirement
pursuant to section 402 of H. Con. Res. 95 (109th Congress).
END
