30 



The cleanup assistance was to be at a 64 percent cost sharing 

 level. Many producers cleaned up their farms with the 64 percent 

 cost sharing as their guidelines. A month later, the cost sharing 

 was cut in half to 32 percent. This left many producers with severe 

 financial problems, since they used funds to clean up their farms 

 that they needed to reconstruct their businesses. 



A month later, the USDA reversed itself and went back to the 

 original 64 percent. 



As of today, because of these program delays, many producers 

 have not received the additional 32 percent promised. This contin- 

 ues to be a tremendous hardship on many agricultural producers. 



The second problem area is the tree assistance program or TAP. 

 This was offered to create and fund the restoration and replace- 

 ment of stock plants and of ornamental nursery plant producers. 

 The nurseries generate much of their inventories off of these stock 

 plants. In the same manner, ornamental tropical fish farmers 

 produce 90 percent of their inventories from our brood fish. 



A program for aquaculture similar to the TAP for nurseries 

 would help the tropical fish farmer replace their brood stock. As it 

 is now, most fish farmers cannot afford to purchase either brood 

 stock because their revenues are still too low. We cannot even put 

 fish aside to grow out for future breeders, which is essential to the 

 survival of our businesses. This process can take IV2 years. We are 

 forced to sell inventory to maintain our day-to-day business oper- 

 ations. 



It may take until early 1995 to reach a prestorm inventory level. 

 In other words, we are robbing from our future sales to meet the 

 day-to-day necessities of our business. This only compounds our 

 problems. 



The third and final concern is the disaster assistance program or 

 DAP. 



The aquaculture business like the ornamental nursery business 

 is a year-round agricultural concern. Inventories are generated for 

 sales some 6 months later and some 2 years later. The 60-40 rule 

 used to determine participation in the DAP program disqualified 

 many fish farms and nurseries. Most of the crops destroyed by the 

 hurricane were being grown to be sold in 1993 and 1994. The in- 

 ventory of our fish farms and nursery farms is actually our crop, 

 and eliminating the arbitrary calendar year guidelines in the DAP 

 requirements would enable year-round farmers to qualify for their 

 disaster assistance program. 



The problems we had with access to the cleanup program, the 

 TAP, and the disaster program, as well as problems obtaining 

 FmHA loans, could be permanently solved if the proper definitions 

 including aquaculture and ornamental tropical fish as agriculture 

 in all of the USDA agencies was adopted. 



Thank you for your time and concern on behalf of the aqua- 

 culture business and ornamental tropical fish. 



[The prepared statement of Mr. Biro appears at the conclusion 

 of the hearing.] 



Mrs. Thurman [resuming chair]. Next, Mr. Garrison. 



